- Farmers led by SAI staged a protest, culminating in a sit-in outside a local press club, to voice their opposition to the black-marketing of urea fertilizer and the sale of counterfeit seeds affecting farmers in the Rabi season.
- The interim Sindh government has granted approval for the allocation of more than 52,000 acres of state land for corporate agriculture farming to the army-backed company, Green Corporate Initiative (Pvt) Ltd.
- The government is contemplating dropping 137 inactive projects in the PSDP 2023-24, saving Rs 116 billion.
- Pakistan's economy is expected to grow by 2.1% in 2024, rebounding from a contraction this fiscal year, with factors such as eased supply bottlenecks, lower interest rates, and ongoing IMF support. The ADB has approved 3 projects totaling $658.8 million to contribute to Pakistan's inclusive and sustainable growth.
- Russian President Vladimir Putin made a rare one-day tour to the Middle East, visiting Saudi Arabia and the United Arab Emirates (UAE) as the COP28 talks continued in the UAE.UN climate chief Simon Stiell accused nations of "posturing" at the COP28 talks in Dubai over the issue of fossil fuels.
- Oil prices dropped by 4% on Wednesday, reaching their lowest levels since June, with concerns about fuel demand heightened by a larger-than-expected increase in U.S. gasoline inventories.
COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE
- Farmers Rally Against Counterfeit Seeds - Farmers staged a protest, culminating in a sit-in outside a local press club, to voice their opposition to the black-marketing of urea fertilizer and the sale of counterfeit seeds. Led by Sindh Abadgar Ittehad (SAI) President Nawab Zubair Talpur, the demonstration highlighted farmers' discontent with the artificial shortage of urea fertilizer, prompting protests across Sindh. [Dawn]
- DG Customs Karachi Revises Values for Glue Imports: The Directorate General of Customs Valuation Karachi has updated customs values for the import of Hot Melt Adhesive Glue Stick/Granules/Chips/Pellets/Solid/other forms from China, UAE, Saudi Arabia, Indonesia, Malaysia, Thailand, Japan, and Europe. The new ruling, issued on Wednesday, outlines the revised customs values for these products. [BR]
- Corporate Farming Expansion: The interim Sindh government has granted approval for the allocation of more than 52,000 acres of state land for corporate agriculture farming. The allotted land includes 28,000 acres in Khairpur, 10,000 acres in Mithi, 9,305 acres in Dadu, 3,408 acres in Sujawal, 1,000 acres in Thatta, and 1,000 acres in Badin. The deal has been signed with Green Corporate Initiative, an army backed company. [Geo]
- Dry Fruits & Nuts Import: Rs 2.19 billion was the import value of dry fruits and nuts in Oct 2023, up 89.69% YoY. [ET]
- Carpets, Rugs & Mats Export: Rs 1.65 billion was the export value of carpets, rugs and mats in Oct 2023, up 25.93% compared to Rs 1.31 billion in Oct 2022, according to the PBS. [ET]
AGRI-INPUTS, WEATHER, WATER & POWER
- Revitalizing National Investments: The government is contemplating dropping 137 inactive projects in the PSDP 2023-24, saving Rs 116 billion. There's also consideration to transfer provincial projects back to their respective provinces, as they currently claim 33% of the federal PSDP's financial resources, totaling Rs 314 billion. [BR]
- Shifting Gears: Exporters Eye Affordable Power - Pakistan's export industry, facing economic challenges, is requesting reduced wheeling charges on the national grid to alleviate the burden of a 14-cent-per-unit tariff. They aim to shift to a competitive trading bilateral contract market (CTBCM) to access more affordable electricity from IPPs. [The News]
- Section 25A Redetermination: PVC Import Values - The Directorate General of Customs Valuation in Karachi has set a new Customs value of US $1.70 per kg for PVC stabilizer imports to assess duties and taxes. This adjustment follows stakeholders' requests to reassess Customs values in alignment with international market values, leading to a re-determination under Section 25A of the Customs Act, 1969. [BR]
- CPPL Completes €4.4 Million Papersack Line V Sale: Cherat Packaging Limited (CPPL) has finalized the sale of its Papersack Line V for €4.4 million and received a Letter of Credit from the buyer. The dismantling and shipment of the Papersack Line are expected to take approximately 3 months, during which the company can meet demand with its Lines III and IV, having a combined capacity of 160 million paper sacks per year. [MG]
- Strategic Restructuring: SSGC's Transition - Sui Southern Gas Company Ltd (SSGC) is converting its subsidiary, SSGC LPG Ltd, into a public limited company by offering 33.3 million shares through an IPO. The move aims to reduce SSGC's shareholding to around 75%, and SSGC LPG Ltd, a fully integrated LPG marketing and distribution company, has recorded significant sales growth, reaching 98,700 metric tons in 2022-23, up 127% from the previous year. [Dawn]
- PSO Sells 30% PRL Stake to UEG for $1.5 Billion Investment: Pakistan State Oil (PSO), a state-run oil marketing company, has agreed to sell its over 30% shareholding in Pakistan Refinery Limited (PRL) to a Chinese firm, United Energy Group (UEG). This move aims to attract a $1.5 billion investment to double the refining capacity of PRL. PSO holds a significant 63.6% stake in PRL, and the agreement with UEG is set to facilitate plant expansion and upgrade efforts. [ET]
- Disease Landscape: Pakistan grapples with a high prevalence of diseases, notably dengue, malaria, swine flu, respiratory issues, leishmaniasis, hookworm, scabies, anemia, and yellow fever. Urban areas, particularly in Punjab and Sindh, are more affected due to population growth. Dengue cases are prominent in cities like Lahore and Karachi, while diseases like leishmaniasis, scabies, hookworm, and yellow fever are common in densely populated, low-income areas. [Dawn]
AGRI UPDATES & PAKISTAN POLICY
- ADB's Investment: $658.8 Million for Inclusive Growth Projects - Pakistan's economy is expected to grow by 2.1% in 2024, rebounding from a contraction this fiscal year, with factors such as eased supply bottlenecks, lower interest rates, and ongoing IMF support. The Asian Development Bank has approved 3 projects totaling $658.8 million to contribute to Pakistan's inclusive and sustainable growth. [The News] [BR] [BR] [Dawn] [ET]
- Finance Minister Leads IMF Mission on Budget Digitization: Finance Minister Dr. Shamshad Akthar chaired the IMF Technical Assistance Mission launch meeting on digitizing the Finance Division's budget process. The mission aims to tailor recommendations for an effective budget-making process through digitization. [BR]
- Finance Ministry to Expose Banks in Illegal Activities: The Finance Ministry is scheduled to share a list of banks involved in illegal activities related to Letters of Credit and foreign currency speculation with the Special Investment Facilitation Council on December 7. The briefing will cover topics such as expenditure sharing, co-financing recommendations, and updates on implementing arrears related to the agriculture tube wells subsidy in Balochistan. [BR]
- Milestone Achievement: China-Pakistan Economic Corridor Turns 10 - The 10th anniversary of the China-Pakistan Economic Corridor (CPEC) was celebrated, showcasing a commitment to deepen cooperation. Both nations aim to accelerate ongoing projects, having completed several initiatives in energy, infrastructure, industrial cooperation, and social and economic development over the past decade. [BR]
- PIA Plans Demolition of Roosevelt Hotel: Pakistan International Airlines (PIA) aims to demolish the iconic Roosevelt Hotel in New York City for a new hotel joint venture. PIA, which owns 37 buildings globally, has 29 in Pakistan. After a $6 million renovation, the Roosevelt Hotel was handed over to the New York City Administration for 3 years and is currently serving as a center for housing migrants. [Dawn]
- Nawaz Sharif & PML-Q President Plan Electoral Alliance: Nawaz Sharif and PML-Q President Chaudhry Shujaat Hussain, after 15 years, are preparing proposals for an electoral alliance in the Feb 8 elections and a long-term political relationship following Sharif's historic visit to Hussain's Lahore residence. [Dawn]
- Pakistani Rupee Climbs for Seventh Day on Falling Oil Prices: The Pakistani currency continued its upward trend for the seventh consecutive working day on Wednesday, influenced by a decline in international oil prices. In the interbank market, the rupee appreciated to slightly above Rs 284 against the US dollar. According to the State Bank of Pakistan (SBP) data, the rupee gained 0.08%, or Rs 0.24, closing at Rs 284.14 against the US dollar. [ET]
INTERNATIONAL – OVERVIEW & MARKET OUTLOOK
- UN Raises Alarm on Israeli Genocide: UN officials are grappling to convey the severity of the situation in Gaza, using strong language to describe the "atrocities" committed by Israel. Secretary-General Antonio Guterres invoked Article 99 of the UN charter, expressing concern to the Security Council about the potential breakdown of public order in Gaza due to desperate conditions. [Dawn] [Dawn] [UN] [UN] [Al Jazeera] [Ohchr] [Reuters]
- Italy Withdraws from Belt & Road Initiative After Four Years: Italy has officially withdrawn from China's extensive Belt and Road infrastructure initiative, more than 4 years after being the only G7 nation to join. The decision was communicated to Beijing 3 days ago. [Dawn] [AP] [Al Jazeera] [BBC] [VOA] [Reuters]
- Putin Visits Middle East: Russian President Vladimir Putin made a rare one-day lightning tour to the Middle East, visiting Saudi Arabia and the United Arab Emirates (UAE). Putin landed in Abu Dhabi on Wednesday, the UAE's capital hosting the United Nations COP28 climate talks. At the presidential palace, he received a 21-gun salute and a flyby of UAE military jets. He also met with MBS. [BR] [ET] [Al Jazeera] [Kremlin] [Reuters] [WSJ] [Reuters]
- Fossil Fuel Debate Heats Up: COP28 Negotiations Intensify - UN climate chief Simon Stiell accused nations of "posturing" at the COP28 talks in Dubai, intensifying tensions among negotiators discussing the contentious issue of fossil fuels. As pressure mounts in the first week of the UN negotiations hosted by the oil-rich UAE, Europe's climate monitor confirmed that 2023 is set to be the hottest year in recorded history. [BR] [SW] [UN] [Reuters] [The Guardian] [UN]
- Fuel Demand Worries: Oil Prices Hit Lowest Since June - Oil prices dropped by 4% on Wednesday, reaching their lowest levels since June, with concerns about fuel demand heightened by a larger-than-expected increase in U.S. gasoline inventories. Brent crude futures declined by $2.81, or 3.5%, to $74.39 a barrel, while U.S. WTI crude futures fell by $2.74, or 3.8%, to $69.58 a barrel by 1733 GMT. [BR] [The News] [Yahoo] [Reuters] [CNBC] [Reuters]
- Opinion: It’s Big Oil vs. Science at the U.N. Climate Summit - “With fresh promises to cut methane and billions of dollars in new commitments to help poor countries adapt to a warming planet, a sense of momentum and optimism pervaded the first days of the United Nations climate summit in Dubai. Now comes the hard part. Five days into the two-week conference, known as COP28, the talks have become consumed by an intense debate over the future of fossil fuels.” - By David Gelles, Lisa Friedman & Vivian Nereim [NYT]
- E-Working Centers Initiative for Freelancers - The Ministry of Information Technology and Telecommunication in Pakistan is offering interest-free loans of Rs 100,000 to freelancers to establish e-working centers. This initiative aims to address the challenge of inadequate workplaces, empowering independent professionals. [ET] [ARY] [APP]
- Opinion: Sovereign Wealth Funds Struggle to turn their Trillions to Climate Finance - “UN-commissioned research found the world needs $125 trillion by 2050 to achieve net zero greenhouse gas emissions; UNCTAD pegged the annual developing world funding gap at $4 trillion. The UN and the International Finance Corporation are among those turning to sovereign wealth funds to fill it.” - By Libby George & Hadeel Al Sayegh [BR]
