- The IMF is ready to conduct the second review of Pakistan's stand-by arrangement after the formation of a new cabinet.? The IMF has overlooked Pakistan's managed exchange rate. Pakistan has not followed the IMF's advice to liberalize imports by over 50% in the latter half of the current fiscal year.
- PTI stages nationwide protests led by Imran Khan, decrying alleged election rigging, but faces heavy-handed measures in Punjab. Shehbaz Sharif's 12-14 member federal cabinet is anticipated to be sworn in today by new President Zardari.
- Date sales surge in Sindh ahead of Ramadan. The government imposed a ban on the export of bananas and onions until April 15, 2024, aiming to regulate prices during the month of Ramadan. This follows a surge in prices, with onions increasing by 34% and bananas by 7% in just one week.
- Rs 25.1 billion was the export value of Basmati rice in Jan 2024, up 96.5% compared to Rs 12.8 billion in Jan 2023.
- The Competition Commission of Pakistan (CCP) rejected Pakistan State Oil's request for an extension on exclusive fuel supply to 3 independent power producers. The government directed SNGPL and SSGC to arrange financing for PSO to ensure LNG supply. PSO's strain, with borrowing of Rs 461 billion and rising costs, threatens its ability to fund SNGPL for LNG.
- Record-breaking temperatures and the El Ni?o weather phenomenon have pushed ocean heating to a new peak in February. Oceans have absorbed 90% of excess heat from carbon pollution. Last year's ocean temperatures were unprecedented due to the combined effects of human-caused climate change and El Ni?o.
COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE
- Pakistan Wheat Production Target Threatened: Pakistan may miss its wheat production target due to high energy costs and alleged urea price manipulation. Farmers paid double the actual price for urea, prompting the government to refer a case to the Competition Commission. Wheat production is expected to reach 29 million tons, falling short of the 32 million-ton target. [ET]
- Official Rates Set for Beef & Mutton Ahead of Ramadan: The district administration has set official rates for beef and mutton ahead of Ramadan: Beef ranges from Rs 635 to Rs 950 per kg, while mutton is priced at Rs 1,350 to Rs 1,550 per kg. Retailers must display prices, with strict penalties for overcharging. [ET]
- Sindh Witnesses Date Sales Surge Ahead of Ramadan: Date sales surge in Sindh ahead of Ramadan, with vendors experiencing high demand. Small-scale vendor Zulfiqar Ali Memon reports a significant increase in earnings, from Rs 20,000 to around Rs 150,000 during the holy month. [ET]
[The Nation]
- Banana & Onion Export Freeze: The government has imposed a ban on the export of bananas and onions until April 15, 2024, aiming to regulate prices during the month of Ramadan. This decision follows a recent surge in prices, with onions increasing by 34% and bananas by 7% in just one week. [BR]
- USC Unions Threaten Strike: A joint action committee of Utility Stores Corporation (USC) unions has threatened a strike from March 16 if demands for pay rise and staff regularization are not met within 10 days. [ET]
- Pakistan's Weekly Inflation High: Food Prices Surge - In the week ending March 7, Pakistan's weekly inflation remained high at 1.11%, driven by increased food prices ahead of Ramadan for the second consecutive week. The Sensitive Price Indicator (SPI) surged by 32.39% year-on-year, with onion prices rising by 33.86% to Rs 238.30 per kg compared to the previous week. [ET]
[Dawn]
- Sindh Corporate Farming Protests: The Jeay Sindh Rahbar Committee plans protests in Sindh against the government's sale of fertile land for corporate farming. Led by Jeay Sindh Mahaz-Riaz chief Riaz Ali Chandio, the committee aims to observe G.M. Syed's death anniversary in Sann on April 25 and advocate for land distribution among landless peasants. [Dawn]
- Worn Clothes Import: Rs 9.25 billion was the import value of worn clothing in Jan 2024, up 13.1% year-on-year. [ET]
- Iron & Steel Import: Rs 43.8 billion was the import value of iron and steel in Jan 2024, down 14.3% compared to Rs 51.1 billion in Jan 2023. [ET]
- Fish & Fish Preparation Export: Rs 8.48 billion was the export value of fish and fish preparations in Jan 2024, down 1.56% compared to Rs 8.6 billion in Jan 2023. [ET]
- Meat Export: Rs 13.5 billion was the export value of meat and meat preparations in Jan 2024, up 64.5% compared to Rs 8.2 billion in Jan 2023, according to the PBS. [ET]
- Basmati Rice Export: Rs 25.1 billion was the export value of Basmati rice in Jan 2024, up 96.5% compared to Rs 12.8 billion in Jan 2023, according to the Pakistan Bureau of Statistics. [ET]
AGRI-INPUTS, WEATHER, WATER & POWER
- SNGPL Faces Tax Demand Pressure: Sui Northern Gas Pipeline Limited (SNGPL) is under pressure after receiving a Rs 160 billion tax demand notice from the Federal Board of Revenue (FBR). SNGPL has requested leniency from the Ministry of Energy due to the significant impact of the tax notice on its liquidity. [BR]
- FBR Imposes 25% Sales Tax on High-end Cars: The FBR has imposed a 25% Sales Tax on locally made or assembled cars priced above Rs 4 million, applicable to vehicles with engine capacities of 1400cc and higher. This measure is expected to generate Rs 4-4.5 billion annually for the FBR. [The News]
- Tax Ombudsman Orders Shipping Audit: The Federal Tax Ombudsman has ordered the Collector of Custom Enforcement to audit and refund unlawful charges by shipping companies, as stated by the All Pakistan Paper Merchant Association (APPMA). [BR]
- Pakistan, UNIDO Green Hydrogen Plan: The government is working with UNIDO to create a plan for Green Hydrogen production in Pakistan, supported by a $14 million funding offer. This initiative follows ongoing discussions between Pakistan's Embassy in Austria and UNIDO, focusing on innovative energy technologies for the industrial sector. [BR]
- CCP Denies PSO's Fuel Supply Extension: The Competition Commission of Pakistan (CCP) rejected Pakistan State Oil's (PSO) request for an extension on exclusive fuel supply to 3 independent power producers (IPPs). CCP reviewed PSO's applications regarding Fuel Supply Agreements with Pakgen Power Limited, Lalpir Power Limited, and Saba Power Company Limited, allowing all parties to present their views. [BR]
- Financing for PSO LNG Supply: The government has directed SNGPL and SSGC to arrange financing for PSO to ensure LNG supply. PSO's financial strain, with borrowing of Rs 461 billion and rising costs, threatens its ability to fund SNGPL for LNG. Despite gas companies recovering RLNG prices from consumers, they haven't reimbursed PSO. [The News]
- KP CM Orders New Mining Policy Creation: CM Ali Amin Gandapur directed officials to create a new mining policy for Khyber Pakhtunkhwa during a departmental meeting, aiming to enhance revenue through better mineral resource management. He also halted new mineral lease issuance until the new policy is formulated. [ET]
[The News]
[DT]
[UP]
- Heavy Rains Disrupt Life in Flood-Hit Balochistan: Heavy rains battered flood-ravaged areas of Gwadar and other regions in Balochistan on Sunday, disrupting life and traffic. The downpour flooded streets and caused traffic suspensions in Kech. The Pakistan Meteorological Department recorded significant rainfall in Gwadar, Turbat, Ormara, and Jiwani over the past 24 hours. [ET]
AGRI UPDATES & PAKISTAN POLICY
- IMF Poised for Second Pakistan Review: The IMF is ready to conduct the second review of Pakistan's stand-by arrangement after the formation of a new cabinet, according to IMF Communication Director Julie Kozack. She mentioned that the first review was approved on January 11, with disbursements totaling around $1.9 million. [BR]
- PTI Protests Nationwide, Faces Opposition in Punjab: PTI stages nationwide protests led by Imran Khan, decrying alleged election rigging, but faces heavy-handed measures in Punjab under a PML-N-led coalition government. Scores of PTI workers and leaders, including Sardar Latif Khosa and Salman Akram Raja, were detained. [Dawn]
[ET]
[ARY]
- Shehbaz Sharif's Cabinet Swearing-In: PM Shehbaz Sharif's federal cabinet is anticipated to be sworn in today (Monday). Sources suggest that around 12-14 cabinet members will likely take their oaths, with the ceremony expected to be administered by newly-elected President Asif Ali Zardari. [BR]
[ET]
- KP CM to Reinstate Free Healthcare with Sehat Card Plus: KPK CM Gandapur has decided to reintroduce free healthcare services under the Sehat Card Plus initiative in the province starting from the 1st of Ramadan. This decision follows the allocation of 5 billion rupees to State Life for the restoration of these services. [BR]
[ET]
- IMF Tolerates Pakistan's Exchange Rate Policy: The IMF has overlooked Pakistan's managed exchange rate, allowing policymakers to stabilize the economy. Despite economic challenges, the exchange rate has remained stable around Rs 280 for over 2 months. Pakistan has not followed the IMF's advice to liberalize imports by over 50% in the latter half of the current fiscal year. [Dawn]
- Pakistan's FY24 Remittances at $18.1 Billion: Pakistan received $18.1 billion in home remittances during the first 8 months of FY24, with a slight 1.2% decrease compared to the same period last year, according to the State Bank of Pakistan. Analysts anticipate a rise in remittances in March due to Ramadan and Eid. [BR]
[ET]
- ECC Approves Rs 9.990 Billion for Disaster Resilience: The Ministry of Planning seeks approval for Rs 9.990 billion as rupee cover to utilize foreign aid for enhancing Pakistan's resilience to natural disasters in FY 2023-24. The ECC has approved the Ministry's summary for technical supplementary grants. [BR]
- FBR Seeks Gates Foundation Aid for Digital Services: Government seeks Bill & Melinda Gates Foundation aid to enhance FBR's digital services amid a 41% decline in active taxpayers. 500,000 individuals removed from the Active Taxpayers List for late returns may rejoin upon paying penalties. New economic czar Muhammad Aurangzeb chairs a meeting to discuss digital service improvement and tax base expansion. [ET]
INTERNATIONAL – OVERVIEW & MARKET OUTLOOK
- Ramadan Begins Saudi Officials Sight Crescent Moon: Saudi officials have sighted the crescent moon, signaling the start of Ramadan for many Muslims worldwide. Fasting begins on Monday, with Muslims abstaining from food and water from sunrise to sunset. This year's observance is overshadowed by Israel's war on Gaza. Many Gulf Arab nations, Iraq, Syria, and Egypt will also begin fasting on Monday. [ET]
[ET]
[Al Jazeera]
[Reuters]
- Israeli Genocide: Iran's Foreign Ministry spokesman accuses the US, Europe, and international organizations of turning a blind eye to Israel's actions against Palestinian civilians in Gaza. He asserts that Israel is allowed to continue its "ethnic cleansing project" without consequences. [PressTV]
- EU Moves Closer to Ban on Forced Labor Products: The European Union progressed towards banning products from forced labor on Tuesday, as negotiators reached an agreement on a law aimed at blocking imports, particularly from China involving the Uyghur Muslim minority. The draft text of the law does not explicitly mention China but targets all products made from forced labor, including those within the EU. [BR]
- Aramco Eyes Expansion in China Amid Oil Demand: Saudi Aramco CEO Amin Nasser announced the company's interest in expanding investments in China due to robust oil demand. Aramco has already increased its presence in China through deals in refining and petrochemicals. Nasser's statement came after Aramco reported a 24.7% decrease in net profit to $121.3 billion due to lower oil prices. [BR]
- Record Ocean Heating Linked to El Ni?o & Climate Change: Record-breaking temperatures and the El Ni?o weather phenomenon have pushed ocean heating to a new peak in February, scientists report. Oceans, covering 70% of the planet, have absorbed 90% of excess heat from carbon pollution, crucial for maintaining Earth's habitability. Last year's ocean temperatures were unprecedented due to the combined effects of human-caused climate change and El Ni?o. [ET]
[
Phys.org
]
- UN Food Agency's Global Price Index Falls for 7th Month: The United Nations Food Agency's global price index dropped for the seventh consecutive month in February, primarily due to lower prices for major cereals. Despite the rising prices of sugar and meat, the Food and Agriculture Organization's index averaged 117.3 points, down from a revised 118.2 points in the previous month. [BR]
[ET]
[ET]
- Chinese Electric Vehicles Gain Global Popularity: Chinese electric vehicles are becoming increasingly popular globally for their affordability and attractive features, outpacing local competition in the US and Europe. [ET]
- Bitcoin Hits Record High, Surpasses $70,000 Briefly: Bitcoin surged to a record high on Friday, briefly surpassing $70,000, amid ongoing crypto enthusiasm. The rally was fueled by investor demand for new US spot exchange-traded crypto products and expectations of global interest rate reductions. Despite reaching $70,105 briefly, it quickly retreated and was last traded at $68,317.72. [BR]
- Four Missing Fishermen Found Dead, Search Continues for Others in Pakistani waters. [Dawn]
- PIA Privatization: Completing the privatization process of PIA, as committed to Prime Minister Shehbaz Sharif, involves 30 complex steps and could take between six months to a year. One critical step is obtaining a No-Objection Certificate (NOC) from approximately 35 lenders, making completion by June 2024 unlikely. [The News]
- SC: Former FATA Businesses Not Tax-Exempt by Location - The Supreme Court ruled that businesses in former FATA can't claim tax immunity solely based on location, stating taxpayers must prove income isn't from the area. [BR]
- FBR Tightens Sales Tax Rules, Uncovers Tax Evasion Scam: The FBR has tightened restrictions on sales taxpayers' activities to combat tax fraud, implementing amendments to the Sales Tax Rules of 2006. Additionally, the PCA South uncovered a Rs. 1.08 billion tax evasion scam in Bara Bazaar, KPK, involving the misuse of the Export Facilitation Scheme and FATA/PATA exemption. [BR]
[BR]
- Female Farmers - Overlooked but Essential: Female farmers, who make up 70% of the agricultural labor force, are crucial but often overlooked contributors to the sector. They face challenges including lack of formal recognition and are typically categorized as landowners, family farm workers, or landless laborers. [Dawn]
- Opinion: Tax Troubles of Salaried Class - “In the upcoming budget, this class should be relieved of paying high taxes. In this world, nothing can be said to be certain except death and taxes, a famous quote by Benjamin Franklin. This quote squarely applies to the registered taxpayers of Pakistan, particularly the salaried class.” - By Muzammil Hemani [ET]
