- Textile exporters have indicated that if the approved regionally competitive power tariff of nine cents per kilowatt-hour (kWh) is discontinued, it will? lead to further decline in exports. Gwadar port will now facilitate the import of wheat into Pakistan.
- The prevailing monsoon weather system is expected to produce widespread rains across Sindh until Thursday night.
- Power Minister Khurram Dastgir said that the recently announced exemption for fuel adjustment charges (FAC) in August’s billing will only apply to consumers who use under 200 units of electricity.
- The IMF sees Pakistan’s economy slowing to around 3.5% due to weakening economic conditions and average inflation rate peaking to nearly 20% by the end of the current fiscal year. Pakistan’s current account deficit (CAD) shrank 45% month-on-month to $1.2 billion in July.
- Half of China’s vast territory is now experiencing drought, including parts of the frigid Tibetan Plateau, official data showed – with more high temperatures forecast Thursday for hundreds of millions of people enduring the country’s hottest summer on record.
COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE
- Textile Sector: Textile exporters have indicated that if the approved regionally competitive power tariff of nine cents per kilowatt-hour (kWh) is discontinued, it will? lead to further decline in textile as well as total national exports. [ET]
- Date Palm Cultivation: The Punjab agriculture department has established a modern nursery in Jhang district for the promotion of date palm cultivation in the low-rainfall areas of the province. [BR]
- Wheat Shifting: Secretary Food Punjab, Nadir Chatha, said that the food department has started shifting wheat to Multan in view of the threat to the wheat warehouses in flood areas of DG Khan. Thousands of tons of wheat have been shifted from the flood affected areas to safer places. [PT]
- Wheat Imports Via Gawadar: In a major development, wheat imports via Gwadar are being planned in collaboration with Gwadar Port Authority and National Food Security Division, promising to usher in a new era of business, commerce and trade vibrancy at Gwadar port. [Islamabad Post]
- Lumpy Skin Disease: The World Bank is expected to approve $30 million for Pakistan to launch a comprehensive programme to control the Lumpy Skin Disease (LSD) that invaded the country’s livestock a few months ago. [Dawn]
AGRI-INPUTS, WEATHER, WATER & POWER
- Torrential Rains and Flood Relief Efforts: The prevailing monsoon weather system is expected to produce widespread rains across Sindh until Thursday night, the Met Office said on Wednesday. The rains have taken the lives of more than 800 people, officials said. The Pakistan Civil Aviation Authority (PCAA) has closed Nawabshah airport till August 26, due to torrential rains. The Sindh provincial government on Wednesday established the Sindh Flood Relief Fund for the people affected by torrential rains and flash floods across the province. Schools, healthcare facilities were closed as south Punjab suffered widespread infrastructure damage. Residents of Qambar Shahdadkot district complain that relief camps are inadequate. [BR] [BR] [ET] [BR] [BR] [BR] [Dawn] [ET] [The News] [Dawn] [ET]
- Fuel Adjustment Charges from Electricity Bills: In the wake of daily protests by the general public and traders against inflated electricity bills, a local lawyer on Wednesday moved the Supreme Court seeking a direction to the federal government to either withdraw completely or at least reduce to some extent the Fuel Price Adjustment (FPA) charges and other surcharges from the utility bills. Power Minister Khurram Dastgir said that the recently announced exemption for fuel adjustment charges (FAC) in August’s billing will only apply to consumers who use under 200 units of electricity. [BR] [Dawn] [The News] [BR] [Dawn] [ET] [ET] [ET]
AGRI UPDATES & PAKISTAN POLICY
- Smart Agriculture Cooperation: Professor Dr. Muhammad Azam Khan, Chairman, Department of Horticulture, PMAS-Arid Agriculture University Rawalpindi has called for more smart agriculture cooperation with China. [The News]
- Qatar to Invest $3 Billion in Pakistan: The Qatar Investment Authority aims to invest $3 billion in Pakistan, Qatar’s Emiri Diwan said on Wednesday, lending support to the South Asian nation’s cash-strapped economy. PM, Qatari Emir agreed to bolster bilateral ties. [BR] [Dawn] [ET] [Al Jazeera]
- Current Account Deficit: Pakistan’s current account deficit (CAD) shrank 45% month-on-month to $1.2 billion in July, the State Bank of Pakistan (SBP) said on Wednesday. [Dawn] [PT] [The Nation]
- IMF Meeting: The National Tariff Commission (NTC) has cautioned the federal government of a possible fallout of imposing the highest-ever regulatory duties (RD) on goods imports ahead of the International Monetary Fund (IMF) executive board meeting, Dawn has learned from sources. [Dawn]
- Treasury Bills: The government raised Rs828 billion through an auction of the Market Treasury Bill (T-bill), with the yields on short-duration papers increasing slightly. The raised amount was higher than the pre-auction target of Rs750 billion. The cut-off yield on the three-year T-bill inched up by 5 basis points (bps) to 15.79 percent. The yield on the six-month paper increased by 5bps to 15.85 percent, while the cut-off yield on the six-month paper remained unchanged at 15.94 percent. [The News] [Dawn]
- Pak-Afghan Tensions: Tensions are high on the Pakistan-Afghan border near Kharlachi-Borki crossing point due to hotly contested ownership of two border posts with heavy deployment of forces by Pakistan and Afghanistan on their sides of the border. [BR]
- Inflation Peaking at 20%: The International Monetary Fund (IMF) sees Pakistan’s economy slowing to around 3.5% due to weakening economic conditions and average inflation rate peaking to nearly 20% by the end of the current fiscal year on the back of currency depreciation and higher commodity prices. [ET]
INTERNATIONAL – OVERVIEW & MARKET OUTLOOK
- Oil Ends Higher on US Response: Oil prices ended Wednesday higher after a volatile trading session on concerns that the United States will not consider additional concessions to Iran in its response to a draft agreement that would restore Tehran’s nuclear deal - and potentially the OPEC member’s crude exports. [BR] [ET]
- China Heatwave: Half of China’s vast territory is now experiencing drought, including parts of the frigid Tibetan Plateau, official data showed – with more high temperatures forecast Thursday for hundreds of millions of people enduring the country’s hottest summer on record. [BR] [Dawn]
- US Threatens Turkey with Sanctions Over Russia Ties: Turkey’s top business association has confirmed receiving a letter from the US Treasury warning of possible sanctions if it continues doing business with Russia. [BR] [Dawn]
- German Hydrogen-Powered Rail Fleet: Germany on Wednesday inaugurated a railway line powered entirely by hydrogen, a “world premiere” and a major step forward for green train transport despite nagging supply challenges. [Dawn] [E&T] [Gasworld] [The Week]
- Biden Orders Strikes Against ‘Iran-Backed Militias’ in Syria: President Joe Biden on Tuesday ordered airstrikes in eastern Syria targeting “facilities used by Iranian-backed militias'', a US military spokesman said. [Dawn]
- ‘Dry Port’ Complex Project in Mirpur Inaugurated: Azad Jammu and Kashmir President Barrister Sultan Mahmood and Prime Minister Sardar Tanveer Ilyas on Wednesday jointly performed the groundbreaking of the long awaited ‘dry port complex’ in Mirpur. [Dawn]
- Internet Outages: Internet users are expected to face more outages in the coming days as draining out of floodwater, which is causing cuts and damages to fibre-optic cables, continues in upper Sindh. [Dawn] [ET] [DT]
- Uptick in Dengue Cases: Punjab recorded the highest number of dengue patients in a day during the ongoing year on Wednesday with 81 fresh cases of the fever reported in 24 hours. [ET]
