- Steel bar prices in Pakistan have risen by Rs 4,000/tonne due to a bullish trend in global iron and steel scrap markets. The new rates range from Rs 250,000-262,000/tonne.
- The election organization will release the revised candidate list on Thursday, with final candidates and electoral symbols allotted on Friday and Saturday. In a legal win for the Pakistan Tehreek-e-Insaf (PTI), the Peshawar High Court reinstated the "bat" symbol.
- Workers' remittances to Pakistan saw a 5.4% growth in December 2023 compared to November 2023, reaching $2.381 billion.
- The government aims to raise Rs 400 billion in the next 3 months through Pakistan Stock Exchange's auction of GOP Ijara Sukuk.
- Pakistan's interim government aims to amend gas exploration and production policies to attract foreign firms and lessen reliance on expensive imported fuels, which have cost over $23 billion in less than a decade.
- South Africa will try to gain domestic support before a election by pursuing a landmark "genocide" case against Israel at the International Court of Justice (ICJ). US and UK forces intercepted over 20 drones and missiles launched by Yemen's Houthis over the Red Sea.
COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE
- Pakistan Steel Crisis: Prices Surge Rs 4,000/Ton Amid Global Trends - Steel bar prices in Pakistan have risen by Rs 4,000/tonne due to a bullish trend in global iron and steel scrap markets. The new rates range from Rs 250,000-262,000 per tonne, depending on quality. However, low demand has prevented some mills from implementing the necessary price hike, leading to closures and operational challenges in the steel industry, described as the worst crisis since 2008. [Dawn]
- Heimtextil 2024: At Heimtextil 2024, Pakistani textile firm Feroze 1888 Mills Limited showcased fabric made from bio-engineered yarn in collaboration with Danish company Pond. The event will continue till January 12th. A total of 273 Pakistani companies are participating in Heimtextil 2024. More than 272 companies from Pakistan are participating in Heimtextil 2024. [ET] [ARY]
- Pakistani Rupee's Resilient Rally: The Pakistani rupee strengthened by 9.22 paisa against the US dollar in the interbank session, closing at PKR 281.13 per USD compared to the previous session's PKR 281.22. This marks the sixth consecutive gain for the rupee after a 13-day upside streak against the dollar was broken. [MG]
- Raw Cotton Import: Rs 8.5 billion was the import value of raw cotton in Nov 2023, down 78% compared to Rs 38.9 billion in Nov 2022. [ET]
- Oilseeds Nuts & Kernels Export: Rs 12.4 billion was the export value of oilseeds, nuts and kernels in Nov 2023, up 210% compared to Rs 4 billion in Nov 2022, according to the PBS. [ET]
AGRI-INPUTS, WEATHER, WATER & POWER
- Fog Warning: Hazards Ahead in Punjab, KP, & Upper Sindh - The Meteorological Office issued a warning on Wednesday, indicating that the ongoing foggy conditions are expected to persist throughout the week. The alert covers the plains of Punjab, Khyber Pakhtunkhwa, and upper Sindh, cautioning citizens about the hazards of dense fog and advising them to exercise caution. [BR] [Dawn]
- NEPRA's Legal Action Against Fesco: Safety Neglect - Nepra plans to take legal action against Fesco, the Faisalabad Electric Supply Company, for neglecting safety codes, including pole grounding, leading to fatal accidents over three years. A show-cause notice will be issued for Fesco's failure to comply with safety standards despite assurances. [The News]
- Sazgar Engineering: Auto Rickshaw Sales Plunge - Sazgar Engineering Works Limited (SAZEW) experienced a significant drop in Auto Rickshaw sales, selling only 275 units in December 2023, down 64.42% from the previous month. Despite this, Auto Rickshaw production increased to 1,004 units. Sales of four-wheel off-road and passenger vehicles declined to 29 units, while production in this category grew by 23.98% to reach 424 units in December. [MG]
- Merit Packaging: Land and Factory Sale Approval - Merit Packaging Limited (PSX: MERIT) Board of Directors has approved the sale of its land and factory building in Karachi's Korangi Industrial Township. [MG]
- Post-Dam Challenges: Persistent Water Issues in Pakistan - Even with the completion of the Diamer Bhasha Dam in 2030, Pakistan's water issues are likely to persist due to the increasing water demands in agriculture from traditional farming practices. [BR]
- Interim Govt Targets Policy Amendments for Gas Sector Reform in Pakistan: Pakistan's interim government aims to amend gas exploration and production policies to attract foreign firms and lessen reliance on expensive imported fuels, which have cost over $23 billion in less than a decade. [ET]
AGRI UPDATES & PAKISTAN POLICY
- Election Update: PTI's Legal Victory, Symbol Reinstated - The election organization will release the revised candidate list on Thursday, with final candidates and electoral symbols allotted on Friday and Saturday. In a legal win for the Pakistan Tehreek-e-Insaf (PTI), the Peshawar High Court reinstated the "bat" symbol, overturning the Election Commission's decision to nullify the intra-party election and revoke the symbol. [BR] [The News] [BR] [Dawn]
- World Bank: Caution Amid Growth Projections for Pakistan - The World Bank has maintained Pakistan's GDP growth projections at 1.7% for FY24 and 2.4% for FY25. However, it cautions that the scheduled parliamentary elections in 2024, along with potential uncertainty and unrest, could negatively impact foreign investment and disrupt economic growth in several South Asian countries, including Pakistan. [Dawn] [The News]
- December Boost: Remittances to Pakistan Rise 5.4% - Workers' remittances to Pakistan saw a 5.4% growth in December 2023 compared to November 2023, reaching $2.381 billion, as reported by the State Bank of Pakistan (SBP). On a year-on-year basis, remittances also increased by 13.4% in December 2023 compared to the same period in 2022, when remittances amounted to $2.1 billion. [BR] [Dawn] [ET]
- Investor Optimism: T-Bill Yields Drop Amid Rate Cut Expectations - Yields on treasury bills dropped as investors anticipated an interest rate cut in the next year due to expected easing inflation. Despite high investor participation in the T-Bill auction, the government raised Rs 283 billion, exceeding the Rs 100 billion target. Yields fell by 44-59 basis points, with cutoff yields on three, six, and 12-month bonds at 20.99%, 20.96%, and 20.84%, respectively. [The News]
- Government Targets Rs 400 Billion: PSX Auction of GOP Ijara Sukuk - The government aims to raise Rs 400 billion in the next 3 months through Pakistan Stock Exchange's auction of GOP Ijara Sukuk. This includes Rs 100 billion from 1-year Islamic Bonds, Rs 150 billion from 3 and 5-year fixed-rate Islamic bonds, and another Rs 150 billion from floating-rate bonds with tenures of 3 and 5 years. [MG]
- Pre-Poll Uncertainty Continues: KSE-100 Falls Below 64,000 Points - Pre-poll uncertainty extended bearish sentiments in the stock market for the fifth consecutive session, pushing the benchmark KSE-100 index below 64,000 points. Topline Securities Ltd reported fluctuations, with the index hitting an intraday high of 64,551 before profit-taking reversed gains, resulting in an intraday low at 63,874 points. [Dawn]
- Opinion: Reassembling Pakistan - “Much has been said about “reimagining Pakistan” but it is important to understand that task comes the day after. For now, the focus needs to be on “reassembling Pakistan”. This task should not be underestimated. Those who think they can pull this off on their own are deeply mistaken. And the country is just emerging from the mistaken misadventures of those who think the country is a toy made of Lego and can be disassembled and reassembled in whatever shape they fancy, to pursue whatever goals their minds are seized with at that moment in time.” - By Khurram Husain [Dawn]
INTERNATIONAL – OVERVIEW & MARKET OUTLOOK
- Israeli Genocide Case: South Africa aims to enhance its international standing and gain domestic support before a crucial election by pursuing a landmark "genocide" case against Israel at the International Court of Justice (ICJ). Top lawyers from Pretoria are heading to The Hague for a legal confrontation, seeking an ICJ ruling to compel Israel to cease its military operations in Gaza. [BR] [ET]
- Houthi Attack Thwarted: US, UK Intercept 20+ Drones, Missiles - US and UK forces intercepted over 20 drones and missiles launched by Yemen's Houthis over the Red Sea in the "largest attack" by the rebels. The military intervention on Tuesday involved warships and planes, resulting in the destruction of 18 drones and three missiles. The Huthis claimed to have targeted a US ship with a "large number" of missiles and drones, without providing details on timing or location. [BR]
- UN Forecasts Global Unemployment Rise Amid Economic Concerns: The United Nations predicts a slight increase in the global unemployment rate in 2024, citing concerns about stagnant productivity, rising inequalities, and inflation affecting disposable income. The UN's labor agency attributes the economic recovery slowdown to ongoing geopolitical tensions and aggressive moves by central banks in response to persistent inflation from the COVID-19 pandemic. [BR]
- Gold Prices Hold Steady Ahead of US Inflation Data: $2,028.39 per Ounce - Gold prices held steady on Wednesday as traders watched US inflation data, a key factor for the Federal Reserve's interest rate outlook. Spot gold was at $2,028.39 per ounce, and US gold futures were unchanged at $2,033.30 per ounce at 9:45 am ET. Analysts suggest that if inflation data is softer than expected, the Federal Reserve may be inclined to cut rates, potentially pushing gold prices higher. [BR]
- Oil Prices Slide on Unexpected US Crude Stockpile Increase: Oil prices fell on Wednesday after a surprise jump in US crude stockpiles raised worries about demand in the largest oil market. Global benchmark Brent crude oil futures fell 21 cents, or 0.3%, to $77.38 a barrel. US West Texas Intermediate crude futures fell 10 cents to $72.14 a barrel. [BR]
- Karachi's Peoples Bus Service Expands: 80 New Buses, Including Electric. [Dawn]
- 10,000 e-Rozgar Centers Planned Nationwide for Freelancers: Minister Umar Saif. [Dawn]
- FBR Warns Non-Filers: SIM Cards and Utilities at Risk for the deadline of December 28, 2023. [BR]
- HBL PSL Broadcasting Rights Surge: 113% Increase in 2024, 45% for 2025. [BR]
- Opinion: Inflation & Devaluation - “IN December 2023, consumer prices were 29.7 percent higher compared to December a year earlier. Worse still, every month for more than a year our year-on-year inflation number has been above 20pc. There was however positive news in the recent inflation data too. Prices in December rose by only 0.8pc over November, which was the second smallest monthly increase in a year.” - By Miftah Ismail [Dawn]
