Sugar Exp to Tajikistan, NDMA Issues Flood Warning, Fuel Cuts, Insecticide & Palm Oil Imports, Social Media & Internet Disruptions, Gaza Ceasefire Tal

TOPLINE

• Pakistan has agreed to export 40,000 tons of refined sugar to Tajikistan at preferential prices under a government-to-government arrangement, pending formal approval from the Economic Coordination Committee (ECC) and the federal cabinet.
• The NDMA has issued a flash and urban flood warning, noting at least 179 deaths and 325 injuries from ongoing monsoon rains since July 1, 2024.
• The government has reduced petrol prices by Rs 8.47 per liter, bringing it to Rs 260.96, and high-speed diesel prices by Rs 6.70 per liter, lowering it to Rs 266.07, due to a drop in global fuel prices.
• In June 2024, Pakistan's import value of insecticides was Rs 3.86 billion, a 22.8% decrease from Rs 5 billion in June 2023.
• The National Assembly's IT Committee has requested PTA Chairman Hafiz Rehman to explain the social media and internet disruptions.
• Qatar will host Gaza ceasefire talks on Thursday, with the aim of halting the ongoing genocide.

AGRI-UPDATES - COMMODITIES, POLICY & DEVELOPMENTS

• Farmers Push for Organic Dates in Khairpur: Following Kinnow's success, farmers urge the government to promote organic date cultivation in Khairpur's desert area, ideal for growing premium dates. They believe organic dates, which can command higher prices, could be produced using indigenous manure, and suggest exploring new markets for these high-demand fruits. [ET]
• Punjab Launches Tree-Planting Campaign: On Independence Day, the Punjab Forest Department kicked off a tree-planting campaign under the “Plant for Pakistan” programs, with over 3 million saplings being planted across Punjab. Led by Maryam Aurangzeb, the initiative aligns with Chief Minister Maryam Nawaz's vision and is tracked via the “Plant for Pakistan” app. [BR]
• SBP Lifts Import Restrictions Amid FX Reserve Surge: SBP Governor Jameel Ahmad announced that there are no import restrictions as foreign exchange reserves have risen to $9.3 billion despite ongoing debt repayments. He highlighted that IT exports have significantly increased, which positively impacts the economy. [Dawn]
• Inflation Drives Major Spending Cuts in Pakistan: Amidst rising inflation, 68% of Pakistanis have reduced their expenses, with 23% cutting down on dining out and 21% on grocery spending, including 33% of women. Additionally, 15% reported lowering electricity consumption, and 5% reduced their intake of meat, milk, and fruit. [The News]
• Pakistan to Export Sugar to Tajikistan: Pakistan has agreed to export 40,000 tons of refined sugar to Tajikistan at preferential prices under a government-to-government arrangement, pending formal approval from the Economic Coordination Committee (ECC) and the federal cabinet. The Ministry of Industries and Production has submitted the proposal to the ECC for review. [The News]
• Cement Exports Rise: Rs 8.27 billion was the export value of cement in June 2024, up 35.6% compared to Rs 6.1 billion in June 2023, according to the Pakistan Bureau of Statistics. [ET]

ENERGY - WEATHER, WATER & POWER

• NDMA Issues Flood Warning; 179 Dead Since July: The NDMA has issued a flash and urban flood warning, noting at least 179 deaths and 325 injuries from ongoing monsoon rains since July 1, 2024. Khyber-Pakhtunkhwa is expected to experience urban flooding and heavy rains from August 14 to 18, with authorities advised to prepare for potential flooding and increased water flow. [BR] [Dawn] [ET]
• June 2024 Imports: Insecticides & Palm Oil - In June 2024, Pakistan's import value of insecticides was Rs 3.86 billion, a 22.8% decrease from Rs 5 billion in June 2023. Palm oil imports totaled Rs 68.8 billion, down 3.7% from Rs 71.4 billion in the same month last year. [ET] [ET]
• Petrol & Diesel Prices Cut: The government has reduced petrol prices by Rs 8.47 per liter, bringing it to Rs 260.96, and high-speed diesel prices by Rs 6.70 per liter, lowering it to Rs 266.07, due to a drop in global fuel prices. The petroleum development levy remains unchanged despite an increase in the federal budget for 2024-25. [The News]
• Nepra Flags Disco Losses & Inefficiencies: Nepra expressed concern over power Distribution Companies (Discos) due to reduced electricity sales and increased losses and inefficiencies amounting to Rs 596 billion. Discos' electricity purchases for FY 2023-24 fell to 11,142 GWHs, a 1% decrease from the previous year, while losses increased to 18.31% from 16.84%. [BR]
• New 660 MW Coal Plant Begins Operations: On August 14, a new 660 MW coal-fired power plant in Jamshoro will start operations, marking a significant advancement in Pakistan's energy infrastructure. Funded by the Asian Development Bank, the plant uses advanced supercritical technology to improve efficiency, stabilize the grid, and support Karachi and the southern region. [BR]
• PM Promises Electricity Tariff Cuts & Cost Reduction Measures: On Independence Day, Prime Minister Shehbaz Sharif promised a significant cut in electricity tariffs to ease the burden on industry and agriculture. He also addressed the Rs 500 billion annual loss from electricity theft and emphasized efforts to use locally sourced coal in power plants to reduce costs. [Dawn] [Dawn] [ET]
• OGDCL Discovers Gas: RLNG Prices Up 3.20% - OGDCL has discovered gas at its Chak 202-1 well in Rahim Yar Khan, testing at 6.15 MMSCFD with a pressure of 1340 psi. Due to higher international prices and system losses, Ogra has increased RLNG prices by up to 3.20% for August, with SNGPL's transmission price rising to $13.06 per mmBtu and distribution price to $14.01 per mmBtu. [BR] [Dawn]
• Pakistan Approves 15 Development Projects: Despite Pakistan's worsening fiscal situation and rising public debt, the government approved 15 development projects costing Rs 515 billion, including a $900 million foreign loan for climate change. The Central Development Working Party (CDWP) endorsed 12 schemes, with seven sent to the Executive Committee of the National Economic Council (ECNEC) for final approval. [ET]

PAKISTAN - ECONOMICS, POLITICS & SECURITY

• From $3 Billion in 1947 to $375 Billion in 2024: Pakistan's economy has grown from $3 billion in 1947 to $375 billion by June 30, 2024. Despite celebrating its 78th Independence Day, the country still grapples with challenges such as mounting debt and an energy crisis, stemming from economic deterioration since the early 1990s. [ET]
• Imran Khan Denies PTI Link to Gen Faiz Hameed’s Custody: After former intelligence chief Lt Gen Faiz Hameed was taken into military custody, PTI founder Imran Khan clarified that their relationship was purely professional and not connected to PTI's interests. Khan described the matter as an internal army issue and stated that PTI had no involvement in the army's actions. [Dawn]
• Gen Munir Accuses Foreign Powers of Digital Terrorism: Army Chief Gen Asim Munir accused foreign powers of "digital terrorism" aimed at creating rifts between Pakistani state institutions and its people. Speaking at the Independence Day parade, he highlighted the need for anti-terror measures and addressed issues on the Western border, the TTP threat, and the situation in Balochistan. [Dawn]
• Confusion Surrounds $8B PSWF: Under pressure to dissolve the $8 billion Pakistan Sovereign Wealth Fund (PSWF), the government admitted confusion over its role and functions. The National Assembly's Standing Committee on Finance, led by PPP's Syed Naveed Qamar, raised concerns about the fund's vagueness and lack of clarity since its creation a year ago. [Dawn]
• Key Sectors Drive 65% of Income Tax: In FY24, 28 sectors contributed 65% of total income tax, with seven key sectors, including banks and petroleum, making up 42%. The FBR collected Rs 1.896 trillion from these sectors, marking a 35.7% increase from the previous year due to higher tax rates and prices. [Dawn]
• Top Sectors Contribute 65% of Income Tax: In FY24, the top 28 sectors contributed about 65% of total income tax, showing a concentration in existing industrial and service sectors. Seven key sectors—banks, petroleum, power, textiles, telecom, pharmaceuticals, and sugar—accounted for 42% of the tax collection, while 21 other sectors contributed nearly 23%. [Dawn]
• Energy Stake Sales to UAE Stalled: Pakistan's plans to sell stakes in profitable energy companies to the UAE are stalled due to issues with the Sovereign Wealth Fund Act, preventing the fund from becoming operational. Acting Finance Secretary Nasheeta Mohsin revealed this during a National Assembly Standing Committee on Finance briefing. [BR] [ET]
• PSX Drops Over 100 Points Amid Uncertainties: The PSX dropped over 100 points on Tuesday, with the KSE-100 index falling to 77,817.32 due to political and economic uncertainties, including concerns over power plants, PSDP cuts, a weak rupee, and a 36% drop in auto sales. [ET]

INTERNATIONAL - MARKET, POLITICS, SECURITY & DEVELOPMENT

• Taliban Marks 3 Years with Bagram Parade: The Taliban marked three years in power with a military parade at the former US air base in Bagram, showcasing homemade bombs, fighter aircraft, and Soviet-era tanks. The event was attended by Chinese and Iranian diplomats and highlighted the base's symbolic shift from a key site of US-led operations against the Taliban to a symbol of their control. [Dawn]
• Qatar to Host Gaza Ceasefire Talks: Qatar will host Gaza ceasefire talks on Thursday, with the aim of halting the ongoing conflict. Mediators from the US, Qatar, and Egypt have invited both Israel and Hamas to negotiate. Despite Hamas' initial refusal to participate, it is expected that mediators will consult with the group afterward. The genocide has resulted in nearly 40,000 deaths in Gaza, according to the health ministry there. [Dawn]
• Ukraine to Create Buffer Zone in Kursk: Ukraine plans to create a buffer zone in Russia's Kursk region to protect border communities from shelling. Since the major offensive began on August 6, Ukrainian forces have captured 74 settlements, prompting the evacuation of tens of thousands of civilians. President Zelensky reported ongoing advances, increased Russian POWs for exchange, and preparations for further actions. [Dawn] [Dawn]
• Russia Reinstates Petrol Export Ban: Russia is reintroducing a ban on petrol exports from September 1 to December 31, 2024, to stabilize domestic fuel prices amid seasonal demand and refinery repairs. The ban, previously in place from March to July, will not affect exports under intergovernmental agreements with Eurasian Economic Union members. [BR]
• Global Jet Fuel Demand Expected to Soften: Global jet fuel demand is expected to soften due to reduced travel budgets and slower consumer spending, which may impact oil prices. Weaker consumption in the US and China has led to lower global oil demand in early 2024, despite jet fuel's anticipated growth post-pandemic. [BR]
• NCOC to Review Mpox Measures: The NCOC will meet today to review measures against mpox, following the WHO's declaration of a global public health emergency. The WHO's emergency committee determined that the situation, marked by rising cases in the Democratic Republic of Congo and nearby regions, constitutes a public health emergency of international concern. [Dawn] [ET]
• Opinion: Why China’s & Russia’s Militaries Are Training Together - “The two countries have held joint exercises near Alaska, Taiwan and Japan in defiance of the United States and its alliances. China and Russia have pressed an informal political and economic alliance against the West. Now they are stepping up the cooperation between their militaries with increasingly provocative joint war games. Chinese and Russian long-range bombers patrolled together near Alaska for the first time last month. Days earlier, the countries held live-fire naval drills in the hotly contested South China Sea for the first time in eight years.” - By David Pierson [NYT]

OPINION(S) & REMAINDERS

• PIA’s Rs 21.81B Losses Due to Delays: PIA, currently for sale, has incurred over Rs 21.81 billion in losses due to excessive aircraft maintenance delays. The auditor general's report highlights delays of 44 to 239 days, leading to major operational and financial issues. [ET]
• NA IT Committee Requests PTA Explanation on Internet Slowdown: The National Assembly's IT Committee has requested PTA Chairman Hafiz Rehman to explain the social media and internet disruptions, with a meeting scheduled for August 21. WISPAP reports a 30-40% slowdown in internet speeds due to increased government monitoring, impacting the digital economy. [BR] [Dawn]
• Former Punjab Prisons Official Arrested: Gen Faiz Hameed Detained - A former deputy superintendent of Punjab prisons, recently transferred from Central Jail Adiala, has been arrested on charges of facilitating PTI founder Imran Khan as a messenger. This arrest follows the recent detention of retired Lt Gen Faiz Hameed by the ISPR for violating the Army Act, with Field General Court Martial proceedings underway. [Dawn]
• JazzCash President Joins Forbes Finance Council: Murtaza Ali, President of JazzCash, has been accepted into the Forbes Finance Council, recognizing his exceptional contributions to the fintech and telecommunications sectors. With over 25 years of experience, his leadership at JazzCash has significantly impacted digital financial services in Pakistan. [BR]
• Auto Firms Launch Imported EVs: Due to a slowdown in fossil fuel vehicle sales and political and economic uncertainty, several auto companies are introducing imported electric vehicles (EVs) to test market demand. Sazgar Engineering Works Limited (SEWL) plans to launch the imported ORA-7 EV soon, with bookings starting shortly thereafter. [Dawn]
• Opinion: Middle Class is in Deep Recession - “The lower income groups are in an acute crisis and the middle class is already in a deep recession. These unnatural parallel economies are the direct result of very prejudiced economic policies and this country’s rulers seem to have forgotten that this is the fifth highest populated country in the world, and already one of the poorest and most illiterate, and middle- and lower-income classes in crisis means millions and millions of households struggling to make ends meet.” - By Shahab Jafry [BR]
• Opinion: Climate without Borders - “CLIMATE change does not need passports as it does not respect borders. Pakistan’s climate risks are rooted in shared ecosystems with its neighbours. Major regional climatic developments and trends often cast a shadow on our national economic progress and well-being. Our climate threats originate in regional climate systems, often located in neighbouring countries.” - By Ali Tauqeer Sheikh [Dawn]
• Opinion: Fixing the IPPs - “VISITING Islamabad with my grandchildren, I decided to introduce them to our very impressive Islamabad Sports Complex. Getting there, we found that the Asian Junior Individual Squash Championship was going on. It was a delight to see scores of kids, both boys and girls, from the age of 10 onwards, from 12 different countries competing hard.” - By Tasneem Noorani [Dawn]