- The caretaker Punjab government announced decisions on wheat and sugarcane support prices, setting them at Rs 4,000 and Rs 400 per maund.
- The government has requested local refineries, through OGRA, to increase petroleum product production, especially diesel, due to heightened demand during the wheat sowing season. Diesel sales surged by 70% in the first week of November.
- Heavy rainfall in Upper Punjab and Khyber Pakhtunkhwa led to flooding and one fatality.
- Pakistan's gas and power regulators have raised natural gas prices from November 1, meeting an IMF condition. For protected consumers, the tariff remains unchanged, but fixed monthly charges have risen sharply from Rs 10 to Rs 400, leading to up to a 150% increase in their annual bill. NEPRA has announced a 40 paise per unit fuel cost adjustment for ex-Wapda distribution companies.
- The IMF is urging Pakistan to tax agriculture, real estate, and retail during the $3 billion loan agreement review. The Federal Board of Revenue shared a tax plan, and the IMF will suggest additional measures after review.
- Around 25,000 garment workers clashed with police in Bangladesh, leading to the closure of at least 100 factories, as protests rejected a government-offered pay raise. The government-appointed panel increased wages by 56.25 percent for the nation's four million garment factory workers, who are demanding a near-tripling of their monthly wage.
COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE
- Punjab's Agri Reforms: Support Price Boost: The caretaker Punjab government announced decisions on wheat and sugarcane support prices, setting them at Rs 4,000 and Rs 400 per maund, respectively, to ensure fair compensation for farmers' efforts. The meeting also approved a release policy for wheat, eliminating the quota system to streamline distribution and stabilize flour prices, with ambitious targets for wheat cultivation and production in Punjab outlined by Interim Provincial Agriculture Minister SM Tanveer. [BR] [Samaa]
- Punjab's Wheat Thrust: 16 Million Acres - Provincial Agriculture Minister SM Tanveer revealed that Punjab is dedicating 16 million acres to wheat cultivation, setting a support price of Rs 4,000 per 40-kg wheat. He urged farmers to maximize cultivation for profit and highlighted the government's efforts to protect farmers' interests through outreach programs and technical assistance. [The Nation]
- No Federal Plans: Private Sector Handles Wheat Imports - The federal government, as per Federal Secretary for National Food Security & Research Captain Muhammad Mahmood (Retd), has no plans to import wheat through the Trading Corporation of Pakistan (TCP). The private sector is handling wheat imports to meet domestic demand, and there is no intention to impose Regulatory Duty on private sector wheat imports, as confirmed during a meeting at the Department of Plant Protection in Karachi. [BR]
- Fueling Growth: Government Urges Diesel Production Boost - The government has requested local refineries, through OGRA, to increase petroleum product production, especially diesel, due to heightened demand during the wheat sowing season. Diesel sales surged by 70% in the first week of November, prompting the call to ensure a robust supply chain. Pakistan State Oil has arranged two 50,000-tonne diesel cargoes to meet the increased demand. [The News]
- Rupee Fluctuations Prompt Steel Price Increase: A reversal in the rupee-dollar exchange rate has led manufacturers to increase steel bar prices after a decline last month due to the rupee's appreciation. Steel bar prices had dropped to Rs 245,000 per tonne last month but are now between Rs 265,000 and Rs 268,000, according to Syed Wajid Bukhari, General Secretary of the Pakistan Association of Large Steel Producers, who expressed concern that rates could rise further if the dollar continues to appreciate. [Dawn]
- Dry Fruits Import: Rs 1.56 billion was the import value of dry fruits and nuts in Sept 20223, up 78% from Sept 2022. [ET]
AGRI-INPUTS, WEATHER, WATER & POWER
- Heavy Rainfall in Khyber Pakhtunkhwa Causes Flooding: Heavy rainfall in Upper Punjab and Khyber Pakhtunkhwa led to flooding, resulting in one fatality in Abbottabad. Two individuals were swept away in Havelian tehsil, with one being rescued and the other found dead. The upper parts of Hazara division experienced heavy rain, while Islamabad witnessed light to moderate rainfall with hailstorms, leading to a drop in temperatures. [Dawn] [ET]
- Gas Price Recovery: Federal Government's Urea Production Plan - The federal government has decided, as of November 1, 2023, to recover the difference between RLNG and Ogra-prescribed prices for local urea production gas from provinces. A reimbursement mechanism, managed by the Industries & Production, Petroleum, and Finance Divisions, will be established according to a proposal titled "measures to meet the requirement of urea fertilizer for Rabi season 2023-24." [BR] [BR]
- Gas Price Surge: Consumer Impact Unveiled - Pakistan's gas and power regulators have raised natural gas prices from November 1, meeting an IMF condition. For protected consumers, the tariff remains unchanged, but fixed monthly charges have risen sharply from Rs10 to Rs400, leading to up to a 150% increase in their annual bill. Non-protected consumers face increased charges in two slabs, and residential consumers not protected will experience significant gas rate hikes, ranging from 50% to 150%. [BR] [ET]
- Import Initiative Delay: Federal Government's Oil Policy Hurdle - The federal government's decision to allow oil product imports on foreign suppliers' accounts via customs bonded storage facilities is stalled due to delays in the notification of Standard Operating Procedures by the Federal Board of Revenue. This initiative, intended to diversify supply sources and encourage international investment in storage and trade of petroleum products, was initially directed by the Mian Shahbaz Sharif-led government in June. [BR]
- Nepra's Fuel Cost Adjustment: 40 Paise per Unit for September - Nepra has announced a 40 paise per unit fuel cost adjustment for ex-Wapda distribution company consumers, excluding Electric Vehicle Charging Stations and lifeline consumers, with a net financial impact of Rs 5.2 billion for electricity consumed in September. This adjustment, applying to various consumer categories, was lower than the 55 paise per unit initially requested by the Central Power Purchasing Agency to cover the actual fuel cost of Rs 7.62 per unit in September, compared to the reference cost of Rs 7.07 per unit. [Dawn]
- CASA-1000: Pakistan Explores Electricity Export Solutions - A delegation led by Pakistan's Energy Minister Muhammad Ali has gone to Bishkek, Kyrgyzstan, to explore options for utilizing the CASA-1000 project for electricity export, aiming to alleviate capacity payment challenges totaling Rs 2.1 trillion. The proposal suggests allowing power flow from October to April. Pakistan plans to export electricity to Afghanistan, Tajikistan, and Kyrgyzstan during winter months through the CASA-1000 transmission line once the project is implemented. [The News]
- Sino-Pak Agricultural Forum: Dr. Kauser Malik Stresses Collaboration - Dr. Kauser Malik, the Federal Minister for National Food Security and Research, emphasized the importance of Sino-Pak agricultural collaboration in addressing food security challenges. He made these remarks at the 4th Belt and Road Initiatives (BRI) Sino-Pak agricultural forum organized by the Institute of Horticultural Science at the University of Agriculture Faisalabad (UAF). Additionally, he chaired a farmer day event related to a wheat campaign arranged by the Directorate of Farms. [BR]
- Suzuki Plant Shutdown Extended to Address Parts Shortage: Due to an ongoing shortage of parts, Pak Suzuki Motor Company Ltd (PSMCL) has extended the shutdown of its four-wheeler plant from November 9 to November 14. The motorcycle plant, however, will remain operational during this period. [Dawn]
- Lahore's Changing Climate: Rising Smog Threat - In recent years, Lahore has seen a notable shift in climate patterns, particularly during winter when smog has become a recurring issue. Last year, the city ranked among the top 10 most polluted globally, raising concerns among climate activists and human rights advocates about the hazardous effects of smog on residents' health. [Dawn]
AGRI UPDATES & PAKISTAN POLICY
- Rana Sanaullah Calls for Talks Amid PTI's Charter of Demands: PML-N leader Rana Sanaullah expressed readiness for talks with non-riot-involved PTI leaders to aid economic recovery. The May 9 riots followed the arrest of ex-PM Imran Khan, leading to imprisonment of PTI members. PTI presented a 24-point Charter of Demand to the Election Commission, seeking fair elections and a level playing field. The presentation involved senior PTI leaders and legal representatives, including Barrister Gohar Ali and Dr Babar Awan, in a meeting with Chief Election Commissioner Sikandar Sultan Raja at the ECP Secretariat. [The News] [The News]
- IMF Urges Tax Expansion: Pakistan Loan Review Updates - The IMF is urging Pakistan to tax agriculture, real estate, and retail during the $3 billion loan agreement review. The Federal Board of Revenue shared a tax plan, and the IMF will suggest additional measures after review. Talks, aiming for a staff-level agreement under the $3 billion Standby Arrangement, are ongoing until November 15, led by Finance Minister Dr. Shamshad Akhtar and Mission Chief Nathan Porter. Officials ruled out an extension and will address the external financing gap after a successful review, including one-on-one meetings during the week. [The News] [BR] [Dawn] [The News]
- SBP Raises Rs 252.3 Billion in Successful PIB Auction: The State Bank of Pakistan raised Rs 252.3 billion through the sale of fixed-rate Pakistan Investment Bonds, surpassing the Rs 160 billion target. The successful auction included competitive bids for 3-year, 5-year, and 10-year bonds, along with non-competitive bids and short selling, totaling Rs 33.791 billion and Rs 6.25 billion, respectively. No bids were received for 15, 20, and 30-year PIBs, and the cut-off yields for the 3-year, 5-year, and 10-year bonds were 17.39%, 15.95%, and 15.1%, respectively. [MG]
- Security Concerns: UNHCR Visit Delayed, Afghan Deportation Plans - Amid a purported threat alert, a UNHCR team's visit to Khyber district is postponed. Pakistan announces plans to deport registered Afghan immigrants, citing concerns about militants using Afghanistan for terrorism. JUI-F chief Maulana Fazlur Rehman calls for a commission to address the refugee issue, emphasizing the need for collaborative decisions between Pakistan and Afghanistan. [Dawn]
INTERNATIONAL – OVERVIEW & MARKET OUTLOOK
- Humanitarian Breaks in Gaza: Israel Agrees, Full Ceasefire Unlikely - Israel has agreed to daily four-hour military pauses in northern Gaza for humanitarian purposes, according to the White House. However, President Joe Biden clarified that there is no chance of a full ceasefire. French President Emmanuel Macron called for a ceasefire during a conference on humanitarian aid for Gaza, urging immediate efforts to protect civilians and work towards a humanitarian pause. [BR] [BR]
- US Strikes Iran-Backed Targets: US warplanes conducted a self-defense strike on an eastern Syria weapons storage facility used by Iran's Islamic Revolutionary Guard Corps and affiliated groups in response to attacks against American personnel, according to Defense Secretary Lloyd Austin. The precision strike, carried out by two US F-15s, was prompted by a series of attacks in Iraq and Syria by IRGC-Quds Force affiliates, with a clear message to Iranian leaders to instruct their proxies and militias to cease attacks. [Dawn] [NYT] [NBC] [CNN] [ABC] [AP]
- Blinken Condemns North Korea's Military Support for Russian Invasion: US Secretary of State Antony Blinken condemned North Korea for supplying arms to aid the Russian invasion of Ukraine during meetings with top officials in South Korea. The United States, South Korea, and Japan have criticized Pyongyang for supporting Russia's military campaign, with reports stating North Korea sent a million artillery rounds to Russia. [Dawn] [Barrons] [BBG] [France24] [VOA] [JT]
- Bangladesh Garment Workers Protest: Wage Dispute - Around 25,000 garment workers clashed with police in Bangladesh, leading to the closure of at least 100 factories, as protests rejected a government-offered pay raise. The government-appointed panel increased wages by 56.25 percent for the nation's four million garment factory workers, who are demanding a near-tripling of their monthly wage. The sector, vital to Bangladesh's economy, faces dire conditions for its predominantly female workforce, with monthly pay starting at 8,300 taka ($75). [BR] [Dawn] [ET]
- Kazakhstan to Supply Uranium to China in Long-Term Agreement: Kazakhstan, the world's leading uranium producer, has entered a long-term agreement to supply natural uranium concentrate to China. The deal was made between Kazakhstan's national atomic company, Kazatomprom, and China National Uranium Corporation Limited. The agreement aims to contribute to meeting China's increasing demand for clean, net-zero energy and strengthen the long-standing relationships between the two countries in the nuclear industry. [Dawn] [Barrons] [Al Arabiya]
- Indonesia Unveils Southeast Asia's Largest Floating Solar Farm: Indonesia inaugurated the Cirata floating solar farm, costing $100 million, as the largest in Southeast Asia, aiming to transition to green, renewable energy. Built on a 200-hectare reservoir in West Java, the solar farm is expected to generate enough electricity for 50,000 households, making it the third-largest in the world, according to President Joko Widodo. [Dawn] [Barrons] [Nikkei] [Reuters] [DS] [FT]
- Oil Prices Decline Amid Global Demand Concerns: Oil is set for a third weekly decline as concerns about global demand and the unwinding of the war-risk premium persist. Brent crude, the global benchmark, briefly exceeded $80 a barrel but is down around 5% for the week. West Texas Intermediate is close to $76. The decline was influenced by comments from Saudi Energy Minister Prince Abdulaziz bin Salman, who blamed speculators, echoing remarks from May when the kingdom reduced output. [ET] [BBG] [Reuters] [Dunya]
- Allama Iqbal's 146th Birth Anniversary Celebrated with Tributes as a National Holiday was observed. [BR]
- Opinion: The Sleeping Ummah 2.0. - “It is significant to note that it is not the Jews versus Muslims, it is the state of Israel that is responsible for this mass genocide and ethnic cleansing. The Jews have protested in favour of the Palestinians and their right of seeking statehood, from New York to Sydney. They have held marches and protests of meaning and value to the cause of Palestinians.” - By Sirajuddin Aziz [BR]
