- US Ambassador Blome discussed bilateral cooperation with Finance Minister Aurangzeb, emphasizing economic ties, while Aurangzeb highlighted Pakistan-US relations. Additionally, Pakistan and the IMF concluded talks on the $3 billion Stand-By-Arrangement, with the IMF recommending the abolition of excise duties on low-revenue items.
- PFA cracked down on unhygienic meat shops and fast-food outlets, closing one shop and imposing fines totaling Rs 345,000 on 16 outlets. Inspections resulted in the disposal of 120 kg of spoiled meat and 30 liters of rancid oil.
- Rs 3.11 billion was the export value of spices in Feb 2024, up 49.6% compared to Rs 2.08 billion in Feb 2023.
- In the first half of fiscal year 2024, the cement industry saw significant growth, with revenue up 20% for 15 companies. Industry sales rose by 10%, boosted by a 15% increase in exports. After-tax earnings surged by 24% to approximately Rs 43 billion, driven by improved retention prices and cost optimization.
- After Pakistani military airstrikes in Afghanistan, Tuesday saw relative calm along the border, with silence from both sides except for isolated exchanges in Angoor Adda. The strikes targeted militant hideouts in Khost and Paktika provinces, with reported casualties on what Pakistan claims are TTP hideouts.
- US Defense Secretary Austin warned of Ukraine's perilous situation, affirming America's commitment to Kyiv despite dwindling funds. House Speaker Johnson's refusal to schedule a vote on a $60 billion bill for Ukraine has led the White House to seek alternative means to aid Kyiv.
COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE
- Pakistan's Inflation Discrepancies: Former Finance Minister Dr. Hafeez Pasha alleges that Pakistan's CPI and SPI inflation rates are understated by about 2.4$, with the CPI for February 2024 estimated at around 25.5% compared to the reported 23.%. He also calculated the SPI at 35.29%, higher than the PBS-reported 32.89% year-on-year for the week ending March 14th. [BR]
- Wheat Collaboration: China-Pakistan Conference - Chinese wheat experts participated in the "2nd China-Pakistan Joint Wheat Molecular Breeding Conference" in Islamabad, emphasizing specialized strains for regions like Khyber Pakhtunkhwa and Balochistan. They also visited wheat research institutes while discussing ways to improve wheat seed productivity in Pakistan with local researchers. [The News] [PO]
- Flour Mills Sealed: Quality Concerns Arise - Two flour mills in DG Khan were sealed for one month by the food department for supplying substandard flour for the Punjab government’s Nigehban Ramazan package, due to high moisture content. Samples were sent to the Punjab Food Authority for analysis, following similar findings in Rajanpur district's gram flour earlier. [Dawn]
- PFA Cracks Down on Unhygienic Outlets: PFA cracked down on unhygienic meat shops and fast-food outlets, closing one shop and imposing fines totaling Rs 345,000 on 16 outlets. Inspections resulted in the disposal of 120 kg of spoiled meat and 30 liters of rancid oil, with warning notices issued to suppliers. Additionally, an Emergency Prohibition Order was imposed on a food point for storing unhygienic meat. [ET] [UP]
- Punjab Crackdown: Ramazan Price Violations - During the first week of Ramadan in Punjab, authorities arrested 3,288 individuals and registered 1,181 cases against profiteers for overcharging consumers. Price control magistrates inspected 435,000 spots, imposing fines exceeding Rs 40 million. Punjab Chief Secretary Zahid Akhtar Zaman reviewed these efforts, which also addressed ration distribution under the Ramadan package. [Dawn]
- APTMA's Textile Export Roadmap: The All Pakistan Textile Mills Association (APTMA) presented a policy roadmap to Commerce Minister Jam Kamal, aiming to boost textile exports to $50 billion by 2029. APTMA emphasized the need for competitive energy tariffs, highlighting export-led growth as essential given Pakistan's economic vulnerability. [BR]
- Non-Textile Value-Added Exports Up 0.47% - Exports of non-textile value-added products grew by 0.47% year-on-year in the first 8 months of the current fiscal year, reaching $4.24 billion, according to data from the Pakistan Bureau of Statistics. This indicates increased international market demand, excluding food product exports from the analysis. [Dawn]
- Wilmar Subsidiaries & Unity Foods Share Acquisition: Wilmar Pakistan Holdings Pte Ltd (WPH), a subsidiary of Wilmar International Ltd (WIL), alongside Unity Wilmar Agro (Pvt) Ltd (UWA) and some Unity Foods Ltd (UFL) shareholders, intend to acquire 277,070,908 UFL shares. The offer, managed by Arif Habib Ltd, complies with Pakistani laws, as confirmed by UFL to the Pakistan Stock Exchange (PSX). [Dawn]
- Spices Export: Rs 3.11 billion was the export value of spices in Feb 2024, up 49.6% compared to Rs 2.08 billion in Feb 2023, according to the Pakistan Bureau of Statistics. [ET]
AGRI-INPUTS, WEATHER, WATER & POWER
- Met Office: Wind Change Brings Relief - The Met Office forecasts a likely change in wind direction on Wednesday, offering relief from the sizzling weather conditions in the metropolis. The maximum temperature reached 37.5 degrees Celsius on Tuesday, marking the highest recorded temperature this month. [Dawn]
- PM Shehbaz Sharif Urges NDMA Action: Prime Minister Shehbaz Sharif urged the National Disaster Management Authority (NDMA) to accelerate joint surveys with provinces and enhance cooperation in managing natural disasters. He received a briefing on NDMA's assistance efforts for recent heavy rains and directed that aid should be targeted to affected individuals following the completion of surveys. [BR]
- FPCCI Urges Infrastructure Development in Agriculture: The FPCCI Standing Committee on Agriculture suggests the Fauji Foundation develop infrastructure in corporate farming areas, particularly in the Cholistan belt, under the Special Investment Facilitation Council (SIFC). Convenor Chaudhry Ahmad Jawad emphasizes the need for accelerated development of infrastructure to support investors in the agricultural sector. [ET]
- Cement Industry Thrives in FY2024 H1: In the first half of fiscal year 2024, the cement industry saw significant growth, with revenue up 20% for 15 companies. Industry sales rose by 10%, boosted by a 15% increase in exports. After-tax earnings surged by 24% to approximately Rs 43 billion, driven by improved retention prices and cost optimization. Overall industry margins reached 27%, compared to 26% last year. [BR]
AGRI UPDATES & PAKISTAN POLICY
- Pakistan-US Economic Talks: IMF Stand-By Deal - US Ambassador Blome discussed bilateral cooperation with Finance Minister Aurangzeb, emphasizing economic ties, while Aurangzeb highlighted Pakistan-US relations. Additionally, Pakistan and the IMF concluded talks on the $3 billion Stand-By-Arrangement, with the IMF recommending the abolition of excise duties on low-revenue items. [BR] [BR] [BR] [Dawn]
- Pakistan-Afghan Border Calms Post Airstrikes: After Pakistani military airstrikes in Afghanistan, Tuesday saw relative calm along the border, with silence from both sides except for isolated exchanges in Angoor Adda. The strikes targeted militant hideouts in Khost and Paktika provinces, with reported casualties. A "temporary truce" was observed in Kurram, but trade remained suspended. [Dawn]
- Pakistan's Exchange Rate Dynamics: In February, the State Bank of Pakistan reported a month-on-month increase in the Real Effective Exchange Rate Index (REER) to 102.17, marking an 18.13 percent rise compared to the previous year. The Nominal Effective Exchange Rate Index (NEER) also rose to 38.79, with a slight annual decline of 1.27 percent. [The News]
- Pakistan's Current Account: February 2024: In February 2024, Pakistan's current account swung to a surplus of $128 million from January's $303 million deficit. The State Bank of Pakistan reported that the cumulative deficit for FY24 fell below $1 billion, marking a 74% decline compared to FY23, with a deficit of $999 million versus $3.846 billion in the same period. [BR] [BR] [Dawn]
- Pakistan's Roshan Digital Accounts Inflows Surge: In February 2024, Pakistan received $141 million in fresh foreign inflows through the Roshan Digital Accounts (RDA), bringing the total RDA funds since its launch to $7.478 billion by the end of February 2024, compared to $7.337 billion in January 2024. Out of the total funds, $6.225 billion has been utilized, with $4.667 billion used locally and $1.56 billion repatriated. [BR] [ET]
- IT & ITeS Exports Up, Feb 2024 Sees Minor Dip: IT and IT-enabled Services (ITeS) export remittances rose by 14.9% in the first eight months of fiscal year 2023-24, reaching $1.977 billion. However, there was a four percent decrease month-on-month in February 2024, with remittances totaling $257 million. Year-on-year, the sector saw a 32% increase compared to February 2023. [BR]
- Minister Urges Internet Regulation Amid Social Media Ban: Interior Minister Mohsin Naqvi urged for "better laws" to regulate internet free speech amid disruptions to social media platform X. He emphasized addressing false allegations while preserving freedom of expression. Petitioner Abdul Moiz Jaferii criticized the ban as unconstitutional and illegal, with the case set for further review by the Sindh High Court on Wednesday. [Dawn] [Dawn]
INTERNATIONAL – OVERVIEW & MARKET OUTLOOK
- Intensified Gaza Truce Talks Amid Israeli Aggression: Efforts to negotiate a Gaza truce intensified amid Israeli aggression, risking famine for many. Blinken urged urgent aid, with the UN warning of famine for 300,000 without more assistance. Hamas condemns attacks on Al Shifa Hospital as war crimes, as Netanyahu hinted at possible ground action. The UN stated that Israel's aid restrictions and military offensive could constitute using starvation as a "weapon of war," potentially constituting a war crime. [Dawn] [Dawn] [ET]
- UN: Record High Global Temperatures in 2023 - The United Nations reported that global temperatures hit record highs in 2023, with heat waves impacting oceans and glaciers experiencing record ice loss. The year marked the warmest ever recorded, capping off the hottest 10-year period. The World Meteorological Organization warned of even hotter temperatures expected in 2024. [BR] [Dawn]
- US Defense Secretary Warns of Ukraine's Peril: US Defense Secretary Lloyd Austin warned of Ukraine's perilous situation, affirming America's commitment to Kyiv despite dwindling funds to support Ukrainian forces. House Speaker Mike Johnson's refusal to schedule a vote on a $60 billion bill for Ukraine has led the White House to seek alternative means to aid Kyiv in its ongoing conflict with Russian forces. [Dawn]
- Putin Plans May Visit to China Amid Criticism: Russian President Vladimir Putin intends to visit China in May for talks with Xi Jinping, potentially his first overseas trip of his new term. While Western nations criticized Putin's re-election as unfair, China, India, and North Korea congratulated him, highlighting geopolitical divides deepened since Russia's 2022 invasion of Ukraine. [Dawn]
- Bank of Japan Ends Negative Rates Era: The Bank of Japan (BOJ) made a historic shift away from its unorthodox policy on Tuesday, ending eight years of negative interest rates and other measures aimed at reflating growth with massive monetary stimulus. Despite marking Japan’s first interest rate hike in 17 years, rates remain near zero due to a cautious approach amid a fragile economic recovery, analysts note. The yen tumbled to its lowest level of the year after Bank of Japan officials ended the world’s last negative policy rate, with currency traders focused on the gulf that remains between Japanese and US interest rates. The currency fell as much as 1.2% to touch 150.95 per dollar, the weakest mark since Nov. 16. [BR] [BBG]
- China Stocks Drop Amid Property Crisis: China stocks fell on Tuesday due to concerns about the deepening property crisis and soft domestic demand, despite signs of improvement in factory output. Traders remained cautious ahead of global central bank meetings, especially the US Federal Reserve's policy review, which suggested a slower-than-expected interest rate cut, maintaining pressure on China's yuan. [BR]
- Pakistan Ranks Second in Air Pollution: 2023 Report - In 2023, Pakistan ranked as the second most polluted country, with Lahore identified as the world's fifth most polluted city, according to the '2023 World Air Quality Report' by IQAir. [Dawn]
- Pakistan to Resume Afghan Deportations: Pakistan plans to resume deportations of Afghan migrants next month amid border tensions, with over 500,000 Afghans already fleeing after Islamabad's November deadline for undocumented migrants. The crackdown, justified by security and economic concerns, is also seen as a move to pressure the Taliban government over border security, according to analysts. [BR]
