Magnetic Pole Shift Possibility, Poultry Prices, Wheat Targets, Depleting Fuel Supplies, IMF 9th Review, Balochistan Financial Crisis.

TOPLINE

• The rotation of Earth’s inner core may have paused and it could even go into reverse causing a global magnetic pole shift, new research suggests.
• An upward trend in poultry prices was witnessed, as poultry chicken meat is being sold at Rs 630 per kg and eggs at Rs 295 per dozen.
• The success rate of wheat crop sowing is estimated to be at 94% in the current fiscal year.
• Pakistan could face a crunch in fuel supplies in February as banks have stopped financing and facilitating payments for imports due to depleting forex reserves.
• Policies and steps required to complete IMF’s 9th review were discussed as the government raises LPG rate by 30% and finalizes hike in power rates. Moreover, the FBR announced that its net collection grew 22.6% in January on a Year on Year basis.
• Balochistan is facing a financial crisis for the last three months as it has not received its share of Rs 11 billion under the NFC award.

COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE

• Wheat Sowing Target: 94% is the estimated success of the wheat crop’s sowing target for the current fiscal year. [ET]
• Poultry Prices: An upward trend in poultry prices was witnessed here on Tuesday as currently, poultry chicken is being sold at Rs 370 per kg, chicken meat at Rs 630 per kg, boneless chicken at Rs 890 per kg and eggs at Rs 295 per dozen in the local market. The price of eggs is expected to increase gradually. [UP]
• Cotton Spot Rate: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Tuesday increased the spot rate by Rs 500 per maund and closed it at Rs 21,000 per maund. The rate of cotton in Sindh is in between Rs 19,000 to Rs 21,500 per maund. The rate of cotton in Punjab is in between Rs 19,000 to Rs 21,500 per maund. The rate of Phutti in Sindh is between Rs 6,500 to Rs 8,800 per 40 kg. The rate of Phutti in Punjab is between Rs 7,500 to Rs 10,500 per 40 kg. [BR]
• Gold Prices: The price of a single tola of 24-karat gold in Pakistan is Rs202,000 on Wednesday. The price of 10 grams of 24k gold was recorded at Rs173,190. Gold prices on the world market were quoted for $1902 per ounce. Silver prices dropped by Rs 50 to Rs 2250 per tola and Rs 42.88 to Rs 1929 per 10 grams. [BR] [DP] [DT] [Dunya]

AGRI-INPUTS, WEATHER, WATER & POWER

• First Payment from Reko Diq: Barrick Gold Corporation has made the first payment of $3 million (approximately Rs 750 million) to the government of Balochistan as part of the Reko Diq partnership. [BR] [The News] [Yahoo]
• Fuel Charges Adjustment: The National Electric Power Regulatory Authority (NEPRA) has so far worked out Rs 10.80/unit cut in power price for consumers of K-Electric (KE) and Rs 2.32/unit for consumers of power distribution companies (DISCOs) on account of fuel charges adjustment (FCA) for the month of December 2022. [ET] [The Nation] [PT]
• Fuel Shortages: Pakistan could face a crunch in fuel supplies in February as banks have stopped financing and facilitating payments for imports due to depleting foreign exchange reserves, traders and industry sources said. [BR] [ET]
• Post-Flood: Sindh Chief Secretary Dr Muhammad Sohail Rajput has said that the flood-affected people will start receiving money from Feb 8 for the reconstruction of their houses. [Dawn] [ET]
• Power Defaulting Consumers: 9,478 power connections of defaulting consumers and electricity thieves have been severed by HESCO. [ET]

AGRI UPDATES & PAKISTAN POLICY

• IMF Talks: The International Monetary Fund (IMF) on Tuesday asked Pakistan to withdraw untargeted subsidies, reduce circular debt, meet petroleum levy and Federal Board of Revenue (FBR) tax collection targets, it is learnt. The IMF has revised downward GDP growth rate projection for Pakistan from 3.5% to 2% for 2023 against 6% in 2022. Policies, steps required to complete 9th review discussed; govt raises LPG rate by 30%, finalizes hike in power rates. [BR] [BR] [Dawn]
• Financial Crisis in Balochistan: Balochistan is facing a financial crisis for the last three months as it has not received its share of Rs 11 billion under the National Finance Commission (NFC) award, the province’s spokesperson said on Tuesday. [Dawn]
• Corps Commanders Conference: Chief of Army Staff (COAS) General Syed Asim Munir directed all corps commanders to continue focus on anti-terrorism operations in coordination with intelligence and law enforcement agencies with renewed resolve “till the time we achieve sustainable peace”. [BR]
• Toshakhana Reference: A local court on Tuesday fixed February 7 for the indictment of former premier and Chairman Pakistan Tehreek-e-Insaf (PTI) Imran Khan in the Toshakhana reference. [BR] [ET]
• Government Debt: The government has borrowed $5.595 billion from multiple financing sources including $1.166 billion from the International Monetary Fund (IMF) during the first half (July-December) of 2022-23 compared to $9.432 billion borrowed during the same period of last fiscal year. [BR]
• Inflationary Pressure: Highlighting ‘immense pressures’ on the fiscal account owing to revenue collection challenges, heavy interest payments and rehabilitation spending, the government on Tuesday increased its inflation forecast to 26 % — more than double the budgeted 11.5 % target. [Dawn]
• PHL Debt into Public Debt: The government has prepared a plan to impose multiple surcharges of over Rs 4/kWh on consumers across the country including those of the KE and conversion of Power Holding Limited’s (PHL) debt of Rs 800 billion to public debt, sources close to the Finance Minister told Business Recorder. [BR]
• Tax Collection Target: The Federal Board of Revenue (FBR) on Tuesday announced that its net collection grew 22.6% to Rs 537 billion in January on a year-on-year basis, exceeding the Rs 533 billion target set for the month.However, the collection in the first seven months of 2022-23 fell short by Rs 214 billion or 5.12% to Rs 3.965 trillion against the target of Rs 4.179 trillion. The tax authorities raised Rs 3.965 trillion in July-January against Rs 3.367 trillion in the corresponding period of last year, a growth of 18%. [Dawn] [The News] [The Nation]

INTERNATIONAL – OVERVIEW & MARKET OUTLOOK

• Potential Magnetic Pole Shift: The rotation of Earth’s inner core may have paused and it could even go into reverse, new research suggests. The solid inner core is situated about 3,200 miles below the Earth’s crust and is separated from the semi-solid mantle by the liquid outer core, which allows the inner core to rotate at a different speed from the rotation of the Earth itself. [CNN] [New Atlas]
• Oil Prices: Oil prices were steady on Tuesday after dropping close to a three-week low, drawing support from a weakening dollar and on data showing demand for US crude and petroleum products rose in November. Although the front-month Brent futures contract was down 37 cents to $84.53 a barrel in low volumes, the more actively traded April Brent futures rose by 89 cents, or 1.1%, to $85.39 by 12:47 p.m. EST (1747 GMT). US WTI crude rose 92 cents, or 1.2%, to $78.82 a barrel. [BR]
• US Stock Market: US stocks rose on Tuesday as labour cost data indicated that the Federal Reserve’s aggressive approach to taming inflation was taking hold ahead of a decision by the central bank, while gains on the Dow were limited by weak earnings updates. [BR]
• Green Energy Investment: Investment in cleaner energy is on the verge of overtaking spending on fossil fuels for the first time ever after exceeding $1 trillion last year, a report on Tuesday said. Despite the milestone, spending on energy transition technology must immediately triple to meet the target of net-zero emissions by 2050 to combat climate change, according to research group BloombergNEF. [ET] [Economic Times]
• Russia-Ukraine War: Fierce fighting continues in eastern Ukraine, with Moscow and Kyiv battling for control of the city of Bakhmut and other towns in the Donetsk region. Russian airborne units have joined Wagner mercenaries in the fight for Bakhmut, a former Ukrainian military commander said. Biden rejects F-16s for Ukraine as Russia claims advances. Ukraine’s biggest allies have said they won’t send fighter jets to Kyiv, denying a key request from President Volodymyr Zelenskiy ahead of an expected escalation in fighting. While Kyiv’s allies have stepped up shipments of military hardware in recent weeks ahead of a spring offensive that officials fear Russia may be planning, the US, UK and Germany have all ruled out sending military aircraft. Meanwhile, Russia’s hunt for weapons to fire at Ukraine could give North Korea an economic boost. [BR] [Bloomberg] [CNN]

PAKISTAN - REMAINDERS

• Minister Hints at up to 8% Increase in Railways Fares. [ET] [PO] [The Nation] [Dunya]
• Death toll from Kohat boat tragedy climbs to 51. [Dawn] [ET] [PT]
• Automakers Suspend Production: Faced with a demand slump and raw material shortages amid unfavorable economic conditions, Indus Motor Company (IMC) on Tuesday announced a fourth production suspension from Feb 1-14. [Dawn] [ET]