Sugar Prices, Agri Mechanization, PSO Debts PIA, IMF on Tax, UAE in Crypto, Google Pay in Pk.

TOPLINE

• Sugar prices have surged to Rs. 180 per kg amid supply shortages and hoarding, with experts warning of a rise to Rs. 200. The government is considering imports to stabilize the market as poor planning faces criticism.
• The Punjab government has allocated Rs35 billion for agricultural mechanization, offering subsidies and interest-free loans up to Rs50 million. The initiative aims to boost productivity, reduce labor, and improve crop yields.
• As of February 28, 2025, PSO's outstanding dues from PIA for jet fuel have reached Rs28.88 billion, including Rs14.29 billion in principal and Rs14.59 billion in surcharges. PIA's financial struggles have delayed payments, prompting PSO to seek an early settlement.
• The IMF rejected tax exemptions for foreign investment in Pakistan, stressing a uniform tax policy. The move, part of fiscal reforms, may impact large-scale investment incentives.
• Abu Dhabi’s MGX invested $2 billion in Binance, strengthening UAE’s crypto presence and Binance’s regulatory standing. The deal reflects rising institutional interest in digital assets.
• Google has officially launched Google Wallet in Pakistan, offering users a secure and convenient platform for digital transactions. The app allows storage of payment cards, boarding passes, and loyalty cards on Android devices, enabling contactless payments and streamlined access to travel documents.

AGRI-UPDATES - COMMODITIES, POLICY & DEVELOPMENTS

• Daily Rates: Find the following rates on the hyperlinked titles: [Shipping Intelligence], [Pakistan Stock Exchange], [Kibor International Kibor Rates], [BRIndex100 & BR Sectoral Indices], [Activities of Karachi Port Trust, Port Qasim]
• Sugar Surges to Rs180 as Retailers Make a Killing: Sugar prices have soared to Rs180 per kg, with retailers profiting amid supply shortages. Consumers face rising costs as market manipulation and hoarding worsen the crisis. Authorities are under pressure to intervene and stabilize prices ahead of Ramadan. [Dawn]
• Govt Mulling Importing Sugar as Prices Soar: Amid rising sugar prices, the government is considering imports to stabilize the market. Local refined sugar shortages and increased demand have driven up costs, prompting officials to explore import options. The move aims to control inflation and ensure supply ahead of Ramadan. [Business Recorder]
• Govt’s Sugar Export Policy Backfires: Flaws in the government’s sugar export policy have led to domestic shortages, causing prices to surge. Experts warn that sugar rates could hit Rs200 per kg as supply dwindles. The crisis has sparked criticism over poor planning, with calls for immediate corrective measures. [The Express Tribune]
• Spot Rate Loses Rs300 Per Maund Amid Slow Activity: The Spot Rate Committee of the Karachi Cotton Association has reduced the spot rate by Rs300 per maund due to sluggish market activity. Weak demand and lower trading volumes have contributed to the decline, reflecting uncertainty in the cotton market. Traders remain cautious amid fluctuating prices. [Business Recorder]
• Punjab to Spend Rs35bn to Promote Agricultural Mechanization: The Punjab government has allocated Rs35 billion to modernize agriculture through mechanization. The initiative includes subsidies on farm equipment and interest-free loans up to Rs50 million via banks. The move aims to boost productivity, reduce manual labor, and improve crop yields across the province. [Business Recorder]
• Declining Crop Yields Raise Alarm: Pakistan's crop yields are falling due to climate change, water shortages, and outdated farming methods, raising food security concerns. Experts urge policy reforms, better irrigation, and modern techniques to counter the crisis and ensure sustainable agricultural production. [The Express Tribune]
• Agri Chamber Rejects Canal Projects: The Agriculture Chamber has opposed new canal projects, warning of potential water shortages for farmers. It calls for improved water management instead of projects that could harm irrigation. The government is urged to reconsider its approach to resource allocation. [The Express Tribune]
• Engro Completes Divestment of Eximp Agriproducts for Rs2.4bn: Engro Corporation has finalized the sale of Eximp Agriproducts for Rs2.4 billion as part of its portfolio restructuring. The divestment aligns with Engro’s strategy to focus on core business areas. The buyer's identity remains undisclosed, but the move is expected to optimize Engro’s capital allocation. [Pakistan Today Profit]

ENERGY - WEATHER, WATER & POWER

• PRGMEA’s Carbon-Neutral Model Aims to Triple Exports: Pakistan’s textile industry, led by PRGMEA, is adopting a carbon-neutral export model to triple exports while achieving net-zero emissions. The initiative focuses on sustainable production, energy efficiency, and eco-friendly practices to boost competitiveness in global markets. This strategy aligns with international green trade standards. [Business Recorder]
• OGDCL Revives Rajian-11 Heavy Oil Well, Restores 1,000 BPD Output: OGDCL has successfully revived the Rajian-11 heavy oil well, restoring production to 1,000 barrels per day. This move strengthens domestic oil output and reduces reliance on imports. The company continues efforts to enhance energy security through exploration and production optimizations. [Pakistan Today Profit]
• Haleon Pakistan Ships First Centrum Consignment to Kenya: Haleon Pakistan has exported its first consignment of Centrum, a leading multivitamin brand, to Kenya. This marks a significant step in expanding its presence in African markets. The move aligns with the company’s strategy to boost exports and tap into new international opportunities. [Mettis Global News]
• PSO's Outstanding Dues from PIA Reach Rs28.88bn: As of February 28, 2025, Pakistan State Oil Company Limited's (PSOCL) outstanding dues from Pakistan International Airlines (PIA) for jet fuel supplies have accumulated to Rs28.88 billion, comprising Rs14.29 billion in principal and Rs14.59 billion in late payment surcharges. PIA's financial struggles have hindered timely payments, prompting PSO to seek early settlement. [Business Recorder]
• Ban on Agrochemicals Sparks Fears for Farmers: Farmers and experts warn that the recent ban on agrochemicals could severely impact crop yields and destabilize food security. The restrictions may lead to increased production costs and lower agricultural output, raising concerns over long-term sustainability. Stakeholders urge the government to review the decision and find balanced solutions. [The Express Tribune]
• Prolonged Power Outages in Ramazan: Severe power outages across Karachi have disrupted daily life during Ramazan, with some areas experiencing up to 18 hours of load shedding. The crisis has sparked frustration among residents, who struggle with high temperatures and disrupted routines. Authorities have yet to provide a concrete solution to the worsening electricity crisis. [The Express Tribune]
• K-Electric Petitions for Tariff Cut of Rs4.84: K-Electric has requested a Rs4.84 per unit tariff reduction for its consumers under the monthly fuel adjustment mechanism. The petition, submitted to NEPRA, cites lower fuel costs as the reason for the proposed cut. If approved, the adjustment will provide relief to electricity consumers in Karachi. [The Express Tribune]
• Punjab CM Launches Free Wi-Fi in Major Cities: Punjab Chief Minister Maryam Nawaz has launched a free Wi-Fi service in major cities, benefiting around 5 million people. The initiative aims to enhance digital connectivity and provide internet access in public spaces. The project aligns with the government's vision of promoting digital inclusion and accessibility. [Business Recorder]

PAKISTAN - ECONOMICS, POLITICS & SECURITY

• Jaffer Express Hijacking: DG ISPR Confirms All Passengers Safe: The DG ISPR has confirmed that all passengers aboard the Jaffer Express remained unharmed during a successful clearance operation and 33 terrorists killed. Security forces swiftly intervened after armed men hijacked the train, ensuring the safety of those on board. Authorities are investigating the incident, which raised concerns over railway security. [The News International] [Dawn]
• IMF Denies Tax Exemptions for Foreign Investment Projects in Pakistan: The IMF has refused to allow tax exemptions for foreign investment projects in Pakistan, emphasizing the need for a uniform tax policy. The decision is part of broader fiscal reforms aimed at increasing revenue and reducing budget deficits. This may impact investment incentives, particularly for large-scale projects. [Pakistan Today Profit]
• ECC May Approve Potassium Sulphate Export from Gwadar Port Today: The Economic Coordination Committee (ECC) is set to consider approving the export of potassium sulphate from Gwadar Port during its meeting today. This decision aims to boost trade activities and utilize the port's full potential, contributing to the country's economic growth. [Business Recorder]
• Equities Suffer Third Straight Loss: Pakistan’s stock market extended its losing streak for a third consecutive session as investors remained cautious amid economic uncertainties. Selling pressure in key sectors dragged the index lower, with concerns over inflation and policy decisions affecting sentiment. Analysts predict continued volatility in the coming days. [Dawn] [ET]
• Pak-Afghan Jirga Postponement Dismays Delegates: The postponement of the Pak-Afghan jirga has disappointed delegates who were set to discuss key bilateral issues, including trade and security. The delay raises concerns over diplomatic ties and conflict resolution efforts between the two nations. Officials have yet to announce a new date for the meeting. [Dawn]
• Oman Offered Gwadar, Karachi Ports for Central Asia Access: Pakistan has offered Oman access to Gwadar and Karachi ports to facilitate trade with Central Asia. The proposal was discussed during talks in Muscat, aiming to strengthen economic ties and regional connectivity. Oman’s response to the offer is awaited as both sides explore trade expansion opportunities. [Dawn]
• “Pakistan’s Economy to Grow by 2.3% in 2024,” Says Report: A new report projects Pakistan’s economy to grow by 2.3% in 2024, despite external vulnerabilities and fiscal challenges. The forecast highlights a modest recovery, supported by policy adjustments and financial inflows. However, inflation and structural issues remain key concerns for sustained growth. [Business Recorder]

INTERNATIONAL - MARKET, POLITICS, SECURITY & DEVELOPMENT

• UAE Buys World's Largest Crypto Exchange: Abu Dhabi-backed investment firm MGX has acquired a major stake in Binance, the world's largest cryptocurrency exchange, with a $2 billion investment. The move strengthens UAE’s role in global crypto markets and enhances Binance’s regulatory standing. The deal signals growing institutional interest in digital assets. [Dawn] [Firstpost] [CNBC]
• Afghan Opium Prices Soar After Poppy Ban: Opium prices in Afghanistan have surged after the Taliban's poppy cultivation ban, reaching $474 per kilogram in 2024—up from $122 in 2022. The UNODC warns of economic consequences for farmers reliant on opium production. The ban’s impact on global drug markets remains uncertain. [Dawn] [Barron’s]
• NASA Telescope Launched to Study Universe’s Origins: NASA has successfully launched its latest space telescope to investigate the origins of the universe after multiple delays. The telescope will explore cosmic evolution, dark matter, and early galaxies, offering groundbreaking insights into space. Scientists expect it to enhance our understanding of the cosmos. [Dawn] [Smithsonian Magazine]
• Israel-Hamas Talks Continue as Palestinians Testify on Abuse at UN: Israel and Hamas remain engaged in negotiations as Arab states present a Gaza reconstruction plan to the U.S., focusing on governance and aid distribution. Meanwhile, Palestinian survivors testified at the UN about sexual abuse and mistreatment in Israeli detention, sparking calls for investigations. Israel denies the allegations as tensions persist. [Al Jazeera] [Al Jazeera] [Dawn]
• Europe and Canada Warn of Retaliation Over Trump’s Steel and Aluminum Tariffs: The EU and Canada are preparing countermeasures after former U.S. President Donald Trump reinstated steel and aluminum tariffs, raising fears of a trade war. European officials warn of retaliatory tariffs, while Canada has strongly opposed the move, citing economic risks. The tariffs, aimed at protecting U.S. industries, may strain global trade relations. [Washington Post] [Reuters] [BBC] [Business Recorder]

OPINION(S) & REMAINDERS

• Karakoram Highway Reopened, Baltistan Road Blocked Again: The Karakoram Highway has been reopened after landslides, restoring connectivity to northern areas. However, the Baltistan road remains blocked due to fresh landslides, disrupting travel and supplies. Authorities are working to clear the route, but adverse weather continues to pose challenges. [Dawn]
• Google Pay in Pakistan: Google has officially launched Google Wallet in Pakistan, offering users a secure and convenient platform for digital transactions. The app allows storage of payment cards, boarding passes, and loyalty cards on Android devices, enabling contactless payments and streamlined access to travel documents. Supported banks include Bank AlFalah, Bank of Punjab, Faysal Bank Noor, HBL, JazzCash, Meezan Bank, and UBL, with more integrations planned. Pakistan's digital payment landscape has seen significant advancements, with the State Bank's Raast system enabling instant, cost-free transactions. Initiatives like PayPak and digital banks such as Easypaisa are boosting financial inclusion. Visa’s partnership with 1Link aims to expand digital payment acceptance tenfold in the next three years. [Business Recorder] [Dawn]
• ACT Alliance Report: Tax Regime Inflicts Huge Losses on Economy: A report by ACT Alliance highlights that Pakistan’s flawed tax regime is causing significant economic losses. It points to weak enforcement, tax evasion, and an over-reliance on indirect taxes as major issues. The report urges reforms to create a fairer and more efficient tax system to boost revenue. [Business Recorder]
• Symmetry Group Eyes Rs2bn Through IPO for New AI Subsidiary: Symmetry Group plans to raise Rs2 billion via an initial public offering (IPO) to fund its new artificial intelligence (AI) subsidiary. The investment will support AI-driven digital transformation services, positioning the company for growth in the tech sector. The IPO reflects rising investor interest in AI ventures. [Pakistan Today Profit]
• Opinion: Sustainable Farming - “For generations, our farmers have relied on age-old techniques, but in recent years, the sector has struggled with declining productivity, water shortages and rising costs. As a researcher in renewable energy, I've often asked: why aren't we harnessing the power of technology and sustainable energy solutions to revolutionise our agricultural landscape?” - By Dr Intikhab Ulfat [ET]