- The Senate Commerce Committee postponed a bill seeking to ban unprocessed salt exports, urging value addition. Pakistan exports $30-$50 million worth of raw salt annually.
- The demand for liquefied petroleum gas (LPG) is expected to increase from the current 4,500-5,000 tonnes per day to 15,000 tonnes per day in the coming years, noted ODGA Chairman Masroor Khan.
- NEPRA is taking legal action against Distribution Companies (Discos) and K-Electric for alleged overbilling and inefficiencies. NEPRA’s damning indictment reveals that all power distribution companies in the country are accused of overcharging customers by as much as 100%, citing malpractices and lack of accuracy in billing.
- In November 2023, Pakistan's Oil Marketing Companies reported a 9.0% month-on-month increase in sales to 1.4 million tons, driven by lower petrol and diesel prices and a lower base for Furnace Oil sales.
- Pakistan's pending first review under the $3 billion IMF program is not on the agenda for the Executive Board meetings scheduled until December 14. The benchmark on the Pakistan Stock Exchange surpassed 62,000 points. The surge was attributed to investors' "fear of missing out," as the PSX is projected to grow by 32% over the next 13 months, reaching 81,000 points in December 2024.
- At COP28 in Dubai, the host, the United Arab Emirates, pledged $270 billion in green finance by 2030 through its banks. Development banks committed to increasing funding, with agreements to suspend debt repayments in the event of a climate-related disaster.
COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE
- Salt Export Ban Delayed: The Senate Commerce Committee, chaired by Senator Zeeshan Khanzada, has postponed a bill seeking to ban unprocessed salt exports, urging stakeholders to offer suggestions for boosting domestic value addition. Currently, the country exports $30-$50 million worth of raw salt annually. [Dawn]
- Resurgence of Criminals in Katcha Area Despite Anti-Dacoit Operation: Despite a significant anti-dacoit operation and police claims of success, criminals in the Katcha area are reportedly resurging. In a recent incident near Nawazabad, a gang of around 30 armed dacoits torched a sugarcane field, issuing warnings to farmers against cooperating with the police through social media. [Dawn]
- Plastic Materials Export: Rs 8.28 billion was the export value of plastic materials in Oct 2023, up 77.74% compared to Rs 4.66 billion in Oct 2022. [ET]
- Aircraft, Ships & Boats Import: Rs 6.24 billion was the import value of aircraft, ships and boats in Oct 2023, up 3,138% from Rs 193 million in Oct 2022, according to the Pakistan Bureau of Statistics. [ET]
AGRI-INPUTS, WEATHER, WATER & POWER
- LPG Demand Soars: Expected to Triple in Coming Years - The demand for liquefied petroleum gas (LPG) is expected to increase from the current 4,500-5,000 tonnes per day to 15,000 tonnes per day in the coming years, according to the Chairman of the Oil and Gas Regulatory Authority (Ogra), Masroor Khan. He noted that 2-3 years ago, LPG demand was only 2,500 tonnes per day, highlighting the robust growth in this sector. He presented investment opportunities of up to a quarter billion USD for local investors in refrigerant terminals in Karachi. He also revealed plans to allow 2000 new LPG bowsers, with license issuance already underway. [Dawn]
- Karachi Protests: Industries Halt Production - Many units in Karachi, particularly in export-oriented sectors, reportedly suspended production operations on Monday to protest a significant hike in gas tariffs. However, some industries and textile units continued normal activities despite calls for shutdowns by trade and industrial associations. [Dawn] [ET]
- NEPRA Targets Discos: Legal Action Overbilling - NEPRA is taking legal action against Distribution Companies (Discos) and K-Electric for alleged overbilling and inefficiencies. The move, under NEPRA Fine Regulations, 2021, comes in response to complaints nationwide about excessive and incorrect bills issued to consumers during July and August 2023.? NEPRA’s damning indictment reveals that all power distribution companies in the country are accused of overcharging customers by as much as 100%, citing malpractices and lack of accuracy in billing. Not a single distribution company is found to be charging bills correctly. [Dawn] [BR]
- Pak Power Consumers Allegedly Overcharged Rs 675 Billion Yearly: Pakistani electricity consumers are allegedly overcharged by Punjab-based power distribution companies (DISCOs) by Rs 675 billion annually to fund power subsidies and inflate DISCOs' performance, according to Secretary Power Rashid Langrial. Out of Rs 900 billion in electricity subsidies, only Rs 327 billion is covered by the government from the budget, with the rest recovered from consumers. [ET]
- Pakistan's Oil Sales Jump 9% in November 2023: In November 2023, Pakistan's Oil Marketing Companies reported a 9.0% month-on-month increase in sales to 1.4 million tons, driven by lower petrol and diesel prices and a lower base for Furnace Oil sales. Average petrol prices decreased from Rs 303 to Rs 282 per liter, while diesel prices dropped from Rs 311 to Rs 300 per liter. [BR]
- Karachi's Worsening Air Quality Prompts Health Advisory: Health experts from Jinnah Sindh Medical University advised the public, especially children and the elderly, to limit outdoor activities and wear masks due to deteriorating air quality in Karachi. This guidance comes in response to recent reports ranking Karachi as the third-worst city globally in terms of air quality. [Dawn]
AGRI UPDATES & PAKISTAN POLICY
- ECP Funding Assurance: Military Aid Requested - The Finance Ministry assured the Election Commission of Pakistan (ECP) of releasing Rs 17 billion within a day or two for the upcoming February 8 polls. In a separate request, the ECP called for the deployment of the army and civil armed forces outside polling stations to address a shortfall of over 277,000 police personnel nationwide. [Dawn] [ET]
- IMF Review Delay: Pakistan Excluded from December Agenda - Pakistan's pending first review under the $3 billion IMF program is not on the agenda for the Executive Board meetings scheduled until December 14. The program, ending in April 2024 with $1.8 billion undisbursed, awaits approval for access to around $700 million. The next IMF meetings on December 4-14 do not include Pakistan on the agenda. [BR] [Dawn]
- Private Sector Economic Decline: Sharp Drop in Bank Borrowing - Over the last 18 months, the private sector's contribution to the economy, as indicated by bank borrowing, has sharply declined. Recent State Bank of Pakistan data for the first 4 months of FY24 reveal a lack of meaningful recovery, mirroring the trend observed in FY23 when private sector borrowing from banks dropped from Rs 1,329.7 billion in FY22 to Rs 208 billion. [Dawn]
- PSX Hits Record High: FOMO Drives Surge - The benchmark on the Pakistan Stock Exchange surpassed 62,000 points, reaching a new peak on Monday. The surge was attributed to investors' "fear of missing out," leading to broad buying across various sectors. Corrections, when observed, tend to be sector-specific rather than widespread. Notably, profits from the cement and banking sectors were redirected to energy stocks. The PSX is projected to grow by 32% over the next 13-months, reaching 81,000 points in December 2024. [Dawn] [ET]
- Pakistan Banks Criticized for Weak Commitment to Rights and Transparency: 5 major commercial banks in Pakistan show low commitments to climate change, human rights, gender equality, and labor rights in policy rankings. None of them discloses policies on nature and tax when lending money to firms. [Dawn]
- Imran Khan Indictment Set for December 12 in Cipher Trial: A special court overseeing the cipher trial of former Prime Minister Imran Khan has scheduled the indictment of Imran Khan and his aide Shah Mehmood Qureshi for alleged breaches of the official secrets law on December 12. Meanwhile, Imran Khan has requested the judge to summon the former army chief and a US diplomat to record their statements. [Dawn]
INTERNATIONAL – OVERVIEW & MARKET OUTLOOK
- IDF Deploys Tanks in Aggressive Move Against Hamas in Southern Gaza: The Israel Defense Forces deployed dozens of tanks into southern Gaza, describing it as an "aggressive" action against Hamas. Despite global concerns about civilian casualties, the IDF urged residents in the south to relocate via air-dropped leaflets. The incursion aimed to sever connections between central and southern Gaza. [BR] [Dawn] [CNN] [BBC] [WP]
- Red Sea Attacks Spike War Risk Insurance Premiums: Following the recent attacks on 3 vessels in the Red Sea, war risk insurance premiums for the area increased. The incidents add to a series of attacks in Middle Eastern waters since the beginning of the genocide from Israel on Gaza since October 7. [BR] [Reuters] [Reuters] [SPG]
- Pledges at COP28 Target Climate Finance Gap - At COP28 in Dubai, delegates accumulated money pledges to address the climate finance gap. The host, the United Arab Emirates, pledged $270 billion in green finance by 2030 through its banks. Development banks also committed to increasing funding, with agreements to suspend debt repayments in the event of a climate-related disaster. With a record 84,000 attendees, COP28 contrasts with the low-key first summit in 1995, which had less than 4,000 delegates focused on multilateral climate change cooperation. [Dawn] [France24] [Reuters] [AP] [Axios] [NRDC] [Dawn] [WCS] [COP28] [Reuters] [AP]
- Gold Retreats from Record High on Rate Cut Confidence: Gold, which reached a record high on Monday, experienced a slight decline amid increasing confidence that the US Federal Reserve would implement interest rate cuts early next year. As of 1203 GMT, spot gold slipped about 0.1% to $2,069.86 per ounce, while US gold futures also fell 0.1% to $2,088.90, yet remained well above the $2,000 mark. [BR] [Billionvault] [Gold Price] [Kitco]
- Bitcoin Surges Beyond $42,000 Amid Crypto Speculation: Bitcoin surged past $42,000, continuing its rally of more than 150% this year, fueled by frenzied speculation in cryptocurrencies. Investors are optimistic about the potential approval of a spot Bitcoin exchange-traded fund (ETF). [ET] [BBG] [CoinDesk] [NFT] [Yahoo Finance]
- Surging U.S. Oil Production: American oil production has rebounded to a record 13.2 million barrels per day, surpassing Russia and Saudi Arabia. This recovery, just 3 years after a pandemic-induced collapse, is impacting fuel prices and complicating efforts to reduce greenhouse gas emissions. The industry has added approximately 800,000 barrels/day since early 2022, with expectations of another 500,000 barrels/day next year, highlighting the economic benefits and environmental challenges. - By Clifford Krauss [NYT]
- Oil Prices Dip on OPEC+ Doubts, Demand Uncertainties: Oil prices fell on Monday amid skepticism about OPEC+ supply cuts and global fuel demand uncertainties. Despite this, concerns over supply disruptions from the Middle East conflict limited losses, with Brent crude down 55 cents (0.72%) at $78.33, and US West Texas Intermediate crude dropping 70 cents (0.93%) to $73.34. The palm oil contract for February on the Bursa Malaysia Derivatives Exchange also decreased by 0.83% to 3,842 ringgit ($824.46) by midday. [BR]
- CodeNinja Secures $1.6 Million Investment from sAi Venture Capital. [Dawn]
- FBR Targets Trade Fraud: Agreements on Electronic Data Interchange - The FBR has decided to ink agreements on Electronic Data Interchange with the United Arab Emirates, Singapore, Hong Kong and Afghanistan to control the menace of under-invoicing and over-invoicing. [BR]
- Pakistan: Emerging Digital Hub with 30,000 IT Companies, 75,000 Graduates Annually - Minister Saif. [ET]
- Opinion: From Forced Migration to Forced Repatriation - “The findings of the study reveal that the influx of Afghan refugees occurred in four different waves, closely linked to major developments in Afghanistan: the First Wave (1978-1981) marked the end of Daoud’s government and the Soviet invasion; the Second Wave (1990s) followed the withdrawal of the Soviet Union and the re-emergence of Mujahideen; the Third Wave (2001) coincided with the 9/11 attack and the US-led invasion; and the Fourth Wave (2021) accompanied the exit of the US and the fall of Kabul to the Taliban.” - By Ajmal Kakar [BR]
