PAR News Bulletin, Thurs, 4 August, 2022

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PAR News Bulletin, Thurs, 4 August, 2022
PAR News Bulletin, Thurs, 4 August, 2022
August 4, 2022

TOPLINE

  • The rupee continued to recover in the interbank market on Thursday, extending its gains against the dollar for the fifth consecutive session. By 12:55pm today, the local currency had gained Rs 4.6 against the dollar to reach Rs 224.2.
  • The federal government on Wednesday disbursed compensation cheques among a ‘few’ rain-hit people, vowing that all those who lost loved ones and suffered losses during the devastating monsoon rains would be compensated.
  • Sindh Chief Minister Murad Ali Shah said that with the launching of the 330 MW Hubco power plant, we have successfully added 990 MW coal-fired power to the National Grid.
  • The government has signed an agreement with the OPEC Fund for International Development for the provision of $72 million to the country for the Mohmand Dam Hydropower Project.
  • The Federal Board of Revenue (FBR) has revised customs tariff on the import of certain items from the SAARC member states. Free Trade Agreement between Pakistan and Sri Lanka, imports from Malaysia, Turkey and Iran Preferential Trade Agreement and Indonesia-Pakistan Preferential Trade Agreement from July 1, 2022.
  • Turkey’s annual inflation rate stabilised in July at just under 80%, helping support President Recep Tayyip Erdogan’s pledges that runaway price increases would soon stop.


COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE

  • Cotton Market: The spot rate decreased by Rs 700 per maund and closed at Rs 18,500 per maund. The rate of cotton in Sindh is in between Rs 16,400 to Rs 17,000 per maund, and in Punjab is in between Rs 18,300 to Rs 18,700 per maund. The rate of Phutti in Sindh is between Rs 6,000 to Rs 7,000 per 40 kg. The rate of Phutti in Punjab is between Rs 8,000 to Rs 10,000 per 40 kg, and in Balochistan is in between Rs 16,700 to Rs 16,800 per maund. [BR]
  • Rupee Recovers: The rupee continued to recover in the interbank market on Thursday, extending its gains against the dollar for the fifth consecutive session. By 12:55pm today, the local currency had gained Rs 4.6 against the dollar to reach Rs 224.2, according to the Forex Association of Pakistan (FAP). [Dawn] [ET]
  • Cotton Yarn export: Rs 19.2 billion was the export value of cotton yarn in June 2022, up 1.8 percent compared to Rs 18.8 billion in June 2021. [ET]
  • Tea Demand: Pakistan has huge potential to become self-sufficient in the tea sector. If planted on an additional 2,000 hectares of land offered by the government and invested by private companies, it can meet 95% of the national demand, said Dr Abdul Waheed, Director of National Tea and High Value Crop Research Institute, Pakistan Agriculture Research Council (PARC) said in an interview with the China Economic Net (CEN). [ET]
  • Gold Import: Rs 744 million was the import value of gold in June 2022, up 919% compared to Rs 73 million in June 2021, according to the Pakistan Bureau of Statistics. [ET]


AGRI-INPUTS, WEATHER, WATER & POWER

  • Flood Update: Prime Minister Shehbaz Sharif ordered round-the-clock monitoring of rescue, relief, and rehabilitation measures in the flood-affected areas of Balochistan. He also ordered an update regarding the relief and disbursement of funds to the flood victims through the submission of a report every 48 hours. The federal government on Wednesday disbursed compensation cheques among a ‘few’ rain-hit people, vowing that all those who lost loved ones and suffered losses during the devastating monsoon rains would be compensated. The KPK Provincial Disaster Management Authority (PDMA) has released an additional fund of Rs 305 million to the relief accounts of 23 districts to deal with any untoward situation during the current monsoon season. [BR] [Dawn] [Dawn] [ET]
  • Electricity & Gas tariffs: All Pakistan Textile Mills Association (APTMA) has appreciated Federal Tax Ombudsman (FTO) Dr Asif Mahmood Jah for providing prompt relief to export oriented sectors against the inordinate delay caused by Export Oriented Sector Registration Cell (ESRC) of the Federal Board of Revenue (FBR) in processing cases of export units for electricity and gas tariff. [BR]
  • Coal-Fired Power Project: Sindh Chief Minister Syed Murad Ali Shah Wednesday said that with the launching of 330 MW Hubco power plant, we have successfully added 990 MW coal-fired power to the National Grid, which is not only our great success but is the realisation of Mohtarma Benazir Bhutto’s dream of producing coal-fired energy to empower Pakistan with cheapest and indigenous source of energy. [BR] [Dawn]
  • Dams Construction: Provincial Irrigation Minister Jam Khan Shoro on Wednesday informed the Sindh Assembly that 116 small dams had been constructed in the province and work was going on to construct 64 other small dams. [Dawn]
  • Mohmand Dam: The government has signed an agreement with the OPEC Fund for International Development for the provision of $72 million to the country for the Mohmand Dam Hydropower Project. [ET]


AGRI UPDATES & PAKISTAN POLICY

  • Action Against PTI: Pakistan Democratic Movement (PMD) chief Maulana Fazlur Rehman on Wednesday said that all the parties in the ruling alliance have recommended to the government to take swift action against the Pakistan Tehreek-e-Insaf (PTI) and its leadership in the wake of the Election Commission of Pakistan (ECP)’s verdict on the prohibited funding case. Disqualification reference to be filed against ex-PM. PDM wants the PTI chairman held, placed on ECL. [BR] [Dawn] [Dawn] [ET]
  • ECP No-Protests: Interior Minister Rana Sanaullah on Wednesday warned the Pakistan Tehreek-e-Insaf (PTI) leaders that strict action would be taken against them if they tried to enter the Red Zone during their scheduled protest against the Election Commission of Pakistan (ECP) today (Thursday). [BR]
  • Spectrum Auction: The government on Wednesday approved the auction of new spectrum in the 2,100 megahertz (MHz) band for a period of 10 years that may fetch around $96 million for every 5 MHz sale, changing the terms of sale that may anger three telecom giants. [ET]
  • Imports Tariff: The Federal Board of Revenue (FBR) has revised customs tariff on the import of certain items from the Saarc member states, Free Trade Agreement between Pakistan and Sri Lanka, imports from Malaysia, Turkey and Iran Preferential Trade Agreement and Indonesia-Pakistan Preferential Trade Agreement from July 1, 2022. [BR]
  • Japan New Grant: The government of Japan has agreed to provide new grant assistance worth 1,236 million Japanese yen (equivalent to around 9.062 million USD/around 1,855 million PKR) for upgrading sewerage and drainage services in Multan. [BR]
  • Excelerate Energy MoU: Engro Eximp FZE, a subsidiary of Engro Corporation, announced today that it has entered into a Memorandum of Understanding (MoU) with Excelerate Energy, Inc. (NYSE: EE) (Excelerate), a leading provider of flexible LNG infrastructure solutions around the world, related to the development of a private sector gas marketing business in Pakistan. [BR]
  • Imports for Karachi in FY22: The Sindh government has collected a whopping Rs80.4 billion on account of infrastructure cess on imports from Karachi during the financial year 2022. But, the irony of the fact is that the Pakistan People’s Party-led Sindh government has allocated mere Rs 2.5 billion for the restoration of rain-affected infrastructure of Karachi – the mega city, and revenue engine of Pakistan. [BR]
  • 200 Year Old Trees: At least seven suspects involved in cutting down centuries-old trees and transporting them to the cities have been arrested in the Saleh Patt town of Sukkur district on Wednesday. [ET]
  • Accelerate Export Payments: Businessmen have demanded an amendment to the export proceeds rule to accelerate export payments. This would buttress foreign exchange reserves of the country and help prevent further volatility of the rupee against the dollar. [ET]


INTERNATIONAL – OVERVIEW & MARKET OUTLOOK

  • Taliban on Zawahiri: Top leaders of Afghanistan’s Taliban were holding discussions on Wednesday about how to respond to a US drone strike in Kabul that the United States said killed al Qaeda leader Ayman al-Zawahiri, three sources in the group said. [BR] [Dawn]
  • India Trade w/ Russia & Sri Lanka: India expects bilateral trade worth $8-9 billion with Russia and Sri Lanka in the next two months after it allowed international trade in rupees, India’s trade secretary said. [BR]
  • Sri Lanka Crisis: Sri Lanka faces a “great danger” with fuel shortages sparked by its unprecedented economic crisis set to continue at least till the year’s end, President Ranil Wickremesinghe warned Wednesday. [BR]
  • Iran Nuclear Talks: Top Iranian and US officials will resume talks in Vienna this week on reviving the 2015 nuclear pact, officials from both countries said on Wednesday, though they played down any expectations of a breakthrough. [BR] [Dawn]
  • Grain shipment from Ukraine: The first shipment of grain from Ukraine since the Kremlin’s invasion five months ago sailed through Istanbul on Wednesday under a landmark deal designed to help alleviate a global food crisis sparked by the war. [Dawn]
  • China-Taiwan tensions: Taiwan struck a defiant tone on Wednesday as it hosted US House Speaker Nancy Pelosi, with a furious China gearing up for military exercises dangerously close to the island’s shores in retaliation for the visit. [Dawn] [The News]
  • Bangladesh Loan World Bank: Bangladesh is seeking $2 billion from the World Bank and the Asian Development Bank (ADB) amid efforts to bolster its foreign exchange reserves, Bloomberg News reported on Wednesday. [IB]
  • Inflation in Turkey: Turkey’s annual inflation rate stabilised in July at just under 80%, official data showed on Wednesday, helping support President Recep Tayyip Erdogan’s pledges that runaway price increases would soon stop. [ET]


PAKISTAN - REMAINDERS

  • Opinion: Energy sector needs to innovate competitively - “Due to a severe discrepancy at the policy level, there are no simple or quick fixes for the power deficit that the nation is currently experiencing. Although there are domestic alternatives, policymakers have been ignoring them for more than three decades.” - By Muhammad Sheroz Khan Lodhi [BR]
  • Opinion: The default response - “BEFORE the recent by-election in Punjab, the present government seemed to be coasting towards completing its constitutionally mandated term. The results of the by-elections not only surprised everyone, but have upended the balance of power in Pakistan’s most-populous province.” - By Aqdas Afzal [Dawn]

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