- The All Pakistan Textile Mills Association (APTMA) believes export proceeds of the textile sector will go down by up to $3 billion in the current fiscal year because of the government’s policies that have “strangulated” the textile sector.
- The PMD reports that the monsoon season has not yet subsided, and a fresh spell of heavy rain would hit the country in mid-August as two depressions have formed in the Arabian Sea, off the coast of Karachi which is to create a new storn.
- A temporary bailey bridge installed over the Uchar nullah stream near the Karakoram Highway in Upper Kohistan's Dasu area was swept away by flash floods triggered by torrential rainfall on Friday, disconnecting Gilgit-Baltistan from the rest of the country.
- In view of cheaper imports than local production, the government on Thursday increased by almost 25% the Dealer Transfer Price (DTP) of imported urea to Rs 2,150 per bag to ensure uniformity with locally manufactured fertilizer.
- NEPRA has increased the tariff of the KE by Rs 11.10 per unit for June 2022 under monthly Fuel Charges Adjustment (FCA) mechanism, with the additional amounts to be charged in the billing months of August and September.
- More than 70 economists and experts, including Nobel Laureate Joseph Stiglitz, called for Washington and other nations to release Afghanistan's central bank assets in a letter sent to U.S. President Joe Biden on Wednesday.
COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE
- Cotton Spot Rate: The Spot Rate of cotton increased by Rs 500 per maund on Thursday, and closed at Rs 17,500 per maund. The reason behind low trading volume is rain in the cotton belt of the country. The rate of cotton in Sindh is in between Rs 17,000 to Rs 18,000 per maund, and in Punjab is in between Rs 18,500 to Rs 19,000 per maund. The rate of Phutti in Sindh is between Rs 6,000 to Rs 7,300 per 40 kg, and in Punjab is between Rs 6,500 to Rs 10,000 per 40 kg. The rate of cotton in Balochistan is in between Rs 16,500 to Rs 17,500 per maund. [BR]
- PKR Appreciates: The rupee continued to gain for the ninth consecutive session on Friday, jumping by Rs 3.28 in the interbank market. According to the Forex Association of Pakistan (FAP), the PKR was being traded at Rs 215.6 by 12:30pm, having appreciated 1.49% from yesterday’s close. [Dawn] [BR] [Dawn]
- Textile Exports: The All Pakistan Textile Mills Association (APTMA) believes export proceeds of the textile sector will go down by up to $3 billion in the current fiscal year because of the government’s policies that have “strangulated” the largest dollar-earning sector of the economy. [Dawn]
- Rice Export: Rs 48.1 billion was the export value of rice in June 2022, up 66.04% compared to Rs 28.9 billion in June 2021. [ET]
- Date Harvest: 95% of date harvest has been destroyed in Khairpur and Sukkur districts due to excessive monsoons, said the Sindh Chamber of Agriculture. [ET]
AGRI-INPUTS, WEATHER, WATER & POWER
- Upcoming Monsoon Rains: The PMD reports that the monsoon season has not yet subsided, and a fresh spell of heavy rain would hit the country in mid-August. [Dawn]
- The SC on CBC & DHA: The Sindh High Court on Thursday came down hard on the Cantonment Board Clifton (CBC) and Defence Housing Authority (DHA) over the situation that surfaced in the areas under their jurisdiction after the recent rains. [Dawn]
- Kohistan Bridge Collapse: A temporary bailey bridge installed over the Uchar nullah stream near the Karakoram Highway in Upper Kohistan's Dasu area was swept away by flash floods triggered by torrential rainfall on Friday, disconnecting Gilgit-Baltistan from the rest of the country. [Dawn] [The News] [Daily Times]
- Electricity Tariff Hike: The National Electric Power Regulatory Authority (NEPRA) has increased the tariff of the K-Electric (KE) by Rs 11.10 per unit for June 2022 under monthly Fuel Charges Adjustment (FCA) mechanism, with the additional amounts to be charged in the billing months of August and September. [BR] [Dawn] [ET]
- Power Shortfall Report: PM Demands Report on Delays in Power Projects as Power Shortfall Grows [Dawn] [The Nation]
- Imported Urea Price: In view of cheaper imports than local production, the government on Thursday increased by almost 25% the Dealer Transfer Price (DTP) of imported urea to Rs 2,150 per bag to ensure uniformity with locally manufactured fertilizer. [Dawn] [ET]
AGRI UPDATES & PAKISTAN POLICY
- Import of Petroleum Products: Pakistan State Oil (PSO) has received Rs 62 billion from the Finance Division and the Power Division for confirmation of letters of credit (LCs) to import petroleum products. [BR]
- PTI Admits to Shahbaz Gill’s ‘blunder’: While the senior leadership of the PTI stopped short of condemning outright the controversial statement made by Dr Shahbaz Gill on a TV channel on Aug 8, the party has conceded that he could have chosen better words, or not said what he did. [Dawn] [ET]
- NTDC Seeks Financing: National Transmission and Despatch Company (NTDC) has sought additional financing of $35 million for additional activities of the “challenging” Central Asia- South Asian Electricity Transmission and Trade Project (CASA-1000). [BR]
- Japanese Investments: A delegation of Japanese investors met with Prime Minister Shehbaz Sharif on Thursday and expressed interest in investing $1 billion in various sectors of the economy. [BR]
- PSO Loan: The Economic Coordination Committee (ECC) of the Cabinet decided to issue a letter of comfort to the Pakistan State Oil (PSO) for securing a Rs 50 billion loan from a consortium of banks on an urgent basis to fulfil international and domestic payment obligations. [BR]
- Forex Reserves: The country’s foreign exchange reserves declined by over $2 billion during the first 5 weeks of this fiscal year due to massive external debt servicing. The reserves also reached below the $14 billion mark in the first week of August followed by continued debt payment. [BR] [ET]
- Supply of Medicines: The Healthcare sector sees over 40 drugs in short supply. Manufacturers say rising raw material costs render most drugs unfeasible to produce. Drap claims the pharma sector is gunning for across-the-board price rise. [Dawn]
- IMF Talks: The government has decided to introduce new taxation measures worth Rs15 billion in the next few days as part of the agreement with the International Monetary Fund (IMF) to revive a loan programme. [Dawn] [ET]
- Trade Deficit: President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Irfan Iqbal Sheikh has noted with profound concern that Pakistan’s regional trade deficit has widened further as its imports from 9 regional countries have increased by 28.84%; whereas, exports to the same states have increased only by 16.97%. [BR] [ET]
- CPEC & Chinese Auto Companies: “The automobile industry is an integral part for the development of highways, roads and other infrastructure and it has great significance in CPEC-related projects”, said Wang Zihai, President Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI). [ET]
- Agriculture University Staff Strike: The Joint Action Council (JAC) of Agriculture University Peshawar on Thursday announced a complete strike on August 12 against non-payment? of dues and an increase in the salaries as announced by the provincial government. [ET]
- Railway Policy Reforms: The Asian Development Bank (ADB) has identified six policy reforms to strengthen the railway system in Pakistan and across the Central Asian Regional Economic Cooperation (CAREC) region. [ET]
- SHC on Land-Grabbing Foreigners: The Sindh High Court (SHC) has rejected the report submitted by the Deputy Commissioner East, on a petition seeking retrieval of land belonging to a private society in Scheme 33, and directed to complete the operation against the foreign land grabbers within 45 days. [ET]
- Tax Collection from Sindh: The Sindh Excise and Taxation Department has released the details of the collection of taxes in July. In the first month of the current financial year, the provincial government collected more than Rs 8.9 billion worth of taxes and duties. [ET]
INTERNATIONAL – OVERVIEW & MARKET OUTLOOK
- Kabul Suicide Blast: A senior Taliban cleric, known for his fiery speeches against the Islamic State (IS) was killed on Thursday at his madrassa in the Afghan capital, in a suicide attack claimed by the jihadist group. [BR] [Dawn] [ET]
- Asset Freeze: More than 70 economists and experts, including Nobel Laureate Joseph Stiglitz, called for Washington and other nations to release Afghanistan's central bank assets in a letter sent to U.S. President Joe Biden on Wednesday. [Reuters]
- India Rice Exports: India’s rice export rates dipped this week on lower demand, while domestic prices in Bangladesh rose again after the government hiked fuel prices, adding to inflation concerns. [BR]
- Severe Polar Warming: The Arctic has warmed nearly 4 times faster than the rest of the planet over the last 40 years, according to research published on Thursday that suggests climate models are underestimating the rate of polar heating. [BR]
- Europe Wildfires: European nations sent firefighting teams to help France tackle a wildfire on Thursday, while forest blazes also raged in Spain and Portugal, and the head of the European Space Agency urged immediate action to combat climate change. [Dawn]
- Killing of Palestinian Children: The UN rights chief voiced an alarm on Thursday at the number of Palestinian children killed and wounded this month, and demanded those responsible be brought to account. Last week, the Israeli air and artillery strikes targeted positions of the? Islamic Jihad group. "Inflicting hurt on any child during the course of conflict is deeply disturbing," Michelle Bachelet, the United Nations high commissioner for human rights, said in a statement. [The News] [ET]
- Opinion: Pakistan at 75 - “In every civilized society, the higher judiciary works as a custodian of the constitution and ensures fundamental rights of the citizens. However, the prerequisite of judicial oversight for enforcement of fundamental rights, good governance and supremacy of the Constitution has remained compromised. The dream of implementing true rule of law has not materialized till today. Selective accountability and inconsistent interpretation of the Constitution and laws made thereunder continue to weaken governance, democratic values and rule of law in the country.” - By Huzaima Bukhari, Dr Ikramul Haq and Abdul Rauf Shakoori [BR]
- Opinion: Judicial Commission - “Disagreements have often occurred between the chief justice of India and the most senior judge of the court who, historically, have been unable to get along”. — Abhinav Chandrachud, Supreme Whispers. - By Faisal Siddiqi [Dawn]
