- Flour dealers in Pindi are protesting by halting sales due to a new tax and rising prices. They demand the tax be removed and prices stabilized. The Punjab govt has set new flour prices and a complaint system for overcharging. Flour millers in KPK will strike from July 11, 2024, if the govt does not reverse recent tax increases and remove extortion checkpoints at the Punjab-KPK border.
- In FY 2023-24, Karachi Port Trust (KPT) saw a 23.43% increase in cargo handling, totaling 51.65 million tonnes. This included a 31.39% rise in dry cargo and a 1.69% increase in liquid bulk cargo. Exports grew by 47.16% to 18.80 million tonnes. Imports rose by 13% to 32.85 million tonnes, driven by a 20.21% increase in import dry cargo.
- PM Sharif announced a Rs 50-billion subsidy for low-income households using less than 200 units of electricity, cutting rates to Rs4-7 per unit for three months. This will aid about 92% of consumers, including those of K-Electric.
- On Tuesday, the stock market hit a record high, touching 81,000 driven by optimism over an IMF deal and earnings season. Key sectors like fertilizers and textiles led the gains, with notable trading in K-Electric and The Bank of Punjab. Trading volume and value surged, and foreign investors were net buyers.
- ?In FY24, Pakistani remittances rose 10.7% to $30.3 billion, driven by official channels and stable currency. June saw a 44.4% year-over-year increase, exceeding targets and forecasts. Significant growth came from Saudi Arabia, UAE, and the UK, with the rupee strengthening by 2.8% due to economic reforms and IMF support.
AGRI-UPDATES - COMMODITIES, POLICY & DEVELOPMENTS
- Govt planning to tax agriculture income: President Zardari called for modernizing agriculture and praised the media's role, while cautioning against its manipulation. The government is planning to tax agricultural income as per the International Monetary Fund conditions, however, the provincial governments would be leading the initiative to tax large landholding farmers in accordance with their profitability and expenditures. [The News] [ET]
- Wheat flour Rawalpindi Protests: Flour dealers in Rawalpindi are protesting by halting sales due to a new tax and rising prices. They demand the tax be removed and prices stabilized. The Punjab government has set new flour prices and established a complaint system for overcharging. [Dawn]
- Pakistani Mango Festival: The Pakistan Mango Festival in Dubai attracted a diverse crowd to celebrate Pakistani mangoes and promote cultural diplomacy. The event featured various activities and highlighted popular mango varieties like Chaunsa. Despite production challenges, strong demand in the Middle East led to increased export values and higher mango prices in the UAE. [BR]
- KP Flour Millers Threat: Flour millers in Khyber Pakhtunkhwa will strike from July 11, 2024, if the government does not reverse recent tax increases and remove extortion checkpoints at the Punjab-KP border. The new taxes and increased costs are expected to significantly raise flour prices.[BR]
- Samsons Agri farms: Samsons Agri Farm is innovating Pakistani agriculture by converting arid land into productive fields with advanced technology and solar power, growing diverse crops including eco-friendly tobacco, and managing livestock for meat and dairy. This project enhances economic, environmental, and social outcomes with government and military support.[BR]
- Cotton Market: On Tuesday, Lahore's cotton market was stable, with cotton prices ranging from Rs 18,100 to Rs 19,300 per maund and Phutti prices between Rs 8,200 and Rs 9,300 per 40 kg. Sales prices varied by location, and the spot rate held steady at Rs 18,300 per maund. Polyester fiber was priced at Rs 380 per kg.[BR]
- Cloth Export: Rs48.1b was the export value of cotton cloth in May 2024, down 2.5% compared to Rs49.9 billion in May 2023, according to the Pakistan Bureau of Statistics. [ET]
- Iron Import: Rs31.5b was the import value of iron and steel scrap in May 2024, up 61.0% compared to Rs19.5 billion in May 2023. [ET]
ENERGY - WEATHER, WATER & POWER
- KPT records strong growth of 23pc in FY 2023-24: In FY 2023-24, Karachi Port Trust (KPT) saw a 23.43% increase in cargo handling, totaling 51.65 million tonnes. This included a 31.39% rise in dry cargo and a 1.69% increase in liquid bulk cargo. Exports grew by 47.16% to 18.80 million tonnes, with notable increases in both export dry cargo and liquid bulk cargo. Imports rose by 13% to 32.85 million tonnes, driven by a 20.21% increase in import dry cargo, while import liquid bulk cargo remained stable. [The News] [Dawn]
- Rs 50 Bn power subsidy: PM Sharif announced a Rs 50-billion subsidy for low-income households using less than 200 units of electricity, cutting rates to Rs4-7 per unit for three months. This will aid about 92% of consumers, including those of K-Electric. The funds will come from the PSDP, which may face additional cuts. Sharif urged the elite to make sacrifices to support this relief effort. [BR] [Dawn] [ET]
- Govt okays first phase of ML-I project: Pakistan's ECNEC has approved the $3.3 billion first phase of the Mainline-I (ML-I) project, part of the $6.7 billion CPEC initiative, with further phases pending. The committee also greenlit several other major projects, including a Rs123.2 billion flood response, various water projects, a Rs 95.4 billion transit management system, a border terminal, and a Rs18.8 billion neighborhood upgrade in Karachi. [ET]
- Suki Kinari project: The 884 MW Suki Kinari Hydropower Project, starting in November 2024, includes a recently finished 500kV transmission line. This $1.8 billion initiative will save on energy costs and demonstrates robust Pakistan-China collaboration, enhancing Pakistan’s appeal to global investors. The Riali-II hydropower project will operate under a "must run" and "take-and-pay" contract, with hydrological risk borne by the sponsor. The Power Division has updated agreements to align with competitive market principles and simplify the tariff structure, supported by NEPRA and approved by the Board of PPIB. [BR] [BR]
- OGRA allows Parco to export 50,000 tonnes of furnace oil: OGRA has approved Parco to export 50,000 MT of furnace oil for July, driven by record-high exports and reduced domestic demand. This surplus is due to lower power generation needs, causing storage issues. Delays in the Brownfield Refinery Policy, which aims to cut furnace oil production and increase higher-value fuels, are expected to impact future production adjustments.[The News]
- Karachi Rains & Roads: In Karachi, recent rain after a dust storm brought some relief but caused flooding, three deaths, and traffic problems. The city's drainage system was criticized by opposition parties, while the Mayor defended the administration's efforts. Power outages were widely reported. [Dawn]
- IRSA team visits Sukkur Barrage: IRSA officials met Sukkur Barrage management to discuss reduced water supplies to Balochistan due to damage from June 20. Repairs are ongoing, and water flows are gradually increasing, with recent releases of 4,850 cusecs into Khirthar Canal. The team inspected the work, noting progress on repairs, including those completed by a Chinese firm. [Dawn]
- Solarisation of Schools and Hospitals: The Punjab cabinet approved the standardization of the Holy Quran, solar systems for consumers, and various regulatory reforms. It also supported a Green Energy Project, police service changes, and expanded the Walled City Authority, along with leadership changes for land management and electricity relief. [Dawn]
- Monsoons & Urban Flooding: Pakistan is bracing for heavy monsoon rains that could cause flooding and landslides across various regions. The Senate committee urged better disaster management and coordination to handle these challenges. Additionally, recent forest fires in Margalla Hills have raised concerns, prompting calls for joint preventive action. [BR] [ET]
PAKISTAN - ECONOMICS, POLITICS & SECURITY
- Apex court reserves verdict: The Supreme Court of Pakistan is deciding on a challenge by the Sunni Ittehad Council (SIC) regarding the denial of reserved seats for women and minorities. The court is considering allegations of election unfairness and bias against the Election Commission of Pakistan and has reserved its judgment after hearing arguments from both the SIC and PTI. [The News]
- PSX flirting at 81,000 level: On Tuesday, the stock market hit a record high, driven by optimism over an IMF deal and earnings season. Key sectors like fertilizers and textiles led the gains, with notable trading in K-Electric and The Bank of Punjab. Trading volume and value surged, and foreign investors were net buyers. [Dawn]
- Govt Borrowing surges: In FY 2023-24, Pakistan’s government borrowing more than doubled to Rs 8.564 trillion due to high debt and IMF demands. Total debt reached Rs 67.8 trillion by June 2024. The State Bank of Pakistan cut its benchmark interest rate to 20.5% to address inflation and slow growth. [The News]
- Remittances Surge in FY24: In FY24, Pakistani remittances rose 10.7% to $30.3 billion, driven by official channels and stable currency. June saw a 44.4% year-over-year increase, exceeding targets and forecasts. Significant growth came from Saudi Arabia, UAE, and the UK, with the rupee strengthening by 2.8% due to economic reforms and IMF support. Analysts predict ongoing strong growth despite a 12% remittance drop reported by the World Bank in 2023. [The News] [Dawn]
- Punjab Cabinet Approves Major Initiatives: Solar Systems, Price Controls, and Environmental Reforms: The Punjab cabinet, under Chief Minister Maryam Nawaz, approved solar systems for low-consumption users, flour price controls, and a Social Economic Registry. They also introduced reforms in education and pharmacy, expanded the Walled City Authority, and established PEECA. The Roshan Gharana Program supports solar energy projects and aims to manage food prices and advance socio-economic reforms.[The News]
- Tajir Dost Scheme: The FBR has expanded the "Tajir Dost Scheme" to 42 cities and aims to register 3.2 million traders. A draft notification on property valuation is due by July 15. Traders oppose the new tax based on property values, proposing alternatives that the FBR has rejected. [BR]
- Pak Focus on FDI: Deputy Prime Minister Ishaq Dar highlighted Pakistan's focus on attracting foreign investment, with a $10 billion pledge from the UAE and enhanced cooperation in ICT and renewable energy. [The News]
- Govt defends eavesdropping permit for ISI: The Pakistani government has authorized the ISI to intercept phone calls for national security, prompting criticism from the opposition who fear misuse and a threat to privacy. The government defends the move as consistent with existing legal practices, while the opposition argues that it could violate recent legislation and civil liberties. [Dawn]
INTERNATIONAL - MARKET, POLITICS, SECURITY & DEVELOPMENT
- Israeli Genocide: Israeli strikes on Gaza schools used as shelters have caused significant casualties and damage amid ongoing military offensives. The UN criticizes the humanitarian impact, including claims of a starvation campaign. Diplomatic efforts are in progress to negotiate a truce and prisoner exchange, but recent escalations complicate these talks.[Dawn]
- Water Security: Climate change is thought to be the biggest long-term and unmitigated external risk to water security in Pakistan, and it is a key reason why staple crop yields and livestock production are projected to decrease by up to 20 and 30 percent, respectively, says the World Bank. The bank in its latest report “Rethinking Social Protection in South Asia: Toward Progressive Universalism,” stated that climate change will push between 5.7 million and 9.0 million additional people into poverty in Pakistan, and Bangladesh will have roughly 13.3 million internal climate change migrants by 2050. [BR]
- India races to build power plants in region claimed by China: India is investing $1 billion to fast-track 12 hydropower projects in Arunachal Pradesh. This initiative aims to support local states and improve infrastructure amid ongoing border tensions with China, which disputes the region and worries about environmental impacts from Indian projects.[BR]
- Oil prices slip: Oil prices dropped after Hurricane Beryl caused less damage than feared, leading to a reduction in supply disruption concerns. Brent futures fell to $85.44 per barrel, and US crude to $82.10. Major Texas ports and refineries were reopening, while Middle East tensions and expectations of a US interest rate cut also influenced market sentiment. [BR]
- Global Wheat, Corn, Soybean Futures: Chicago wheat and corn futures stabilized, while soybeans fell to a four-year low. The USDA reported improved crop conditions for corn, soybeans, and wheat. Russian wheat prices are falling with new crop supplies, and Brazil has harvested 63% of its second corn crop for 2024. [BR]
- NCC pushes SME development initiatives: The NCC for SMEs held its 11th meeting to improve SME support by streamlining registration, reducing costs, offering financial aid, and allocating land. They also focused on empowering women entrepreneurs and established a Rs5 billion fund to boost SME growth. [ET]
- Fate of documented Afghan refugees to be decided today: Pakistan's cabinet will decide on extending Afghan refugees' Proof of Residence cards. Prime Minister Sharif has criticized the slow resettlement of these refugees, with only 9,000 out of 70,000 resettled. UNHCR's Filippo Grandi urged extending the PoR cards, suspending repatriation plans, and finding long-term solutions for refugees. He proposed a future dialogue to address these issues and improve conditions for refugees and host communities. [Dawn]
- Opinion - Green shields: Extreme heat is becoming common, and forests are crucial for mitigating this. Rapid deforestation threatens these benefits, worsening issues like food and water security. Global commitments to stop deforestation are falling short, emphasizing the need for urgent action to protect and restore forests. - Jamil Ahmad [Dawn]
