- Federal Minister Rana Tanveer held the caretaker government responsible for over-importing wheat and pledged accountability.
- ARY News reported shocking details from the initial probe into the wheat import scandal, revealing that federal institutions are responsible for unnecessary imports.
- The Punjab government stated that mass urbanization reduces agricultural land, affecting food security and increasing food imports.
- The Foreign Office rejected rumors of Pakistan offering air bases to the United States for drone operations against Iran and Afghanistan, labeling the claims as "baseless and unfounded".
- Pakistan's CPI declined for the fourth consecutive month to 17.3% year-on-year in April 2024, down from 20.68% in the previous month, marking a significant improvement from the 38% peak in May 2023 and the lowest since May 2022.
- Bears continued their grip on the Pakistan Stock Exchange for the third straight session, dragging the KSE 100 index below 71,000 amid gloomy conditions.
AGRI-UPDATES - COMMODITIES, POLICY & DEVELOPMENTS
- Flour Price Drop: Consumer Savings - The reduction in flour prices in Islamabad has led to significant savings for consumers, with prices dropping by Rs 10-20 per kilogram. Market reports indicate reductions of Rs 270 for a 10 kg bag, Rs 600 for a 15 kg bag, and Rs 630 for a 20 kg bag, making flour more affordable for residents in the region. [Samaa]
- Wheat Over-Import Inquiry Initiated: Federal Minister Rana Tanveer held the caretaker government responsible for over-importing wheat and pledged accountability. Prime Minister Shehbaz Sharif formed an inquiry committee chaired by the Secretary of the Cabinet Division to investigate, emphasizing the importance of timely wheat procurement during a bumper crop year. [BR] [BR] [Dawn] [ET]
- Wheat Import Scandal: Shocking Details Revealed: ARY News reported shocking details from the initial probe into the wheat import scandal, revealing that federal institutions are responsible for unnecessary imports. Despite Punjab's reserves of 40.47 lakh metric tons, an additional 35.87 lakh metric tons were imported, causing an artificial shortage. [ARY]
- Cotton Rates in Sindh & Punjab: Cotton rates in both Sindh and Punjab ranged from Rs 19,500 to Rs 21,500 per maund, with phutti prices in Punjab observed between Rs 9,500 and Rs 10,000 per 40 kg. The Spot Rate held steady at Rs 20,000 per maund, while Polyester Fiber was priced at Rs 367 per kg. [BR]
- Pakistan's CPI Continues Decline: Pakistan's CPI declined for the fourth consecutive month to 17.3% year-on-year in April 2024, down from 20.68% in the previous month, marking a significant improvement from the 38% peak in May 2023 and the lowest since May 2022. Month-on-month, CPI decreased to 0.4% in April 2024, contrasting with a 1.7% increase in the previous month and a 2.4% increase in April 2023. [BR] [Dawn] [ET] [The News]
- TOMCL Expands to GCC Market: The Organic Meat Company Limited (TOMCL) has completed the first phase of its operational expansion project, aiming to meet demand in the Gulf Cooperation Council (GCC) market. This phase, disclosed in a notice to the Pakistan Stock Exchange (PSX), includes a 30% increase in chilled product capacity at its Gadap processing facility. [BR]
- Punjab Addresses Urbanization's Impact on Agriculture: The Punjab government stated that mass urbanization reduces agricultural land, affecting food security and increasing food imports. In response to the apex court's concerns about violations in land acquisition for a housing society, the government provided replies to eight questions. [BR]
ENERGY - WEATHER, WATER & POWER
- Six Entities Added to Privatization List: The federal government added six public sector entities, including Postal Life Insurance Company Limited and Utility Stores Corporation, to its active privatization list during the 218th meeting of the Privatization Commission Board chaired by Federal Minister Abdul Aleem Khan. [BR]
- Provinces Receive 53% Tax Revenue Share: During the first nine months of the current fiscal year, provinces received 53% of the total tax revenue collected by the Federal Board of Revenue (FBR), amounting to Rs 7,262.483 billion. This transfer increased by 29% compared to the same period last year, reaching Rs 3,815.148 billion. [BR]
- Petroleum Sales Drop Due to Smuggling: Petroleum product sales dipped 6% in April to a six-month low due to Iranian product smuggling and reduced furnace oil use for electricity generation. Overall oil sales for the fiscal year's first ten months fell 11% compared to the previous year. Excluding furnace oil, April's oil sales were down 3% from March and 2% from last year. [The News]
- Neelum-Jhelum Hydropower Shutdown: The Water and Power Development Authority (Wapda) has announced the complete shutdown of the 969-megawatt Neelum-Jhelum Hydropower Project for thorough inspection, valued at over Rs 500 billion. The decision follows a major operational issue detected a month ago, leading to significant pressure fluctuations in the project’s headrace tunnel. [Dawn] [ET]
- Burj Solar & PCL's Wind Power Partnership: Burj Solar and Power Cement Limited (PCL) have signed a 20-year BOOT agreement to develop a 9.6 MW wind power project, with Burj installing two 4.8 MW wind turbines at PCL's premises. This builds on their successful partnership, following Burj's 7 MW solar power plant for PCL in 2022. [BR]
- PIA Privatization Deadline Extended: Federal Minister Abdul Aleem Khan extended the EoI submission for Pakistan International Airlines by 15 days due to interest from 10 companies. He emphasized no further extensions would be given and highlighted the priority to privatize loss-making institutions, noting potential consortium formation by three local airlines with international companies. [BR]
- Addressing Chinese Concerns in CPEC: The Ministry of Foreign Affairs has asked the Power Division to address Chinese concerns, including delayed IPP payments and return on investment in CPEC projects. CPEC power project arrears have reached Rs 526 billion, with expectations of Rs 100 billion in Tariff Differential Subsidies and efforts to maintain IPP payables at Rs 300 billion. [BR]
PAKISTAN - ECONOMICS, POLITICS & SECURITY
- Army Chief Addresses Election Interference Concerns: Chief of Army Staff Gen Asim Munir addressed concerns of alleged military interference in recent elections, stating the military is aware of its limits and expects adherence to the Constitution. Speaking at a Pakistan Air Force cadets' passing-out parade, he highlighted the importance of upholding freedom of expression within constitutional bounds, cautioning against abusive speech. [Dawn] [ET]
- Senator Tarar Stresses Tax Reforms: Minister for Law and Justice Senator Azam Nazeer Tarar emphasized IMF recommendations to expand the tax base, curb electricity theft, and ensure good governance. He highlighted the unfairness of burdening taxpayers while others evade taxes, calling for practical steps to address financial challenges. [The News]
- Pakistan's Trade Deficit Narrows: Pakistan's trade deficit ballooned to $19.51 billion in the first 10 months of fiscal year 2023/24, with imports exceeding exports. Exports rose by 9.1% to $25.28 billion, while imports fell by 4.1% to $44.8 billion, narrowing the trade deficit by 17.1% compared to the same period last year. [BR] [Dawn] [ET] [The News]
- Pakistan's Foreign Reserves Show Modest Growth: The State Bank of Pakistan announced that the central bank's foreign exchange reserves increased by $25 million to $8.006 billion, while the country's total reserves grew by $36 million to $13.316 billion. Commercial banks' reserves also rose by $11 million to $5.310 billion. Additionally, the SBP received $1.1 billion from the IMF, bringing its reserves to $9 billion, as per a statement issued earlier. [Dawn] [The News]
- PM Shehbaz Urges Fiscal Updates: Prime Minister Shehbaz Sharif instructed Finance Minister Muhammad Aurangzeb to update provincial borrowing limits based on the latest GDP figures. He also urged for the prompt reconciliation and transfer of Sindh's due share under the National Finance Commission (NFC) for FY 2022-23 and 2023-24 before June 30, 2024. [BR]
- Pakistan Stock Exchange Bears Persist: Bears continued their grip on the Pakistan Stock Exchange for the third straight session, dragging the KSE 100 index below 71,000 amid gloomy conditions. Ahsan Mehanti of Arif Habib Corporation cited institutional profit-taking fueled by declining global crude oil prices and weak external trade data. [Dawn]
INTERNATIONAL - MARKET, POLITICS, SECURITY & DEVELOPMENT
- Israeli President Criticizes Campus Anti-Semitism: Israel’s president, Isaac Herzog, criticized US universities for campus unrest over Israel’s conflict in Gaza, accusing them of being "contaminated by hatred and anti-Semitism." Herzog expressed concern over a "dramatic resurgence in anti-Semitism" and condemned hostilities and intimidation against Jewish students on US campuses. [BR] [ET]
- Russian Missile Hits Odesa: Macron on Troop Assistance - A Russian ballistic missile hit a postal depot in Odesa, Ukraine, injuring 14 people. French President Macron stated that if Russia breaches Ukrainian front lines and Kyiv requests Western troop assistance, sending troops to Ukraine would be legitimate. Macron's earlier comments about possible troop deployment unsettled allies, though most, including Germany, stated they would not send forces. [BR] [Dawn] [ET] [Sky News]
- Taliban, Kazakhstan, Turkmenistan Agree on Afghan Hub: The Taliban, Kazakhstan, and Turkmenistan have agreed to build a logistics hub in western Afghanistan to boost regional exports, including Russian oil to South Asia. Taliban's commerce minister stated that technical teams will draft a formal agreement within two months, with all three countries investing in the project after six months of negotiations. [Dawn] [ET]
- OECD Raises Global Economic Forecast: The OECD upgraded its global economic outlook, citing faster growth due to strong US activity and quicker inflation convergence with central banks' targets. The global economy is expected to maintain a 3.1% growth rate seen last year, with a slight increase to 3.2% next year, according to the Organisation for Economic Cooperation and Development (OECD). [BR] [ET]
- OECD Raises Global Economic Forecast: The OECD upgraded its global economic outlook, citing faster growth due to strong US activity and quicker inflation convergence with central banks' targets. The global economy is expected to maintain a 3.1% growth rate seen last year, with a slight increase to 3.2% next year, according to the Organisation for Economic Cooperation and Development (OECD). [BR] [ET]
- Pakistan Denies Airbase Offer to US: The Foreign Office rejected rumors of Pakistan offering air bases to the United States for drone operations against Iran and Afghanistan, labeling the claims as "baseless and unfounded." Spokesperson Mumtaz Zahra Baloch emphasized Pakistan's stance of not providing air bases to foreign governments for operations against other countries. [BR]
- Sindh Cabinet: Plates, Health, Rangers - In a Sindh Cabinet meeting chaired by Chief Minister Syed Murad Ali Shah, key decisions were made, including introducing Premium Number Plates for vehicles and allocating funds for an MRI system for SIUT Sukkur. Additionally, Rangers deployment in Karachi was extended, and funds were released for retired civil servants' dues. [BR]
- Opinion: Climate Change, Plastic Pollution, & Waste Management - “The current legislation needs to be amended accordingly to overall enhance the scope of legislation to the entire country, and to bring greater role of the government in not just monitoring primarily but also in providing meaningful level of governance and incentive structures” - By Dr Omer Javed [BR]
