Wheat Sowing Target, Rice Export Decline, Textile Sector Export, Reduced LNG Imports, China Covid.

TOPLINE

• Almost 72% of the wheat sowing target in the Punjab province has been achieved as the staple crop has been cultivated on 16.5 million acres of the area targeted for sowing this crop.
• Pakistan’s basmati rice exports are set to decline in the ongoing fiscal year.
• The value-added textile sector on Thursday stepped up to seek an immediate release of an estimated Rs 300 billion of sales tax refunds worth, which the federal government continues to hold back. Rs 60.7 billion was the export value of readymade garments in Oct 2022, up 19% against Rs 51.06 billion in Oct 2021.
• The National Assembly Standing Committee on Foreign Affairs was informed that following the UN Flash appeal, Pakistan has received $3.4 billion for flood relief operations and reconstruction.
• Rs 65.4 billion was the import value of liquified natural gas (LNG) in Oct 2022, down 19.76% compared to Rs 81.6 billion in Oct 2021, according to PBS.
• The State Bank of Pakistan (SBP) has shown its inability to set up a $400 million fund or make advance payments for smooth oil imports due to the thin foreign exchange reserves.
• China on Friday reported another record high of daily COVID-19 infections, while Thursday's new local COVID-19 infections set a daily record for a second consecutive day intensifying China’s battle with COVID.

COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE

• Wheat Sowing Target: Almost 72% of THE wheat sowing target in the Punjab province has been achieved as the staple crop has been cultivated on 16.5 million acres area targeted for sowing this crop, said Director General Agriculture (Extension) Punjab Dr Anjum Ali Buttar. While talking to APP here on Thursday, he said that wheat growers were working with greater zeal this year because of the efforts of the agriculture department and incentives offered by the government. He elaborated that the government announced a support price of Rs 3000 per 40 kg of wheat. [The Nation] [UP]
• Basmati Export: That Pakistan’s rice exports are all set to decline massively in the ongoing fiscal now appears to be a foregone conclusion. Earlier this month, this space highlighted USDA’s revised assessment that rice exports out of Pakistan may decline by as much as 20 % during the marketing year 2022-23, on the back of flood-hit disaster in Sindh and Balochistan which led to substantial losses of the non-basmati crops. (For more, read: “Rice stocks: what does bank borrowing suggest”, by BR Research published on Nov 11, 2022). [BR]
• Rice Millers Reject Power Tariffs: The Sindh-Balochistan Rice Millers and Traders Association (SBRMTA) has rejected the newly imposed electricity tariff and warned if the government does not take it back on or before Dec 18, 2,500 rice mills in the two provinces will ground operations to a halt in protest. [Dawn]
• Sugar Export: Deadlock between the government and the sugar mills over permission for sugar export continued on Thursday, as the authorities concerned decided to go for a third-party audit of the available stock in the country much to the dismay of the mill owners. [ET]
• Kinnow Exporters: All stakeholders in kinnow production and exports have sought the government’s assistance in coping with the emerging challenges because of climate change and extreme weather events. Kinnow exports are expected to begin in the first week of December while the export price has been set at Rs2,000 per maund, according to a notification of the district administration, because of lower output. [ET]
• Gold Prices: Gold prices on Thursday further inched up on the local market, traders said. They grew by Rs 400 to Rs 159,600 per tola and Rs 343 to Rs 136,831 per 10 grams.? Gold prices on the world market were quoted at $1756 per ounce. Silver was available for Rs 1710 per tola and Rs 1466.04 per 10 grams, traders said. [BR]
• Textile Sector: The value-added textile sector on Thursday stepped up to seek an immediate release of an estimated Rs 300 billion of sales tax refunds worth, which the federal government continues to hold back, causing a liquidity disaster for the exporters to carry on production amid a political and economic crisis. [BR]
• Garments Export: Rs 60.7 billion was the export value of readymade garments in Oct 2022, up 19% against Rs 51.06 billion in Oct 2021. [ET]

AGRI-INPUTS, WEATHER, WATER & POWER

• Post Flood: The National Assembly Standing Committee on Foreign Affairs was informed that following the UN Flash appeal, Pakistan has received $3.4 billion for flood relief operations and reconstruction. The Punjab government is providing subsidies to the farmers of flood-affected areas on wheat seed and other agricultural accessories to ensure food security in the country through better yielding from the next crop. [BR] [Dawn] [UP]
• Urea Import: The Economic Coordination Committee (ECC) of the Cabinet has directed the Trading Corporation of Pakistan (TCP) to explore options for fresh tendering/G2G basis of 40,000 MTs of urea to meet the requirements. [BR]
• Subsidy on Tube Wells: Prime Minister Shehbaz Sharif has stated that the government is giving subsidies on tube wells to farmers in flood-hit areas. [BR]
• Fuel Import: Rs 65.4 billion was the import value of liquified natural gas (LNG) in Oct 2022, down 19.76% compared to Rs 81.6 billion in Oct 2021, according to PBS. [ET]

AGRI UPDATES & PAKISTAN POLICY

• Forex Reserves: The total liquid foreign exchange reserves held by State Bank of Pakistan (SBP) decreased by $134 million to $7.825 billion during the week ended on November 18, 2022 due to external debt repayment. According to the SBP data, released Thursday, the total liquid foreign exchange reserves held by the country stood at $13.645 billion as of November 18, 2022. [BR]
• SBP Fails to Set Up Oil Fund: The State Bank of Pakistan (SBP) has shown its inability to set up a $400 million fund or make advance payments for smooth oil imports due to the thin foreign exchange reserves amid the Petroleum Division’s warning that diesel stocks may dry up late next month. [ET]
• Reko Diq Project: The Supreme Court has said that the Reko Diq is a national project and is for the development of the Balochistan province. The chief justice stated that this is a national project and is for the development of Balochistan. He said there is no financial liability on the part of the provincial government but on the federal government. [BR]

INTERNATIONAL – OVERVIEW & MARKET OUTLOOK

• India’s Cotton Exports Stall: Indian traders are struggling to export cotton despite higher production as farmers are delaying sale of their harvest hoping for higher prices in coming months, industry officials told Reuters. [Dawn]
• China Covid Cases: China on Friday reported another record high of daily COVID-19 infections, as cities across the country enforce measures and curbs to control outbreaks. Thursday's new local COVID-19 infections set a daily record for a second consecutive day, beating a figure set in mid-April, when the commercial hub of Shanghai was crippled by a citywide lockdown of its 25 million residents that lasted two months. [Reuters] [CNN] [CNBC]
• Brazil Election: Brazil's top electoral authority on Wednesday threw out a challenge by President Jair Bolsonaro′s party against his election defeat and fined it more than $4 million for bringing the case “in bad faith.” [ET] [The News] [The Guardian]
• Malaysia Post-Election: Malaysia's veteran opposition leader Anwar Ibrahim will be the country's new prime minister, after a turbulent 25 year pursuit for the job that saw him jailed twice. Promising to give up his salary as PM, he pledged to fight corruption and focus on the economy. The new PM was sworn in by the king on Thursday afternoon. The appointment ends days of post-election deadlock following inconclusive elections. [ET] [The Nation] [BBC] [CNBC]

PAKISTAN - REMAINDERS

• Opinion: Conceptual Poverty of Foreign Policy - “Foreign policy plays an important role in attracting foreign investment, increasing exports, reducing poverty and setting the direction of the economy. However, our foreign policy has predominantly revolved around partnering in regional conflicts and participating in defense-related matters.” - By Huzaima Bukhari, Dr. Ikramul Haq and Abdul Rauf Shakoori [BR]
• Pakistan is Yet to Develop Infrastructure for 5G Launch, head of GSMA Asia Pacific said. [Dawn]