- The distribution of wheat by the Sindh food department, among roller flour mills and owners of chakkis was hit by discrepancies, putting consumers under an additional financial burden.
- A significant decrease in Pakistan’s cotton production by 41% is being forecast. The total production of cotton is expected to be around 50 lac bales where around 65 lac bales of cotton will have to be imported.
- The Economic Coordination Committee (ECC) of the Cabinet has approved an increase in petroleum levy (PL) from Rs 30 to Rs 50 per litre on RON 95 and above from November 16.
- PTI Chairman Imran Khan has said that his party’s ‘long march’ will resume on Tuesday from Wazirabad, where he will join the march in Rawalpindi once it reaches there in 10 to 14 days.
- Pakistan on Friday said to have secured about $13 billion in additional financial support from two traditional friends — about $9 billion from China and over $4 billion from Saudi Arabia. PSX rose 318 points on the back of this news on Monday.
- Global leaders met in Egypt on Monday at the climate summit COP27, tasked with taming the terrifying juggernaut of global warming.
COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE
- Wheat: The working of Sindh’s food department is once again under a cloud. The distribution of wheat by department among roller flour mills and owners of chakkis was hit by discrepancies, putting consumers under an additional financial burden in these days of never-ending inflation. [Dawn]
- Wheat Cultivation in Arid Areas: The Punjab Agriculture Department, just before the start of wheat cultivation, has urged farmers to cultivate wheat, especially in arid areas to achieve bumper production of the golden grains. Turkey's Ministry of Culture and Tourism subsidiary agency TIKA in collaboration with Sindh Agriculture University (SAU) would provide free wheat seed to small farmers with one to 10 acres of land in eight flood-affected districts of Sindh. [BR] [Dawn]
- Cotton Review: Bullish trend prevailed in the local cotton market under the influence of an international cotton market. A significant decrease in cotton production by 41% is being forecast. The total production of cotton is expected to be around 50 lac bales. Around 65 lac bales of cotton will have to be imported. At present, the import contracts of about 48 lac bales have already been signed. [BR]
- Olive Cultivation: Olive cultivation and oil production is an area in Pakistan’s agro-based economy with untapped potential which can help reduce foreign exchange expenditure on imported edible oil, according to local farmers. [ET]
AGRI-INPUTS, WEATHER, WATER & POWER
- Reconstruction of Flood-Hit Roads: Sindh Chief Minister Syed Murad Ali Shah has approved Rs46.3 billion for the reconstruction of 71 roads damaged due to heavy rains and floods in the province. [Dawn]
- Petroleum Levy: The Economic Coordination Committee (ECC) of the Cabinet has approved an increase in petroleum levy (PL) from Rs 30 to Rs 50 per litre on RON 95 and above with effect from 16th November 2022. The meeting of the ECC presided over by Finance Minister Ishaq Dar approved the increase in PL on HOBC on a summary moved by the Federal Board of Revenue (FBR) on Thursday. [BR]
- Furnace Oil: Pakistan State Oil (PSO) and local refineries have raised serious concerns about the slow upliftment of furnace oil by the power plants, which may lead to the closure of refineries. This warning has been issued by the Director General (Oil) Ministry of Energy (Petroleum Division), Abdul Jabbar Memon, in a letter to the Power Division. [BR]
- Gas Shortage in Winter: The government is to exercise gas load management for winter where household consumers would be prioritised; however, the industries [other than five zero-rated industries] including cement, CNG, and fertiliser sectors will face significant gas shortages. [The News]
- Iranian Gas: The government is reluctant to move ahead with buying gas from Iran, fearing international sanctions and ready to proceed forward with the TAPI Pipeline instead to overcome the energy crisis in the country. [ET]
- Thar Power Plant: The government has decided to allow the effectiveness of the Power Purchase Agreement (PPA) of 1320-MW of Shanghai Electric Power Company Limited at Thar from August 27, 2019, sans Financial Closure (FC) as the sponsor has almost completed the project with equity of $ 2 billion, well-informed sources in CPPA-G told Business Recorder. [BR]
- Rail Coaches from China: China has dispatched 46 out of 230 new high-speed passenger coaches to Pakistan Railways by sea which will take approximately three weeks to reach Karachi port. [Dawn]
- Polluted City: With the onset of the winter, the smog and air quality situation in Lahore continues to get worse day by day. It was marked as the city with the worst air quality in the whole world once again on Saturday. [Dawn]
AGRI UPDATES & PAKISTAN POLICY
- PTI Long March: Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan has said that his party’s ‘long march’ will resume on Tuesday (tomorrow) from Wazirabad where he had narrowly escaped an assassination attempt last Thursday. Imran Khan will join the march in Rawalpindi once it reaches there in 10 to 14 days. [BR] [ET]
- Agri Package: Serious reservations against the recently announced package for the agriculture sector and subsidy for concessional electricity for export-oriented sectors prompted the International Monetary Fund (IMF) to seek a reversal of both decisions by or compensate through new tax measures (mini-budget), well-informed sources in the Finance Division told Business Recorder. [BR]
- Financial Support: Pakistan on Friday said to have secured about $13 billion in additional financial support from two traditional friends — about $9 billion from China and over $4 billion from Saudi Arabia — on top of assurances for about $20 billion in investments. The dollar remained unchanged at Rs 227.75 on Saturday in the open market, unmoved by Finance Minister Ishaq Dar’s guarantee a day ago that the country had secured about $13 billion in additional financial support from two friendly countries, on top of assurances for about $20 billion investments. Stocks jumped up 318 points on Monday based on this news. [Dawn] [Dawn] [Dawn]
- Fiscal Debt: As the country’s fiscal deficit surged by 43% in the first quarter of the current fiscal year, the government on Friday decided to increase Petroleum Development Levy (PDL) by about 67% (Rs 20 per litre) on top quality petrol used in luxury vehicles. [Dawn]
- Swati Alleges Receiving Obscene Video: Pakistan Tehreek-i-Insaf (PTI) Senator Azam Swati, who has allegedly been on the receiving end of the wrath of law enforcement agencies over his tweets against the army chief, broke down on Saturday while sharing ghastly allegations of how his family had been sent an obscene video in an attempt to cow him into submission. [Dawn]
INTERNATIONAL – OVERVIEW & MARKET OUTLOOK
- US Midterm Elections: A sputtering US stock rally faces a double-dose of potentially market-moving events next week: US midterm elections and inflation data that could influence the Federal Reserve’s monetary policy. Americans vote on Tuesday to elect all 435 representatives of the House and 35 of the 100-seat Senate. These midterm elections are held near the midpoint of a president’s four-year term in office. The results determine if the incumbent remains effective in the remaining two years of his tenure or becomes a lame-duck occupant of the White House. [BR] [Dawn] [EN]
- Oil Prices: Oil prices rose by more than $4 on Friday before paring some gains amid uncertainty around future interest rate hikes by the US Federal Reserve, while a looming EU ban on Russian oil and the possibility of China easing some Covid restrictions supported markets. [Dawn]
- Egypt’s COP27 Climate Summit: Leaders buffeted by the geopolitical crosswinds of war and economic turmoil meet in Egypt on Monday at a climate summit tasked with taming the terrifying juggernaut of global warming. A new UNDP report on COP27 even predicts the number of ‘extremely hot days’ could rise to 179 by the year 2099. Meteorologists note spring has nearly vanished, and extreme heat waves are becoming all too common. [Dawn] [Dawn] [Reuters] [WP] [Dawn] [ET] [ET] [ET]
- Russia Ukraine War: Russia pushed ahead on Friday with a civilian pullout from Ukraine’s Kherson region amid a mounting counter-offensive, with President Vladimir Putin saying residents must be “removed” from danger zones. [Dawn]
- Karachi IT Park to Provide 20,000 Jobs After Completion for 200 IT companies. [Dawn]
- Pakistan Through to T20 World Cup Semis after Netherlands shock South Africa. [BR] [ET]
- Twitter Layoffs Fuel Misinformation Concerns as new $8 verification blue tick rolls out. [Dawn]
- Opinion: The Distant Dream of Affordable Housing - “Life in Karachi is often compared to big metropolitan cities around the world. Many people migrate here to pursue their dreams. In a city which people move to in droves, it is easy to be forgotten and be invisible. Maybe that is why their stories and the struggles of people searching for a decent abode often go unheard or ignored.” - By Anum Mufti | Mansoor Raza [Dawn]
- Opinion: A Crisis Like no Other - “The assassination attempt on PTI leader Imran Khan has plunged the country into chaos at a time when tensions between the opposition and government were already spiralling out of control. Such violence is condemnable and unacceptable. It should have no place in the country whose tortuous history has seen assassinations of political leaders in the past.” - By Maleeha Lodhi [Dawn]
- Climate Change: Time is Running Out - “The recent flash floods, with global warming and the resultant climate change holding primary responsibility, affected 33 million Pakistanis and is estimated to run losses of over $30 billion.” [ET]
