- For the second consecutive year, Pakistan resumed sugar exports, continuing a trend since 2011-12, except for 2021 and 2022. From 2011-2023, sugar exports have been volatile, with notable peaks in 2012-13 at 1.06 million tonnes and in 2017-18 at 1.46 million tonnes, reflecting domestic market instability.
- For the first time, Pakistan's rice sector achieved $3.88 billion in exports, a 78% increase during FY24 due to India's rice export ban with a 60% growth in quantity and a 78% increase in value, exporting 6 million metric tons compared to 3.56 million metric tons worth $2.15 billion the previous year.
- The Pakistan Petroleum Dealers Association (PPDA) announced on Wednesday that talks with governments and stakeholders had failed, leading to a nationwide closure planned for July 5 for the 0.5% tax on PPDA members.
- The government approved a substantial increase of up to 51% or Rs 7.12/unit in electricity prices starting July, impacting 32.5 million mainly household consumers. This decision is expected to result in an additional burden of at least Rs 580 billion this fiscal year.
- The IMF recognized Pakistan's implementation of tough economic measures, including raising gas prices. Pakistan briefed the IMF on efforts to meet IMF conditions in its budget, but the IMF has reservations about the effectiveness of some revenue targets for FY’24-25.
- Russian President Putin and Chinese leaders attended a summit in Kazakhstan, under the Shanghai Cooperation Organization (SCO) to bolster anti-Western alliances and expand influence in Central Asia. This gathering underscores the deepening political, military, and economic ties between Moscow and Beijing since Russia's 2022 invasion of Ukraine.
AGRI-UPDATES - COMMODITIES, POLICY & DEVELOPMENTS
- Current Cotton Prices in Sindh & Punjab: Cotton prices in Sindh range from Rs 18,300 to Rs 18,600/maund, with Phutti priced between Rs 7,700 and Rs 8,400/40 kg. In Punjab, cotton is priced at Rs 18,800-Rs 19,000/maund, and Phutti ranges from Rs 8,300-Rs 9,100/40 kg. [BR]
- Pakistan Resumes Sugar Exports: For the second consecutive year, Pakistan resumed sugar exports, continuing a trend since 2011-12, except for 2021 and 2022, due to pro-industry policies and substantial government subsidies. From 2011-2023, sugar exports have been volatile, with notable peaks in 2012-13 at 1.06 million tonnes and in 2017-18 at 1.46 million tonnes, reflecting domestic market instability. [The News]
- Punjab Food Department Cracks Down on Flour Hoarding: The Punjab Food Department cracked down on flour hoarding and price manipulation with 647 inspections, penalizing three mills in Lahore and suspending one's license, totaling Rs 3 lakh in fines. Punjab CM Maryam Nawaz Sharif criticized the department for inaccurate flour price data and ordered alignment with PSQCA guidelines. [BR] [ET] [The Nation]
- Pakistan's Rice Exports Surge: For the first time, Pakistan's rice sector achieved $3.88 billion in exports, a 78% increase during FY24 due to India's rice export ban. Rafique Suleman highlighted the sector's performance, with a 60% growth in quantity and a 78% increase in value, exporting 6 million metric tons compared to 3.56 million metric tons worth $2.15 billion the previous year. [BR]
- Karachi Textile Unit Shuts Down Due to Losses: Amid Pakistan's severe economic crisis, a Karachi-based textile unit, Naz Textiles (Private) Ltd, has announced its closure due to substantial losses from a lack of orders. In an official statement issued on July 1, 2024, the company informed its workers that July 31 would be their last day, with all dues to be settled by August 10, signaling broader challenges in the country's export industry. [BR]
- Pakistan's Agro Exports Hit $8 Billion: Pakistan's agro and food product exports have achieved a historic milestone, reaching $8 billion in the fiscal year 2023-2024, up from $5.8 billion the previous year. This represents a significant 37% increase compared to the corresponding period in 2022-2023, highlighting the growing importance of Pakistan's agricultural sector in the global market. [BR] [BR]
- Donkey Exports to China: The Senate Standing Committee on Commerce was briefed on Wednesday that protocols for exporting donkey skins and meat to China had been finalized, as disclosed by commerce ministry officials during a meeting chaired by Senator Anusha Rahman. The committee also reviewed the performance of attached departments under the commerce division. [Dawn]
- Furniture Export Value in May 2024: Rs 155 million was the export value of furniture in May 2024, down 7.8% compared to Rs 168 million in May 2023, according to the PBS. [ET]
ENERGY - WEATHER, WATER & POWER
- Pakistan Petroleum Dealers Plan Nationwide Closure: The Pakistan Petroleum Dealers Association (PPDA) announced on Wednesday that talks with governments and stakeholders had failed, leading to a nationwide closure planned for July 5. PPDA chairman Abdul Sami Khan cited assurances from authorities but emphasized the strike would proceed without concrete resolution. [Dawn] [ET]
- Hot & Humid Weather in Karachi: Karachi experienced hot and humid weather conditions on Wednesday, with the maximum temperature reaching 37.1°C and relative humidity at 65%. The "feels-like" temperature soared to 55°C. The Meteorological Department forecasts continued cloudy weather on Thursday with temperatures expected between 35-37°C, maintaining hot and humid conditions. [Dawn]
- Protest Against Lake Occupation in Sanghar: Activists from the Pakistan Fisherfolk Forum protested at Aiwan-i-Sahafat against the illegal occupation of Kakaho Lake in Sanghar district by the Hingorjo community and other lakes by feudal lords. They accused powerful landlords of displacing hundreds of fishermen and seizing fishing rights from the poor. [Dawn]
- Government Decides to Shut Down Pakistan Steel Mills: The government has decided to permanently shut down Pakistan Steel Mills (PSM) due to sustained financial losses since 2009. Federal Secretary Dr. Muhammad Fakhr-e-Alam Irfan announced this during a Senate committee meeting chaired by Senator Aoun Abbas, adding that the Sindh government has been offered 700 acres of PSM's land to set up its own steel plant. [BR]
- Power Division Proposes Reduced Charges: The Power Division has reportedly submitted a modified proposal to the federal Cabinet to reduce rates for consumers with low utilization in months heavily affected by 50% of sanctioned load fixed charges. They have suggested lowering fixed charges to 25% of sanctioned load, according to sources familiar with the matter. [BR]
- K-Electric to Supply 40 MW to National Steel Complex: Provincial Energy Minister Syed Nasir Hussain Shah announced that K-Electric will supply 40 MW of electricity to National Steel Complex Limited through STDC via a 132 kV transmission line. He made these remarks during the signing ceremony of a memorandum of understanding (MoU) at the Sindh Energy Department office, attended by Minister of LG Saeed Ghani. [BR]
- Government Approves Significant Electricity Price Increase: In a significant blow to consumers, the government approved a substantial increase of up to 51% or Rs 7.12/unit in electricity prices starting July, impacting 32.5 million mainly household consumers. This decision is expected to result in an additional burden of at least Rs 580 billion this fiscal year, attributed to mismanagement and longstanding energy policy issues. [ET]
- SSGC to Upgrade Gas Supply Network: SSGC's MD, Imran Maniar, announced a new high-pressure gas supply network for industrial areas in Karachi and Hub. This upgrade includes dedicated pipelines for Korangi, Landhi, SITE in Karachi, and Hub, aiming to resolve persistent low gas pressure issues caused by shared lines with nearby residential areas. [ET] [The News]
- Neelum-Jhelum Project Offline Over Design Flaws: The Neelum-Jhelum Hydropower Project in Pakistan, generating 969 MW, has been offline since early May due to design flaws, causing an annual financial impact of Rs 55 billion. A government inquiry is investigating operational issues, including tunnel pressure fluctuations and de-watering concerns. [BR]
PAKISTAN - ECONOMICS, POLITICS & SECURITY
- IMF Recognizes Pakistan's Economic Measures: The IMF recognized Pakistan's implementation of tough economic measures, including raising gas prices, in recent discussions. Pakistan briefed the IMF on efforts to meet IMF conditions in its budget, but the IMF has reservations about the effectiveness of some proposed measures to achieve revenue targets for fiscal year 2024-25. [BR] [The News]
- PM Shehbaz Sharif Meets President Putin: Prime Minister Shehbaz Sharif met with Russian President Vladimir Putin during the SCO Council of Heads of States meeting, emphasizing enhanced bilateral cooperation in trade, energy, defence, and security. They discussed various regional and global issues in a warm and cordial meeting, as per a statement from the PM Office. [BR] [Dawn] [ET]
- Pakistan's Borrowings Dip to $7.547 Billion: From July to May of fiscal year 2023-24, Pakistan borrowed $7.547 billion, down from $8.613 billion in the same period last year, per Economic Affairs Division data. Including IMF and UAE inflows, total inflows were $11.547 billion, below the fiscal year target of $17.619 billion. In May 2024, Pakistan received $402.97 million, compared to $491.69 million in May 2023. [BR] [Dawn]
- Rift Over Tax Collection Stalls NTC Progress: A rift between federal and provincial tax authorities over harmonizing sales tax and federal excise duty (FED) collection has stalled progress, undermining decisions by the National Tax Council (NTC). The Sindh Revenue Board (SRB) has called for an NTC meeting, citing the Federal Board of Revenue's (FBR) inflexible stance as a major hindrance. [BR]
- PSX Hits Historic 80,000 Points: The Pakistan Stock Exchange (PSX) reached a historic milestone on Wednesday, surpassing 80,000 points on expectations of robust dividend payouts and an upcoming IMF loan agreement within a month. The market also benefited from positive trade figures, with exports rising by 10.54% to $30.7 billion and the trade deficit narrowing by 12.3% to $24.09 billion in the fiscal year 2023-24. [ET]
- Pakistan Eyes Roosevelt Hotel Sale: PIA Sale Concerns - Pakistan expects higher foreign exchange earnings from selling the Roosevelt Hotel in Manhattan with a new mixed-use sale strategy proposed by US advisers. Meanwhile, pre-qualified bidders for Pakistan International Airlines (PIA) are concerned about the EU's ban on Pakistani airlines, which could impact bidding for the national carrier currently up for sale. [Dawn] [ET]
- FBR Extends Anti-Smuggling Powers for Security Agencies: The Federal Board of Revenue (FBR) extended anti-smuggling powers for Pakistan Rangers, Pakistan Maritime Security Agency (PMSA), and Pakistan Coast Guards (PCG) until June 30, 2025. These agencies will collaborate with Pakistan Customs under amended guidelines to combat smuggling effectively. [BR]
- Commerce Ministry Criticizes Finance: The Commerce Ministry criticized the Finance Ministry for omitting its export growth recommendations from the federal budget 2024-25, despite approval by the Tariff Policy Board. This was highlighted by Additional Secretary Ahsan Mangi in a presentation to the Senate Standing Committee on Commerce. [BR]
INTERNATIONAL - MARKET, POLITICS, SECURITY & DEVELOPMENT
- Israel Genocide: Israel has approved its biggest land seizure in the occupied West Bank in more than three decades, a move criticised by activists on Wednesday as detrimental to Palestinian peace hopes. The 12.7-square-kilometre (4.9-square-mile) of land in the Jordan Valley was officially declared “state property” in June, according to an official declaration obtained by AFP after being revealed by the Peace Now group. [BR] [BR] [Dawn] [Dawn]
- Afghan Taliban Praise 'Doha III' Talks: The Afghan Taliban praised the "spirit of cooperation" shown towards Afghanistan in the UN-led 'Doha III' talks, where a spokesperson announced a prisoner swap with Washington. Spokesperson Zabihullah Mujahid highlighted positive changes in Western policies towards Afghanistan during the two-day meetings attended by international envoys in Doha. [Dawn]
- Putin, Chinese Leaders Attend SCO Summit: Russian President Vladimir Putin and Chinese leaders attended a summit in Astana, Kazakhstan, under the Shanghai Cooperation Organization (SCO) to bolster anti-Western alliances and expand influence in Central Asia. This gathering underscores the deepening political, military, and economic ties between Moscow and Beijing since Russia's 2022 invasion of Ukraine. [BR]
- UK Election: Labour Leads in Polls - Voters across the UK are casting ballots today in 650 constituencies amid predictions of a strong Labour Party victory. The Conservatives face uncertainty under Rishi Sunak if Labour secures around 40% of the vote, leaving them with 20% or less. Despite leading in polls, Labour is cautious about claiming victory before official results are in. [Dawn]
- EU Conditionally Approves Lufthansa's Stake in ITA Airways: The EU conditionally approved Lufthansa's acquisition of a 41% stake in ITA Airways, valued at 325 million euros ($350 million), with an additional 250 million euros from the Italian finance ministry. Italy sees this as a significant European success, enhancing Lufthansa's presence in the country and expanding travel options to Africa, South America, and the Middle East. [BR]
- Kenyan Presidency Orders Salary Increase Review: The Kenyan presidency has ordered a review of public servants' salary increases amid widespread protests over economic hardships and government spending. Demonstrations, led by Gen-Z Kenyans against proposed tax hikes, have broadened to call for President William Ruto's resignation and action against perceived corruption. [BR]
- S&P 500 and Nasdaq Hit Record Highs: On Wednesday, the S&P 500 and Nasdaq hit record highs amid economic softening, sparking expectations of a Federal Reserve interest rate cut in September. The Dow Jones Industrial Average closed flat, with healthcare and consumer stocks seeing selling pressure ahead of the Fourth of July holiday, which will keep trading closed on Thursday and likely maintain low volumes for the week. [BR]
- FBR Plans Senior Officials' Transfers Amid Corruption Allegations - The Federal Board of Revenue (FBR) plans to transfer numerous senior officials accused of corruption to the Admin Pool, pending issuance of notifications. The list encompasses officials from both the Inland Revenue Service and Pakistan Customs Service. [BR]
- PM Shehbaz Sharif Boosts Tajikistan Connectivity: Prime Minister Shehbaz Sharif invited Tajikistan to use Karachi Port for transit trade and discussed enhancing regional connectivity through railway and road projects in a bilateral meeting with Tajikistan's Prime Minister Qohir Rasulzoda. Shehbaz Sharif's two-day visit to Tajikistan was at the invitation of President Emomali Rahmon. [BR]
- Opinion: Haj & Climate Attributions - “CLIMATE change has begun to infringe on the freedom of believers to perform Haj freely and fearlessly. The world was shocked to learn that almost 1,500 individuals died of the heat during the pilgrimage. Heat Waves everywhere in the world, as in Pakistan, have become mercilessly hotter, frequent, and longer. The developments in attributive sciences are able to clearly assign the share of climatic changes to increased temperatures and precipitation.” - By Ali Tauqeer Sheikh [Dawn]
