Punjab Agri Tax Bill, Petrol Deregulation, Smog Health Issues, Neelum-Jhelum & Balochistan Dams, Non-Fillers Taxes, COP29.

TOPLINE

• The Punjab government passed the Punjab Agricultural Income Tax Bill 2024 in the provincial assembly, despite strong opposition and a walkout by its coalition partner, the Pakistan People’s Party (PPP). The bill, which includes amendments proposed by the opposition, was approved with a majority vote.
• The government has started steps to deregulate prices of four major petroleum products by setting up a working group to draft a concept paper within seven days. The Collectorate of Customs Enforcement seized 15,504 liters of smuggled Iranian diesel worth Rs 17.8 million from two boats off the coast.
• Around two (2) million people in Punjab sought medical attention for respiratory issues due to severe smog, with over 68,000 new cases reported in one day.
• The government has decided to repair the faulty portion of the Headrace Tunnel of the Neelum-Jhelum Hydropower Project at an estimated cost of Rs 23 billion, which will keep the plant offline for another eight months. The Balochistan Assembly's Public Accounts Committee found financial irregularities in dam projects, with only 11 out of 100 small dams completed.
• Ali Pervaiz Malik announced that tax notices will be sent to Pakistan's 5,000 wealthiest non-filers, with an expected Rs 7 billion in revenue. Dr. Gohar Ejaz urged the government to address Pakistan's tax shortfall by targeting "abnormal profits" in certain sectors. There is a Rs. 180 billion gap in taxes shortfall.
• Economists at UN talks in Baku emphasized that developing countries need at least $1 trillion per year by the end of the decade to address climate change. At COP29, a demonstration organized by the Climate Justice Coalition called for an energy embargo on Israel.

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]
• Cotton Prices Vary Across Pakistan's Regions: Cotton prices in Pakistan vary by region: in Sindh, cotton ranges from Rs 16,500-Rs 18,800/maund, in Punjab from Rs 17,700-Rs 18,300, and in Balochistan from Rs 17,500-Rs 17,700. Phutti prices range from Rs 7,400-Rs 8,800/40 kg in Sindh and Punjab, and from Rs 7,800-Rs 9,200 in Balochistan, with Balochi cotton priced between Rs 18,500 and Rs 18,800 and Primark cotton ranging from Rs 19,000-Rs 19,900/maund. [BR]
• Punjab Passes Agricultural Income Tax Bill: The Punjab government passed the Punjab Agricultural Income Tax Bill 2024 in the provincial assembly, despite strong opposition and a walkout by its coalition partner, the Pakistan People’s Party (PPP). The bill, which includes amendments proposed by the opposition, was approved with a majority vote, highlighting the government's commitment to agricultural income tax reforms. [BR] [Dawn] [ET] [The News]
• TDAP Pledges Support to Boost Rice Exports: The Trade Development Authority of Pakistan (TDAP) has pledged to support rice traders in boosting exports to earn more foreign exchange. In a meeting with the Rice Exporters Association of Pakistan (REAP), led by Senior Vice Chairman Muhammad Jawed Jillani, TDAP officials discussed strategies to overcome sector challenges and strengthen rice exports. [BR]
• Pakistan Launches Climate Finance Strategy at COP29: Pakistan launched its National Climate Finance Strategy (NCFS) at COP29, aiming to secure funding for climate adaptation and mitigation. The strategy focuses on attracting international finance, strengthening domestic systems, and engaging the private sector, aligning with Pakistan's Paris Agreement commitments. [Dawn]
• Government Moves to Deregulate Petroleum Prices: The government has started steps to deregulate prices of four major petroleum products by setting up a working group to draft a concept paper within seven days. This group, comprising representatives from OGRA, the Petroleum Division, PSO, and the refinery sector, aims to shape future strategies for the downstream oil sector. [The News]
• Customs Seize 15,504 Liters of Smuggled Diesel: The Collectorate of Customs Enforcement seized 15,504 liters of smuggled Iranian diesel worth Rs 17.8 million from two boats off the coast, following a tip-off about the illegal shipment. The Marine section successfully intercepted the smuggling attempt, and a case has been registered for further investigation. [BR]

ENERGY - WEATHER, WATER & POWER

• Two Million in Punjab Affected by Smog-Related Illnesses: Around two million people in Punjab sought medical attention for respiratory issues due to severe smog, with over 68,000 new cases reported in one day. Lahore and Multan were the hardest hit, with Lahore topping global pollution charts with an AQI of 1,591, while Multan saw record AQI levels exceeding 2,000, and other cities like Rawalpindi also faced hazardous air quality. [Dawn] [Dawn] [ET]
• Communications Projects Delayed by Budget Shortfall: The Ministry of Communications informed a parliamentary panel that 115 ongoing projects face delays due to a major budget shortfall, with only Rs 161 billion allocated out of the Rs 650 billion required for these projects. The Minister emphasized that the NHA's annual revenue has risen from Rs 64 billion to Rs 110 billion, advocating for its reinvestment in infrastructure. [BR]
• Pakistan Seeks IMF Waiver on Gas Supply: Pakistan has urged the IMF to remove a $7 billion EFF programme condition requiring the disconnection of gas supplies to captive power plants (CPPs) starting January 2025, warning that this could lead to a Rs 400 billion revenue loss and worsen the gas sector's circular debt, currently at Rs 2,700 billion. Government officials emphasized that shifting the industrial sector to grid electricity could destabilize the gas sector financially. [The News]
• Govt to Repair Headrace Tunnel for Rs 23 Billion: The government has decided to repair the faulty portion of the Headrace Tunnel (HRT) of the Neelum-Jhelum Hydropower Project at an estimated cost of Rs 23 billion, which will keep the plant offline for another eight months. An international consultant revealed that reconstructing the entire HRT would cost over Rs 222 billion and could take several years to complete. [Dawn]
• Balochistan Committee Finds Irregularities in Dam Projects: The Balochistan Assembly's Public Accounts Committee found financial irregularities in dam projects, including one completed for Rs 18 billion instead of the planned Rs 9 billion. Only 11 out of 100 small dams were finished, and Rs 247 million in dues remain unpaid to the Lasbela Industrial Estate Development Authority. [Dawn]
• NEVP 2025-30 Proposes Tax Breaks for EV Imports: The draft National Electric Vehicle Policy (NEVP) 2025-30 proposes tax breaks for electric vehicle imports, including a 25% customs duty on CBU units until mid-2027, rising to 50% after. However, local manufacturers are concerned that these imports could hurt domestic production. [Dawn]
• Sazgar Approves Rs1.54B Land Acquisition: Sazgar Engineering Works Limited announced its board's approval to acquire approximately 140 kanals of land worth Rs 1.54 billion near its four-wheeler project to support future business needs. The company's CEO has been authorized to negotiate and complete all legal formalities for the purchase, as disclosed in a notice to the Pakistan Stock Exchange. [PT]

PAKISTAN - ECONOMICS, POLITICS & SECURITY

• Government Plans Tax Cuts on Salaried Class: Minister of State for Finance, Ali Pervaiz Malik, announced that the government plans to reduce taxes on the salaried class and withdraw taxes on milk if the FBR successfully recovers Rs 300-350 billion in tax evasion from the illicit cigarette trade. He emphasized that the Prime Minister's directive to the FBR aims to curb tax evasion within the tobacco sector to ease the tax burden on salaried individuals. [BR]
• PTI Plans Nationwide Protest on Nov 24: PTI is worried about sustaining Imran Khan’s call for a nationwide protest due to the strain from previous failed attempts. The party plans to gather in Islamabad on Nov 24, demanding the reversal of the 26th Amendment, the restoration of their mandate, and the release of PTI leaders. [Dawn]
• Supreme Court Reviews Pollution, Seeks Reports: The Supreme Court's constitutional bench, in a 110-minute session, focused on environmental pollution and discussed various pending matters. The bench, led by Justice Aminud Din Khan, requested reports from all four provinces on steps taken to combat environmental degradation and pollution. [Dawn]
• Bilawal Criticizes PML-N, Eyes Coalition Review: PPP Chairman Bilawal Bhutto-Zardari criticized the PML-N-led government, expressing frustration over unmet agreements and perceived disrespect towards his party, despite being in a coalition. He hinted at a potential review of the PPP's eight-month alliance with the government in an upcoming Central Executive Committee meeting, where party leaders will discuss future strategy. [Dawn] [ET]
• IMF & Pakistan Clash Over Energy Sector, Loan Concerns: The IMF and Pakistan are facing issues over the energy sector and concerns about potential defaults in public sector entities, casting doubt on the $7 billion loan program. The IMF also highlighted missed provincial surplus targets, mainly due to Punjab's overspending. [Dawn]
• Tax Notices to 5,000 Wealthiest Non-Filers: Ali Pervaiz Malik announced that tax notices will be sent to Pakistan's 5,000 wealthiest non-filers, with an expected Rs 7 billion in revenue. These individuals, each with an average net worth of Rs 5.4 million, were identified through an audit of 200,000 non-filers. [ET]
• Dr. Gohar Ejaz Criticizes Taxation Strategy: Former Caretaker Minister Dr. Gohar Ejaz urged the government to address Pakistan's tax shortfall by targeting "abnormal profits" in certain sectors, rather than taxing struggling consumers. He criticized the government's taxation approach, warning against filling the Rs 180 billion tax gap by further burdening the population. [The News]
• Banks Granted Relief from Tax on Borrowing Targets: A dozen banks in Pakistan have received temporary relief from the Islamabad High Court against a government tax on lenders for not meeting borrowing targets to the private sector. The court has barred the government from collecting taxes based on the advance-to-deposit ratio until it issues a final verdict, with the next hearing scheduled for December 3. [The News]
• Pakistan's FX Reserves Reach $11.26 Billion: Pakistan's central bank foreign exchange reserves reached a two-year high of $11.26 billion as of November 8, 2024, increasing by $84 million in the week. The rise is attributed to a reduced current account deficit, strong remittances, higher exports, and the IMF's first tranche, while the SBP's active dollar purchases helped boost reserves. [The News]

INTERNATIONAL - MARKET, POLITICS, SECURITY & DEVELOPMENT

• COP29 Protest Calls for Energy Embargo on Israel: At COP29, a demonstration organized by the Climate Justice Coalition called for an energy embargo on Israel, highlighting the link between climate justice and the ongoing conflict. Activists, though few due to UN restrictions, protested with signs condemning genocide and advocating for demilitarization and collective liberation. [Dawn]
• Economists Call for $1 Trillion Annual Climate Funding: Economists at UN talks in Baku emphasized that developing countries need at least $1 trillion per year by the end of the decade to address climate change. With COP29 focusing on finance, reaching an agreement on funding commitments from rich nations, lenders, and the private sector is expected to be challenging due to diplomatic tensions and pessimism surrounding global political shifts. [BR]
• Israeli Genocide: Israeli airstrikes on Damascus and surrounding areas killed 20 people, including Palestinian and Iran-backed fighters, and injured 21 others. These attacks, which have intensified during the ongoing Lebanon war, targeted the Mazzeh neighborhood and Qudsaya, with past strikes also blamed on Israel in these regions. [Dawn] [ET]
• UN Accuses Israel of Genocide in Gaza, World Bank Reports $5B Loss in Lebanon: A UN special committee accused Israel of genocide in Gaza, citing mass civilian casualties, starvation tactics, and hindrances to humanitarian aid, while condemning Israel's siege and attacks on civilians. Meanwhile, the World Bank reported over $5 billion in economic losses in Lebanon due to the ongoing conflict, with further structural damage, as Israel's air strikes and ground troops intensified after September 23 in response to Hezbollah’s actions amid the Gaza war. [Dawn] [ET]
• Iran Open to Nuclear Talks, Rejects External Pressure: Iran's Foreign Minister Abbas Araqchi stated that while Iran is open to resolving disputes over its nuclear program, it will not yield to external pressure. He emphasized that the European Union (EU) trio of France, Britain, and Germany, alongside the U.S., now hold the responsibility for advancing negotiations, following talks with IAEA chief Rafael Grossi in Tehran. [Dawn]
• U.S. Farmers' Shift to Cheaper Pesticides Hits Bayer's Profits: U.S. farmers, facing low incomes and falling grain prices, are turning to cheaper generic pesticides and fungicides, which could hurt agrochemical companies like Bayer. Bayer's shares dropped to a 20-year low after warning that weak agricultural markets and a struggling U.S. farm economy would likely pressure profits, with competitors like Syngenta, Corteva, and BASF also facing challenges. [SF]
• Trump Cabinet Picks Focus on Loyalty Over Expertise: Donald Trump's transition team drew attention on Thursday after revealing cabinet picks that prioritized loyalty over expertise. While focusing on foreign policy and national security choices, Trump is expected to soon select key figures for domestic roles, including Treasury, Commerce, Health, and Education secretaries. [Dawn]
• India Bans Construction in Delhi to Combat Pollution: India's government has imposed a ban on non-essential construction in New Delhi and urged residents to avoid burning coal for heating to tackle severe air pollution. The measures, including dust suppression on roads and online classes for primary schools, will take effect from Friday. [Dawn]

OPINION(S) & REMAINDERS

• Pakistan Fifth in Illegal Immigrants to Europe - NCHR: According to a report by the National Commission for Human Rights (NCHR), Pakistan now ranks fifth in the list of countries with the most illegal immigrants in Europe. The report highlighted that nearly 40% of Pakistanis are seeking to leave due to economic difficulties, political instability, unemployment, inflation, lack of educational opportunities, and terrorism. [ET]
• Bank Alfalah Halts Samba Bank Acquisition: Bank Alfalah Limited (BAFL) has withdrawn its intention to acquire 84.51% of Samba Bank Limited (SBL) from Saudi National Bank (SNB), after SNB terminated the sale process. BAFL had previously received in-principle approval from the State Bank of Pakistan (SBP) for due diligence, but the acquisition was halted following SNB's decision. [BR]
• Opinion: Climate-Smart Cities - “WE must recognise the importance of adapting cities to climate change and develop a roadmap to achieve it. The world is rapidly urbanizing because of the growing size and density of the urban population. Estimates show that some 4.4 billion people live in cities and this number is expected to double by 2050 when seven out of 10 people reside in cities.” - By Ajaz Ahmed [Dawn]
• Opinion: Climate Ambition Gap - “AS the world inches closer to catastrophe, all eyes are on the Conference of Parties (COP) taking place in Baku, Azerbaijan. The opening speeches from the COP28 UAE presidency, COP29 Azer presidency, and the United Nations Framework Convention on Climate Change (UNFCCC) executive secretary all made the links between climate action and finance needs. Climate finance was at the heart of the agenda, with parties eager to discuss means of implementation to support delivery of the Global Stock-take outcome.” - By Aisha Khan [Dawn]
• Opinion: The Dwindling Diversity of Life on Earth - “The ongoing stress placed on nature by human actions has undermined the biodiversity of our interdependent planet. The Earth does not belong to human beings alone, yet we continue acting as if nature and all other living creatures are here only for us to continue exploiting with reckless abandon. This callous attitude has ushered in the age of the Anthropocene, an epoch during which human activities have evidently begun to alter the planet's climate and all its interdependent ecosystems.” - By Syed Mohammad Ali [ET]