- PM Shehbaz Sharif was briefed on a Rs 7.5 billion Ramadan Relief Package providing subsidies on 19 essential commodities. Sindh CM Syed Murad Ali Shah announced a Rs 22.5 billion Ramazan package to aid 60% of the population, with eligible families receiving Rs 5,000 cash each through banks and a crackdown on hoarders.
- Rs 4.6 billion was the raw cotton import value in Jan 2024, down 89.4% compared to Rs 43.2 billion in Jan 2023.
- Engro, Fatima and FFC are investing $300 million in a Gas Pressure Enhancement Facilities (PEF) project to ensure uninterrupted gas supply for urea production.
- The IMF is ready to send its mission to Pakistan after the formation of a new cabinet under the $3 billion Standby Arrangement program. The State Bank's foreign exchange reserves fell by $54 million to $7.9 billion as of March 1, while total liquid foreign reserves stood at $13.02 billion, with commercial banks holding $5.12 billion.
- Wall Street's main indexes climbed, with the Nasdaq leading, supported by chipmakers, while the S&P 500 hit a new intraday record high on expectations of a Fed interest rate cut in June. The European Central Bank (ECB) maintained interest rates unchanged, citing insufficient confidence in reaching the inflation goal.
- The return of La Ni?a may lower the risk of 2024 breaking last year's heat record, according to Europe's climate monitor. While global temperatures remain historically high, climatologists suggest that human-caused climate change predictions align with recent trends.
COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE
- PM & Sindh CM Roll Out Ramazan Relief Packages: PM Shehbaz Sharif was briefed on a Rs 7.5 billion Ramadan Relief Package providing subsidies on 19 essential commodities. Sindh CM Syed Murad Ali Shah announced a Rs 22.5 billion Ramazan package to aid 60% of the population, with eligible families receiving Rs 5,000 cash each through banks, and a crackdown on hoarders directed by the CM starting Friday. [BR]
[Dawn]
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[ET]
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[The Nation]
[Samaa TV]
- APTMA Southern Zone Opposes 223% Gas Tariff Hike: APTMA Southern Zone strongly opposes the 223% increase in gas tariff over the past year, stating it harms Pakistan's export-oriented textile industry. They urge the government to reverse the decision to ensure competitiveness in international markets amid continuous energy price hikes. [BR]
- Raw Cotton Import: Rs 4.6 billion was the import value of raw cotton in Jan 2024, down 89.4% compared to Rs 43.2 billion in Jan 2023, according to the Pakistan Bureau of Statistics. [ET]
AGRI-INPUTS, WEATHER, WATER & POWER
- Major Fertilizer Investment: Ensuring Gas Supply - Engro Fertilizers and other major fertilizer manufacturers are investing $300 million in a Gas Pressure Enhancement Facilities (PEF) project to ensure uninterrupted gas supply for urea production and safeguard Pakistan's food security. Engro Fertilizers alone is contributing over $100 million to the project, which is expected to be completed in 18 months. [BR]
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- Mediator Facilitating KE-Government Talks: Mediator Ashtar Ausaf Ali has begun mediating between K-Electric (KE) and government entities, addressing outstanding receivables, tariff subsidies, and payments as per a February 23, 2024, notification and Mediation Agreement. [BR]
- PM Forms Committee for DISCOs Transfer: Prime Minister Shehbaz Sharif established a committee, led by former petroleum minister Dr. Musadiq Malik, to transfer 10 power distribution companies (DISCOs) to provinces, diverging from previous plans favoring private sector involvement. This move aims to review the proposal of transferring DISCOs to provinces. [ET]
- Punjab Men Targeted in Sindh Honey Trap Kidnappings: Men from Punjab are still falling into honey traps set by gangs in Sindh's Katcha areas despite warnings. Saleem Abid Hashmi, a Rescue 1122 employee from Bahawalpur, was kidnapped for ransom by these gangs on Feb 15, demanding Rs 10 million for his release. His family registered a case with the police after receiving a video clip confirming his abduction. [Dawn]
- KPK Restores Free Healthcare for All: The Khyber Pakhtunkhwa government has decided to fully restore free healthcare for the entire population of the province under the Sehat Card Plus insurance scheme starting from Ramazan 1. The decision was made in a meeting chaired by Chief Minister Ali Amin Khan Gandapur and attended by key officials. [Dawn]
AGRI UPDATES & PAKISTAN POLICY
- IMF Mission to Pakistan: New Cabinet, $3 Billion Program - The IMF is ready to send its mission to Pakistan after the formation of a new cabinet under the $3 billion Standby Arrangement program. Julie Kozak, the Fund’s Communications Director, discussed Pakistan's financial needs for 2024, the size of the next IMF program, and the associated risks during a press briefing in Washington, DC. [The News]
[The News]
- PML-N Hosts Support Dinner - Before the March 9 presidential election, the ruling coalition, led by PML-N, showcased its unity in Islamabad as all allied parties, including MQM-P, pledged support for PPP's nominee Asif Ali Zardari during a dinner hosted by Prime Minister Shehbaz Sharif. [The News]
- Accelerating Privatization: Prime Minister Shehbaz Sharif directed the acceleration of privatization and urged urgent capacity-building measures during a high-level meeting in Islamabad. He also formed a committee to review proposals for power company transfer to provinces, with its findings to be submitted directly to him. [BR]
- Pakistan's Foreign Reserves Dip: Debt Repayments Cited - Pakistan's State Bank's foreign exchange reserves fell by $54 million to $7.9 billion as of March 1, while total liquid foreign reserves stood at $13.02 billion, with commercial banks holding $5.12 billion. The decrease in reserves was attributed to debt repayments, according to a statement by the central bank. Last week, reserves had declined by $63 million. [BR]
- Pakistan's Trade Deficit with Middle East Shrinks: Pakistan's trade deficit with the Middle East decreased by 41.31% to $5.674 billion in the first seven months of the fiscal year, driven by reduced imports of petroleum products. Exports to the region increased by 36.18% to $1.769 billion, while imports dropped by 31.69% to $7.443 billion, according to State Bank of Pakistan data. [Dawn]
- Pakistan Banking Sector Outlook Upgraded by Moody's: Moody's upgraded Pakistan's banking sector outlook to 'stable' from 'negative', citing improved macroeconomic conditions. Despite forecasted modest economic growth in 2024, challenges such as high-interest rates and inflation may restrict private-sector spending and investment, with banks largely financing government deficits, limiting lending to the real economy. [BR]
INTERNATIONAL – OVERVIEW & MARKET OUTLOOK
- Israeli Genocide & Talks: Israeli strikes in Khan Yunis have resulted in the deaths of 83 people, with 47 bodies of Palestinians returned. Hamas' delegation left Cairo amid ceasefire negotiations, mediated by Qatar and Egypt, aiming for a ceasefire before Ramadan next week. Despite four days of talks, progress is stalled on key issues, with both sides blaming each other. [Dawn]
- Biden Directs US Military for Gaza Port for Aid: President Joe Biden will announce to Congress that he has directed the US military to establish a port in Gaza to increase humanitarian aid access, senior US officials revealed. This initiative will not involve US personnel on the ground in Gaza; instead, military personnel will operate offshore while other allies are engaged in the effort, officials clarified. [Dawn]
- Europe Keeps Rates Unchanged Due to Inflation: The European Central Bank (ECB) maintained interest rates unchanged, citing insufficient confidence in reaching the inflation goal, according to President Christine Lagarde. The governing council held the benchmark deposit rate at a record low of four percent for the fourth consecutive meeting, despite noted progress towards the inflation target. [BR]
- China's FM Criticizes US, Urges Mutual Respect: China's Foreign Minister Wang Yi accused the US of clinging to wrong perceptions and failing to fulfill promises made since the Biden-Xi meeting. Wang emphasized the need for mutual respect and recognition of differences for continued exchanges between the two countries. He noted that the US continues to hold misconceptions about China, with unfulfilled commitments. [ET]
[The News]
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- Wall Street Rises on Fed Rate Cut Expectations: Wall Street's main indexes climbed, with the Nasdaq leading, supported by chipmakers, while the S&P 500 hit a new intraday record high on expectations of a Fed interest rate cut in June. The Philadelphia Semiconductor index surged to a new high, led by Qualcomm, while technology stocks, including Meta and Nvidia, advanced. [BR]
- Sweden Joins NATO, Ending Two Centuries of Neutrality: Sweden officially joined NATO on Thursday, ending two centuries of non-alignment and concluding two years of diplomatic efforts. Swedish Prime Minister Ulf Kristersson visited Washington, where Secretary of State Antony Blinken received the ratification documents after securing approval from all NATO members. [Dawn]
- La Ni?a Return May Lower 2024 Heat Records: The return of La Ni?a may lower the risk of 2024 breaking last year's heat record, according to Europe's climate monitor. While global temperatures remain historically high, climatologists suggest that human-caused climate change predictions align with recent trends, although further consideration may be needed, says Carlo Buontempo of the Copernicus Climate Change Service (C3S). [Dawn]
- China Solar Dominance: Beijing is set to further increase its manufacturing and installation of solar panels as it seeks to master global markets and wean itself from imports. China unleashed the full might of its solar energy industry last year. It installed more solar panels than the United States has in its history. It cut the wholesale price of panels it sells by nearly half. And its exports of fully assembled solar panels climbed 38 percent while its exports of key components almost doubled. Get ready for an even bigger display of China’s solar energy dominance. - By Keith Bradsher [NYT]
- Pakistani Companies Ink Deals at LEAP 2024 in Riyadh: Leading Pakistani companies signed multiple deals with global counterparts at the LEAP 2024 tech event in Riyadh, Saudi Arabia. [ET]
- SECP Amends Rules for Distressed Entity Rehabilitation: SECP has amended Corporate Restructuring Companies Rules, 2019, in collaboration with the federal government, State Bank of Pakistan, and International Finance Corporation to enhance distressed entities' rehabilitation processes and provide greater opportunities for restructuring. [BR]
- Sanjrani Seeks Extension Amid Senate Seat Controversy: Sadiq Sanjrani, no longer a Senate member, seeks an extension until his successor is elected despite controversy. Although he won a seat in the Balochistan Assembly, he hasn't taken the oath. The ECP has asked the Senate Secretariat to ensure his resignation after winning the Balochistan Assembly election. [Dawn]
- Justice Naqvi Faces Removal Over Misconduct: The Supreme Judicial Council found Justice Sayyed Mazahar Ali Akbar Naqvi guilty of misconduct and recommended his removal from office. Justice Naqvi resigned before the proceedings began, but the council proceeded with the hearings. Chief Justice Qazi Faez Isa stressed the importance of maintaining the judiciary's accountability. [Dawn]
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