- NEPRA has announced a significant Rs 4.13/unit fuel cost adjustment for government-owned distribution companies, affecting about Rs 35 billion and appearing in consumers' January bills for electricity consumed in November.
- Rs 60.2 billion was the import value of palm oil in Nov 2023, down 14.8% from Rs 70.7 billion in Nov 2022.
- The Ministry of Energy has sought ECC approval to raise the indigenous gas price for Fatima Fertilizer and Agritech to Rs 1,238.68/MMBtu, following OGRA's Estimated Revenue Requirement for FY 2023-24.
- Major hydropower projects are facing Rupee cover issues due to insufficient allocation in the 2023-24 PSDP. Dasu Hydropower Project (phase-1) is on track, with a planned $157 million disbursement by June 2024.
- The Pakistan Stock Exchange (PSX) ended in the red on Friday after the power sector regulator announced a Rs 4.13/unit fuel cost adjustment for November 2023.
- Oil prices fell 2% on Thursday, largely unwinding an earlier rally, as weekly gasoline and distillate stock builds overshadowed a larger-than-expected crude stock draw. The Federal Reserve meeting suggested inflation was under control and as Sec. of State Antony Blinken prepared to visit the Middle East.
COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE
- Pakistan Turns to Wheat Imports Amid Agricultural Challenges: Pakistan has become a wheat importer due to challenges in its agriculture sector, including poor market access, outdated farming practices, and climate change impacts. Like India, the majority of Pakistani farmers are smallholders, making it difficult to implement large-scale changes. Analyst and farmer Sabbah Uddin noted, "We have land. We do not have resources. And we do not have technology. We lack a coherent strategy." [MG]
- Palm Oil Import: Rs 60.2 billion was the import value of palm oil in Nov 2023, down 14.8% from Rs 70.7 billion in Nov 2022, according to the PBS. [ET]
- Leather Garments Export: Rs 5.68 billion was the export value of leather garments in Nov 2023, up 9.2% compared to Rs 5.19 billion in Nov 2022, according to the PBS. [ET]
AGRI-INPUTS, WEATHER, WATER & POWER
- Sindh's Deepening Gas Dilemma: SSGC halted gas supply to industries and CNG stations in Sindh due to a 400 mmcfd shortage. Despite industry closures reducing the shortage, a 15% unaccounted-for gas led to prioritizing domestic consumers and exempting fertilizer plants. SSGCL announced a 48-hour gas supply suspension to industries in Sindh from Jan 6 to Jan 8 due to low availability, affecting power units and RLNG-based CNG stations. [BR] [Dawn]
- Nepra Approves Rs 4.13 Fuel Cost Adjustment in Electricity Bills: NEPRA has announced a significant Rs 4.13 per unit fuel cost adjustment for government-owned distribution companies, affecting about Rs 35 billion and appearing in consumers' January bills for electricity consumed in November, excluding lifeline category and K-Electric users. [Dawn]
- Govt Establishes Telecom Appellate Tribunal to Address Industry Needs: The government has established the Telecommunication Appellate Tribunal, addressing the demand of IT, telecom, and internet service providers. The tribunal, with three members including a chairperson with high court judge or advocate experience of up to 15 years, was formed under the Telecommunication Appellate Tribunal Ordinance 2023. [Dawn] [ET] [The News] [DT] [ARY] [ProPakistani]
- Ministry Seeks ECC Nod for Gas Price Hike for Fatima Fertilizer & Agritech: The Ministry of Energy has sought ECC approval to raise the indigenous gas price for Fatima Fertilizer and Agritech to Rs 1,238.68/MMBtu, following OGRA's Estimated Revenue Requirement for FY 2023-24. This request aligns with an earlier ECC directive in March 2023 for subsidy-free gas supply to these plants until May 31, 2023. [BR] [BR]
- CDWP Approves Rs 45.69M Education Project, Refers Rs 358.81B Plans: The CDWP has approved a Rs45.69 million educational project and referred three projects worth Rs 358.81 billion to ECNEC for approval. Chaired by Planning Commission’s Deputy Chairman Jehanzeb Khan, the CDWP meeting covered projects in education, physical planning, and housing. [Dawn]
- Smog Crisis: Islamabad-Rawalpindi Air Quality Hits Hazardous Levels - The Rawalpindi Anti-Smog Squad's inability to control smog and implement eco-friendly zigzag technology in 189 brick kilns has worsened pollution levels in Islamabad and Rawalpindi. The current air quality index in the twin cities has reached hazardous levels, highlighting a concerning trend of increasing air pollution. [ET]
AGRI UPDATES & PAKISTAN POLICY
- Chief Justice Isa Comments on Morality Clauses in Articles 62 & 63: Chief Justice Qazi Faez Isa highlighted that lawmakers imposed morality clauses in Articles 62 and 63, leading to public protests during the 2017 Election Act changes. He expressed regret over martial law amendments to Article 62(1)(f), made out of fear of someone extending their rule for 25 years, emphasizing the lack of debate. [BR] [Dawn]
- PTI Appeals Supreme Court Over Symbol Controversy: PTI has appealed to the Supreme Court after the Peshawar High Court stripped them of their electoral symbol, the 'bat.' The petition seeks to overturn the PHC's decision, which upheld the ECP's revocation over intra-party election discrepancies. Initially approaching the PHC, the party had its symbol restored on Dec 26 by a single-member bench. [Dawn]
- SBP's Forex Reserves Surge $1.3B in 2 Weeks: The State Bank of Pakistan's foreign exchange reserves surged by $1.3 billion in a two-week period, attributed to official inflows from international financial institutions. The increase, with inflows of $852 million by December 22, 2023, and $464 million by December 29, 2023, totaled $1.316 billion during the mentioned period. [BR]
- Hydropower Projects Face Rupee Cover Shortfall: Dasu Phase-1 Advances - Major hydropower projects are facing Rupee cover issues due to insufficient allocation in the 2023-24 PSDP. Dasu Hydropower Project (phase-1) is on track, with a planned $157 million disbursement by June 2024, according to Chairman Wapda. Despite challenges, the 132-kV line construction is progressing well and expected to finish by March 31, 2024, without additional delays. [BR]
- PSX Falls Amidst Fuel Cost Adjustment & Tariff Hike Concerns: The Pakistan Stock Exchange (PSX) ended in the red on Friday after the power sector regulator announced a Rs 4.13 per unit fuel cost adjustment for November 2023. Despite an initially positive start, concerns about an industrial tariff hike led to widespread selling, resulting in significant intraday swings for the benchmark index. [Dawn]
- PTCL Renews Partnership with TPL Trakker for M2M & ICT Services: PTCL Group, Pakistan's largest telecom and ICT services provider, has renewed its partnership with TPL Trakker for continued provision of machine-to-machine (M2M) and ICT services. The agreement was signed by Zarrar Hasham Khan, Group Chief Business Solutions Officer of PTCL & Ufone 4G, and Rao Salman, CEO of TPL Trakker. [BR] [Dawn] [PO] [The News] [PTCL]
INTERNATIONAL – OVERVIEW & MARKET OUTLOOK
- Israeli Genocide: 32 Dead in Khan Younis, Operations to Continue - Israeli attacks in Gaza have killed at least 32 in Khan Younis and five in Rafah. The Defense Minister states operations in southern Gaza, including bombings of refugee camps, will persist. In the past 24 hours, 125 were killed and 318 injured, with the overall toll since October 7 at 22,438 killed and 57,614 wounded, including a revised death toll of 1,139 from the October 7 attack on Israel. [ET] [Al Jazeera] [Al Jazeera] [France 24] [The Guardian] [AP]
- Germany's 2023 Car Sales Rise 7.3%, Petrol Vehicles Lead Growth: New car sales in Germany for 2023 increased by 7.3% compared to the previous year, totaling 2.8 million vehicles, according to official data from the KBA federal transport authority. Despite the overall growth, the end of government subsidy programs led to a decline in electric vehicle sales, with petrol vehicles experiencing the most significant increase at 13.3%, reaching 979,000 units. [BR] [Barrons] [Economic Times] [SSRN]
- Judge Unseals Epstein Documents Involving Clinton & Trump: A New York judge has begun unsealing documents related to Jeffrey Epstein, including former U.S. presidents Bill Clinton and Donald Trump. Both Clinton and Trump, mentioned in the documents, have not been accused of any wrongdoing in connection with Epstein's case. [Dawn] [USA Today] [Time] [Independent] [CBS] [CNN] [AP]
- Chinese Stocks Dip Despite Positive Services Survey: Chinese stocks, led by liquor companies, fell on Thursday amid investor worries about macroeconomic factors, despite a positive survey showing a five-month high in services activity. The CSI 300 Index dropped 0.9%, Shanghai Composite lost 0.4%, and Hong Kong's Hang Seng Index remained flat. [BR] [BBG] [BBG] [Yahoo] [China Daily]
- Oil Prices Retreat Amid Stock Build-Up: Oil prices edged higher on Friday after minutes from a Federal Reserve meeting suggested inflation was under control and as U.S. Secretary of State Antony Blinken prepared to visit the Middle East to prevent escalation in the Israel-Gaza conflict. Oil prices fell 2% on Thursday, largely unwinding an earlier rally, as massive weekly gasoline and distillate stock builds overshadowed a larger-than-expected crude stock draw. Brent crude fell by $1.57, or 2%, to $79.01 a barrel by 11:23 a.m. EDT, after earlier rising over $1. US West Texas Intermediate crude futures fell $1.47, or 2%, to $73.57. [BR] [ET] [CNBC] [CNBC] [Reuters] [Yahoo]
- Opinion: 20 Things That Happened for the First Time in 2023 Read about a series of 20 surprising and serious events and trends that were unprecedented until now. - By Tricia Tisak [NYT]
- Positive Shift: Private Sector Borrows Rs 98.73B, Indicates Economic Upturn. [Dawn]
- Islamic Banking in Pakistan Surges 22% to Rs 8.417 Trillion in Q3 2023. [The News]
