- Pakistan is planning to launch a $250 million Green Impact Fund (GIF) to support green micro and small enterprises (MSMEs), using international climate change commitments. The fund will offer concessional loans, equity with first-loss guarantees, and technical assistance, supported by global climate financing sources.
- Pakistan is the first country to launch a long-term Country Partnership Framework (CPF) with the World Bank for 10 years. The World Bank approved a $20 billion loan for Pakistan, but challenges to its implementation are noted due to political divisions and worsening security in Balochistan and Khyber-Pakhtunkhwa, which are identified as "critical" risks.
- The federal government increased the prices of petrol by Rs 3.47/litre and diesel by Rs 2.61/litre for the fortnight until end-January on the back of rising international oil prices driven by the US sanctions on oil exports to China and India. Petrol was increased from Rs 252.66-Rs 256.13/litre and of high-speed diesel from Rs 258.34-Rs 260.95/litre.
- The Large-Scale Manufacturing (LSM) sector contracted by 1.25% in the first five months of 2024-25, with declines from August 2024 onward. After positive growth in the earlier part of 2024, LSM saw a significant 3.81% drop in November.
- Pakistan's exports to five Central Asian countries (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan) fell by 8.87% to $80.82 million during July-November 2024-25. Imports from these countries increased significantly, reaching $82.03 million.
- A historic ceasefire deal, brokered by the US, Qatar, and Egypt, was reached to end the 15-month Gaza conflict, which killed over 47,000 Palestinians. The agreement includes a six-week ceasefire, Israeli troop withdrawal, and the exchange of hostages, set to begin Sunday, while Israeli strikes continue, killing 27 and prompting evacuations in northern Gaza.
AGRI-UPDATES - COMMODITIES, POLICY & DEVELOPMENTS
- Daily Rates: Find the following rates on the hyperlinked titles: [Shipping Intelligence], [Pakistan Stock Exchange], [Kibor International Kibor Rates], [BRIndex100 & BR Sectoral Indices], [Activities of Karachi Port Trust, Port Qasim]
- Footwear Export: Rs 3.9 billion was the value of footwear exported in Nov 2024, up 43% from exports of Rs 2.73 billion last year, according to the PBS. [ET]
- LNG Imports Drop 20.4% in November: Rs 65.9 billion was the value of liquified natural gas imported in Nov 2024, down 20.4% compared to imports of Rs 82.7 billion last year, according to the PBS. [ET]
- LSM Sector Contracts 1.25% in 2024-25: The Large-Scale Manufacturing (LSM) sector contracted by 1.25% in the first five months of 2024-25, with declines from August 2024 onward. After positive growth in the earlier part of 2024, LSM saw a significant 3.81% drop in November, contributing to a 0.03% contraction for the entire fiscal year 2024. [BR] [Dawn]
- Cotton Rates Across Pakistan: The cotton rate in Sindh, Punjab, and Balochistan ranges between Rs 18,000-Rs 19,500/maund. Phutti rates vary from Rs 8,000-Rs 10,200/40 kg across these regions, with Balochi cotton priced between Rs 18,800 and Rs 19,000/maund and Primark cotton at Rs 19,300-Rs 19,500/maund. [BR]
- Pakistan's Exports to Central Asia Drop: Pakistan's exports to five Central Asian countries (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan) fell by 8.87% to $80.82 million during July-November 2024-25. Imports from these countries increased significantly, reaching $82.03 million, driven mainly by imports from Tajikistan, Uzbekistan, and Turkmenistan. Despite high-profile visits, bilateral trade has not reached its full potential. [Dawn]
- Women’s Role in Agriculture Highlighted at Conference: At the "1st International Conference on Agriculture Development & Women Empowerment & Way Forward (ICADWE-2025)" in Tandojam, speakers emphasized the key role of women in agriculture, with 67% actively involved. However, they highlighted issues of undercompensation and low wages. They called for increased representation of women in economic and marketing sectors and more involvement in market activities. [ET]
ENERGY - WEATHER, WATER & POWER
- Petrol, Diesel Prices Increased: The federal government increased the prices of petrol by Rs 3.47/litre and diesel by Rs 2.61/litre for the fortnight until end-January on the back of rising international oil prices driven by the US sanctions on oil exports to China and India. According to a notification issued by the finance ministry late on Wednesday night, the price of petrol was increased from Rs 252.66-Rs 256.13/litre and of high-speed diesel from Rs 258.34-Rs 260.95/litre. [Dawn] [ET]
- NEPRA Warns Discos on Penalties: Nepra warned K-Electric and other Discos of daily penalties for load shedding under Technical and Commercial pretexts. During a hearing on KE's FCA adjustment, Nepra noted that while KE seeks a Rs 4.98/unit refund for November 2024, its pending Rs 8.7 billion fuel cost claim could raise tariffs in February 2025 instead of reducing them. [BR] [Dawn] [ET]
- Electricity Theft Costs Rs 12.485 Billion: In 2024, electricity theft resulted in a loss of Rs 12.485 billion, with Rs 5.83 billion already recovered. A crackdown led to 216,000 FIRs and 62,452 arrests. The Ministry of Energy established a Distribution Service Operations (DSO) unit in PESCO to combat theft. Additionally, K-Electric consumers were taxed with eight types of taxes, including four kinds of General Sales Tax (GST). [ET]
- 45% Tariff Cut for EVs: Federal Minister Sardar Awais Ahmad Leghari announced a 45% tariff cut for EV charging stations, reducing rates to Rs 39.70/unit. He also highlighted plans to provide the region’s cheapest electricity and make the Winter Incentives Package a permanent, multi-year initiative to support growing industrial demand. [BR] [Dawn] [ET]
- Afghan Transit Trade Streamlined: The government is replacing the bank guarantee system with an insurance guarantee to streamline Afghan transit trade via Gwadar Port, under the Afghanistan-Pakistan Transit Trade Agreement (APTTA). This initiative, enabled by Customs Rules 2021 and updated by SRO No.1402(1)/2023, includes bonded trucks with tracking for Afghan bulk cargo like wheat, sugar, and fertilizers. [BR]
- Pakistan to Launch Green Impact Fund: Pakistan is planning to launch a $250 million Green Impact Fund (GIF) to support green micro and small enterprises (MSMEs), using international climate change commitments. The fund will offer concessional loans, equity with first-loss guarantees, and technical assistance, supported by global climate financing sources and commercial institutions. [Dawn]
- Balochistan CM Distributes Homes to Flood Victims: Balochistan Chief Minister Sarfraz Bugti handed over keys to 250 newly constructed homes to flood victims from Quetta, Pishin, Qila Saifullah, and Sohbatpur. He urged the federal government to transfer the flood rehabilitation project to the provincial administration for quicker action, criticizing delays in federal support nearly three years after the 2022 floods. [Dawn]
- Xiaomi TVs Launch in Pakistan: Air Link Communication, through its subsidiary Select Technologies, will officially launch Xiaomi Televisions in Pakistan today at the Lahore Expo Center. The televisions will be locally manufactured and distributed by Select, emphasizing Air Link's goal to boost local production and make products more accessible and affordable. [MG]
PAKISTAN - ECONOMICS, POLITICS & SECURITY
- Pakistan Launches Long-Term CPF with World Bank: Pakistan became the first country to launch a 10-year Country Partnership Framework (CPF) with the World Bank, focusing on inclusive development, human capital, and private sector growth. Prime Minister Shehbaz Sharif welcomed the initiative, stressing its alignment with Pakistan's priorities. The World Bank approved a $20 billion loan for Pakistan, but noted challenges in its implementation due to political divisions and worsening security in Balochistan and Khyber-Pakhtunkhwa, identified as critical risks. [Dawn] [ET]
- PML-N, PTI Begin Third Round Talks: Negotiations between PML-N and PTI are set to begin their third round, with PML-N members indicating that PTI's demands will require time for consultation with leadership and stakeholders. PTI has scaled down its demands to the release of detained workers and the formation of a judicial commission for investigating the May 9 and November 26 incidents. [BR]
- State Bank Raises Rs 384.7 Billion: The State Bank of Pakistan raised Rs 384.7 billion through the January 15, 2025 PIBs auction, surpassing its Rs 350 billion target. The auction saw strong demand, with bids totaling Rs 1,568 billion, and a decline in yields across most tenors, signaling improved borrowing conditions and investor confidence. [ET]
- Uraan Pakistan Initiative Announced: Ahsan Iqbal outlined the Uraan Pakistan initiative to boost exports to $60 billion, with banks supporting lending to priority sectors. Senator Aurangzeb led a meeting on Social Impact Financing and announced a 3% inflation rate, stressing reforms and confirming that the 25th IMF program would be the final one. [BR] [BR] [ET]
- US Acknowledges Pakistan's Counterterrorism Role: The US acknowledged Pakistan's significant role in counterterrorism efforts but clarified that Pakistan was never a formal ally with a defense treaty. White House National Security Advisor John Kirby highlighted the long history of cooperation, especially in combating terrorism along the Afghanistan-Pakistan border. [BR]
INTERNATIONAL - MARKET, POLITICS, SECURITY & DEVELOPMENT
- Israeli-Hamas Ceasefire: A historic ceasefire deal, brokered by the US, Qatar, and Egypt, was reached to end the 15-month Gaza conflict, which killed over 47,000 Palestinians. The agreement includes a six-week ceasefire, Israeli troop withdrawal, and the exchange of hostages, set to begin Sunday, while Israeli strikes continue, killing 27 and prompting evacuations in northern Gaza. [BR] [Dawn] [The News]
- Russia Intensifies Strike on Ukraine: Russia launched a missile and drone strike on Ukrainian energy facilities early Wednesday, intensifying its ongoing bombing campaign. The attack involved 43 missiles and 74 drones, mainly targeting western Ukraine. This came a day after Ukraine's largest aerial assault on Russian sites. In the village of Sknyliv, an elderly woman described extensive damage to her home, including blown-out windows and a damaged car. [Dawn]
- Yoon Suk Yeol Arrested Over Martial Law: Impeached South Korean leader Yoon Suk Yeol was arrested over his failed martial law attempt, becoming the first sitting president to be detained. Yoon faces insurrection charges and could face the death penalty or life imprisonment. He had resisted arrest for weeks, staying in his residence protected by loyal guards. [ET]
- Cold Weather, Sanctions Affect Oil: The International Energy Agency reported that colder winter weather has increased global oil demand, while new US sanctions on Russia and Iran could disrupt supplies. The sanctions, targeting Russia’s energy sector and Iran’s “shadow fleet,” may already be affecting oil operations from these countries. [BR]
- Global Risks Report 2025 Highlights Threats: The World Economic Forum's Global Risks Report 2025 highlights armed conflict as the biggest risk this year, citing deepening political divisions and fragmentation worldwide. Nearly a quarter of surveyed experts also identified extreme weather events, economic tensions, and disinformation as significant threats. [BR]
- Opinion: The Three “Fs” of Economy - “The United Arab Emirates has agreed to roll over its $2 billion debt due for repayment this month. This decision should help the State Bank keep the rupee stable amidst the expanding trade deficit. Meanwhile, Pakistan is taking two commendable steps — one under International Monetary Fund pressure and the other in response to shifting geopolitical realities — to strengthen its economy. The hybrid regime has finally resolved to downsize the bloated government, which consumes a significant portion of the country’s annual revenue.” - By Mohiuddin Aazim [Dawn]
- Opinion: Geopolitics of Climate Change - “Despite dismissing climate change as a hoax, the incoming Trump administration’s strategic interest in the Panama Canal, Greenland, and Canada suggests an implicit recognition of climate change’s geopolitical implications. President-elect Donald Trump has not ruled out the use of military force, if needed, to secure the canal and Greenland, and “economic force” in the case of Canada. This reflects a broader strategy of seizing climate opportunities while denying climate change’s existence.” - By Ali Tauqeer Sheikh [Dawn]
- Opinion: Fight Over Resources - “Here is an interesting question: what exactly animates the polity in Pakistan that it sees repeated military interventions in civilian politics, as well as repeated attempts by political parties to try and team up with the military and annihilate their opponents? These were the years when the so-called Charter of Democracy was in play, in which the two main signatories — the PPP and PML-N — had agreed primarily to not challenge each other’s mandate following elections, and to not team up with the security establishment in an effort to cut short each other’s tenures.” - By Khurram Husain [Dawn]
