PSMA Sugar Exports, Pulses Prices, FBR Income Tax, Govt Debt, Pak Climate Change Losses, US & UK Rate Cuts.

TOPLINE

• The Pakistan Sugar Mills Association (PSMA) has requested approval to export additional sugar, citing a 1.08 million-ton surplus. The government, however, stated it won't consider new exports until the current quota of 790,000 tons is fulfilled.
• The prices of pulses in Pakistan have dropped in the wholesale market, following a global price decline of over $100 per ton. This reduction, from $860 to under $750/ton, provides relief to consumers who have faced high inflation.
• FBR's income tax collection under Collection on Demand (CoD) fell by 21.5%, from Rs 162 billion to Rs 127 billion in 2023-24, underscoring the need for better collection of outstanding demands. However, advance tax collection surged by 57%, reaching Rs 1,530 billion, and tax exemptions cost Pakistan Rs 3.8 trillion.
• The government plans to raise Rs 8.7 trillion in new domestic debt from banks by January 2025, with Rs 6.85 trillion allocated to repay maturing obligations. Rs 5.5 trillion will be raised through short-term Treasury bills, while Rs 3.2 trillion will come from longer-term PIBs, with the government also repaying Rs 129 billion in maturing PIBs.
• Pakistan has faced a $100 billion loss over the last two decades due to climate change, a figure comparable to its total external debt of $130 billion since its creation.
• The American Federal Reserve cut interest rates to 4.50%-4.75% as inflation nears its 2% target and the job market softens, with a unanimous decision following a two-day meeting. Similarly, the Bank of England lowered its rate to 4.75%, its second cut since August, as UK inflation dropped to a three-year low of 1.7%.

AGRI-UPDATES - COMMODITIES, POLICY & DEVELOPMENTS

• Daily Rates: Find the following rates on the hyperlinked titles: [Shipping Intelligence], [Pakistan Stock Exchange], [Kibor International Kibor Rates], [BRIndex100 & BR Sectoral Indices], [Activities of Karachi Port Trust, Port Qasim]
• PSMA Seeks Approval to Export Surplus Sugar: The Pakistan Sugar Mills Association (PSMA) has requested approval to export additional sugar, citing a 1.08 million-ton surplus. The government, however, stated it won't consider new exports until the current quota of 790,000 tons is fulfilled. PSMA also proposed facilitating exports to China, which has a high demand. [BR] [Dawn] [ET]
• Regional Cotton Price Variation: Cotton prices in Pakistan vary by region, with Sindh ranging from Rs 16,800-Rs 18,100/maund, Punjab from Rs 17,600-Rs 18,200, and Balochistan from Rs 17,500-Rs 17,700. Phutti prices also differ, with Sindh ranging from Rs 7,400-Rs 8,400/40 kg, Punjab from Rs 7,000-Rs 8,600, and Balochistan from Rs 7,600-Rs 9,000, while Balochi cotton is priced higher between Rs 18,500-Rs 18,800, and Primark cotton from Rs 19,000-Rs 19,900/maund. [BR]
• Pulses Prices Drop in Pakistan: The prices of pulses in Pakistan have dropped in the wholesale market, following a global price decline of over $100 per ton. This reduction, from $860 to under $750/ton, provides relief to consumers who have faced high inflation. Pulses remain an affordable source of protein and nutrients for millions in Pakistan. [ET]
• Gold Prices Drop Following Trump's Victory: Local gold prices dropped significantly on Thursday, with a decrease of Rs 4,630/10-gram and Rs 5,400/tola, following a $65/ounce fall in international prices after Donald Trump’s victory. The new prices are Rs 237,311/10-gram and Rs 276,800/tola, while the international price stands at $2,662/ounce, down from the previous high of $2,784. [Dawn]
• Urea Prices Set to Increase Due to IMF Agreement: Urea prices are expected to rise by at least Rs 100/bag due to the government's commitment to the IMF for a semi-annual gas tariff adjustment by February 2025. The IMF report revealed that the government agreed to implement tariff increases to meet revenue needs of Sui companies, following recent requests from SSGC and SNGPL for up to 50% gas price hikes. [Dawn]
• Pakistan Loses $20.5M Cigarette Order: Pakistan lost a $20.5 million cigarette export order to Sudan due to bureaucratic delays, despite support from the SIFC and Prime Minister's Office. The order was diverted to Bangladesh after anti-tobacco groups, citing the WHO’s FCTC, blocked it, highlighting the negative impact of advocacy groups' influence on economic growth. [ET]

ENERGY - WEATHER, WATER & POWER

• Lahore Faces Record Air Pollution, School Closures: Lahore's air pollution reached record levels, making it the world's most polluted city for 48 hours, with AQI exceeding 1,000, triggering school closures across 18 districts from November 7 to 17. Environmental experts warned of lethal smog, similar to the 1950s smog in London and Los Angeles, and urged the government to take action as nearly 26 million children are out of school due to hazardous air, marking the second school closure this year in response to pollution. [Dawn] [Dawn] [Dawn]
• SECL, IPPs Oppose Forced Contract Renegotiations: Sapphire Electric Company Ltd. (SECL) and other IPPs voiced concerns over forced contract renegotiations, offering to end capacity payments if terms are accepted. SECL’s CEO informed PM Shehbaz Sharif, opposing claims of mutual agreement by the Energy Task Force. Germany also raised concerns about a deal with Rousch Power. Talks are ongoing, with some IPPs resisting Rs 55 billion in repayment demands. [BR]
• Commerce Ministry Urges Reversal of CPP Gas Cut: The Commerce Ministry has urged the Prime Minister to reverse the decision to cut gas supply to Captive Power Plants (CPPs) from January 2025, citing concerns over negative impacts on exporters and global buyer confidence. CPPs were crucial in managing energy shortages, and the government had previously offered competitive gas tariffs to boost export sector competitiveness. [BR] [ET]
• Nepra Questions K-Electric's Rs68B Write-Off Claims: Nepra has raised concerns over K-Electric’s Rs 68 billion write-off claims from FY 2017 to FY 2023. A public hearing is scheduled for November 21, 2024, where consumer representatives will provide input, and K-Electric's management will respond. This matter is part of discussions with Saudi’s Aljomaih Group, which recently visited Pakistan for investment talks. [BR]
• Pakistan Faces $100 Billion Loss Due to Climate Change: Pakistan has faced a $100 billion loss over the last two decades due to climate change, a figure comparable to its total external debt of $130 billion since its creation. This was highlighted during the SDPI's session on "Environmental Conflict and Social Dialogue in Pakistan" amid ongoing political and economic challenges. [BR]
• Kech Protest Demands Checkpoint Removal: A large protest in Kech on Thursday saw residents block the road to the Iran border, demanding the removal of a security checkpoint set up at a woman's house. Led by civil society leaders, the protesters called for the immediate removal of the post and warned of further protests across Makran if their demands were not addressed. [Dawn]
• DawnMedia, Unilever Partner for Climate Initiative: DawnMedia has partnered with Unilever Pakistan as a "knowledge partner" for the Breathe Pakistan climate initiative, launched in October to promote sustainable practices. The collaboration aims to mobilize citizens for environmental sustainability and highlights a joint commitment to climate advocacy and ecological preservation. [Dawn]
• Karachi Fisherfolk Protest Fossil Fuels Ahead of COP29: Karachi's fisherfolk protested against fossil fuel expansion on Thursday, ahead of COP29, as part of the "Global Day of Action Against Gas Expansion." The protest, involving placards like "End fossil fuels" and "Shift to renewable energy," aimed to urge world leaders at COP29 to reconsider fossil fuel investments. Similar protests were held across Asia. [Dawn]

PAKISTAN - ECONOMICS, POLITICS & SECURITY

• Pakistan-United States Relations Focus: The Foreign Office emphasized that "non-interference" should be central to Pakistan-United States relations, expressing hope for stronger ties under the Trump administration. Foreign Office Spokesperson Mumtaz Zahra Baloch noted that Pakistan looked forward to enhanced cooperation across all sectors, with President Zardari, Prime Minister Sharif, and Foreign Minister Dar already congratulating Trump on his election. [Dawn] [ET]
• FBR CoD Tax Collection Drops, Exemptions Cost Rs 3.8 Trillion: FBR's income tax collection under Collection on Demand (CoD) fell by 21.5%, from Rs 162 billion to Rs 127 billion in 2023-24, underscoring the need for better collection of outstanding demands. However, advance tax collection surged by 57%, reaching Rs 1,530 billion, and tax exemptions cost Pakistan Rs 3.8 trillion, benefiting specific sectors as per the 2023-24 report. [BR] [BR] [BR]
• Govt to Raise Rs 8.7 Trillion in Debt by Jan 2025: The government plans to raise Rs 8.7 trillion in new domestic debt from commercial banks by January 2025, with Rs 6.85 trillion allocated to repay maturing obligations. Rs 5.5 trillion will be raised through short-term Treasury bills, while Rs 3.2 trillion will come from longer-term Pakistan Investment Bonds, with the government also repaying Rs 129 billion in maturing PIBs. [ET]
• Opposition Slams Government’s Economic Plans: Opposition leader Omar Ayub Khan criticized the government for failing to meet IMF targets and planning a mini-budget, which he said would worsen economic conditions. He accused the government of relying on misleading data and failing to address rising prices and uncertainty. [Dawn]
• Foreign Banks Exit Pakistan: Foreign banks are withdrawing from Pakistan due to its declining credit profile, while local banks, strengthened post-privatization, are outcompeting them. Citi Pakistan, the only American bank remaining, focuses on attracting foreign investment and supporting Pakistani businesses' international expansion, especially in markets like Vietnam. [Dawn]
• FBR Sees 76% Surge in Tax Returns: The FBR received 5.215 million tax returns for the 2024 tax year by Nov 6, marking a 76% increase from the 2.959 million returns in the same period last year. The tax payment for these returns reached Rs132.259 billion, a 71.47% rise from last year's Rs77.132 billion, with the FBR also enrolling 660,000 new return filers between July 1 and Nov 6, 2024. [Dawn]
• Govt Plans Rs 8.7 Trillion Debt Raise: The government plans to raise Rs 8.7 trillion in new domestic debt by January 2025 for debt restructuring. Rs 6.85 trillion will be used to repay maturing debt, with Rs 5.5 trillion raised through short-term Treasury bills and Rs 3.2 trillion from long-term Pakistan Investment Bonds, alongside Rs 129 billion to repay maturing PIBs. [ET]
• KSE 100 Rebounds to Record High After Brief Dip: After a brief dip due to concerns over a potential US policy shift following Donald Trump's win, the KSE 100 index rebounded, closing at a record high of 92,520.49, up 499.05 points or 0.54%. This followed an intraday fluctuation, with the index dipping to 91,891.47, contrasting with global market gains driven by record highs in Wall Street, the US dollar, and Bitcoin. [Dawn]

INTERNATIONAL - MARKET, POLITICS, SECURITY & DEVELOPMENT

• Israeli Genocide: Israel's parliament has passed a law allowing the deportation of relatives of those accused of "terror" attacks, possibly to Gaza, if they knew of attack plans but did not try to prevent them. Far-right politicians believe the law will deter attacks from Palestinian citizens and East Jerusalem residents. Advocacy group Adalah criticized it as a "dangerous escalation," saying it enables collective punishment of Palestinians under the guise of counterterrorism. [Dawn] [Dawn]
• Fed & Bank of England Cut Rates as Inflation Eases: The American Federal Reserve cut interest rates to 4.50%-4.75% as inflation nears its 2% target and the job market softens, with a unanimous decision following a two-day meeting. Similarly, the Bank of England lowered its rate to 4.75%, its second cut since August, as UK inflation dropped to a three-year low of 1.7%, signaling further reductions as inflation eases globally. [BR] [The News]
• 2023 Poised as Hottest Year on Record: The EU climate monitor, Copernicus, reported that 2023 is almost certain to be the hottest year on record, surpassing 1.5°C above pre-industrial levels. This comes just before UN climate talks, highlighting the urgent need for emission cuts. October 2023, marked by severe weather like Spain’s floods and Hurricane Milton in the U.S., was the second hottest October recorded. [Dawn]
• Hurricane Rafael - Cuba: Authorities in Cuba say they are slowly restoring electricity to the eastern half of the island after the entire country lost power when Hurricane Rafael knocked out the electrical grid. Ten million people were left in the dark on Wednesday after the storm tore through the island with winds hitting 185 kilometers per hour (115 miles per hour), damaging homes, uprooting trees and toppling telephone poles. [Al Jazeera] [Aj Jazeera] [Al Jazeera]

OPINION(S) & REMAINDERS

• Finance Ministry Pushes for Cost-Cutting Compliance: The Ministry of Finance has directed all federal ministries, divisions, and their subordinate offices to follow a federal cabinet directive on eliminating contingency posts, as part of a cost-cutting effort. Despite the cabinet's August decision, only 15-16 out of over 40 ministries have started the process, prompting the finance ministry to issue a reminder and request compliance reports. [Dawn]
• Opinion: Cotton’s Top 5 Setbacks & The Smart Fixes - “The unjust application of the General Sales Tax (GST) represents a significant barrier to cotton production. In Pakistan, an 18% GST on imported cotton has been waived, while local production remains subject to the same tax. This disparity creates an uneven playing field for domestic cotton growers, negatively impacting their financial viability and exacerbating the decline in production.” - By Sajid Mahmood [BR]
• Opinion: Watering Cholistan - “THE first phase of the Cholistan Canal project has stirred fresh acrimony between Sindh and Punjab. Sindh’s government, political parties and civil society are denouncing the project. The criticism has found expression in protest rallies, sit-ins and seminars in the province. Sindh’s chief minister and irrigation minister have condemned the project in unambiguous terms.” - By Naseer Memon [Dawn]