PAR News - Thurs, 16th Mar 2023

TOPLINE

• The Government increased the prices of all petroleum products, except LDO, by Rs 13/liter for the next fortnight.
• Fauji Foundation's subsidiaries invested Rs 11.7 billion in Fauji Foods Limited, raising the group's equity investment in the dairy business to Rs 30 billion.
• The Economic Coordination Committee (ECC) of the Cabinet has decided to supply indigenous gas to urea fertilizer plants till 31st May 2023 for urea production instead of import to meet the urea fertilizer demand for Kharif Crop 2023.
• US announces $4.5 million fertilizer project for Pakistani farmers. Also announces new energy programs, including a $500k project to restore electricity in flood-stricken areas and discussions on phasing out coal-fired power plants, private sector investment in renewables, wind projects, and continued LNG supply.
• ADSJ Judge Zafar Iqbal said on Thursday that he would stop the Islamabad police from arresting PTI Chairman Imran Khan in the Toshakhana case if the ex-premier surrendered in court. Moreover, PM Shehbaz Sharif said the federal government was committed to fulfilling its constitutional obligation of holding elections.
• US stocks dropped as turbulence at Credit Suisse revived fears of a banking crisis.
• Turkiye will continue discussions to extend a deal which allows grain shipments from Ukraine’s Black Sea ports for 120 days rather than 60 days. Flash floods killed at least 14 people living in tents and container housing across Turkiye’s quake-hit region on Wednesday, piling more pressure on Turkish President Erdogan.

COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE

• Fauji Group Invests in Dairy: Earlier this year, the Securities & Exchange Commission allowed Fauji Foundation’s subsidiaries to inject additional equity of Rs 11.7 billion in Fauji Foods Limited (FFL), the dairy and foods arm of Pakistan’s largest business conglomerate. The step will now take the group's equity investment in the dairy business to Rs 30 billion, in just seven years since former principals – the Hayat Noon family of Shahpur – sold controlling shares in the company - 75% - to the Fauji group. [BR]
• Pak-Uzbekistan Trade Agreement: The Federal Board of Revenue (FBR) has allowed concessionary/ reduced rates of customs duty, additional customs duty and regulatory duty on the import of goods from Uzbekistan from March 13, 2023 under the Pakistan—Uzbekistan Preferential Trade Agreement (PTA). [BR]
• PRIAT Agriculture Project: The Punjab Resilient and Inclusive Agriculture Transformation (PRIAT) project aims to help the agriculture sector reduce the adverse effects of climate change, promote profitable agriculture, and install modern irrigation systems. With a total cost of Rs. 68 billion, the World Bank is providing support of more than Rs. 45 billion to benefit over 1.33 million rural farm families, improve water productivity by 20%, and create employment opportunities for more than 5000 rural youth. Additionally, the spokesperson of the Punjab Food Department declared that government-subsidized wheat is of standard quality and that there is no shortage of flour in any area of Lahore. [BR]

AGRI-INPUTS, WEATHER, WATER & POWER

• Petrol Prices Surge: The government on Wednesday increased the prices of all petroleum products, except the insignificant light diesel oil (LDO), by up to Rs 13 per liter for the next fortnight. The finance ministry said the per-liter price of petrol had been increased by Rs 5; the price of petrol has now been fixed at Rs 272 per liter and that of HSD by Rs 13; the price of HSD has now reached Rs 293 per liter. [Dawn] [ET]
• SOPs for Load-Shedding: Power Planning and Monitoring Company (PPMC) has issued standard procedures for load shedding during Ramadan, which includes a Zero Load Management (LM) policy during Sehr and Iftar/Taraweeh periods. The policy will remain in effect on Category –l to Cat-VI feeders for the rest of the day, and Complaint Centres should be fully operational at all levels via landline and cell phones. [BR]
• Iran-Pakistan Electricity Deal: Minister for Power Khurram Dastgir Khan has not disclosed the rate of 100-MW electricity to be purchased from Iran for Gwadar. [BR]
• PSO Seeks Cash Arrangement: While claiming it is on the brink of collapse, Pakistan State Oil (PSO), state-owned energy marketing company, has submitted “cash arrangement formula” to the government including imposition of Rs 10/ liter levy on sale of Mogas (petrol) and HSD with an impact of Rs 100 billion to be paid to it against LNG to avoid imminent default, sources close to Minister of State for Petroleum told Business Recorder. [BR]
• China to Assist Seismic Centre: China is likely to provide financial assistance in setting up a seismic center in Quetta, said reliable sources. The center would calculate underground energy, earthquake waves arising out of it and tsunami monitoring, they added. [BR]
• Gas Supply for Fertilizer: The Economic Coordination Committee (ECC) of the Cabinet has decided to supply indigenous gas to urea fertilizer plants till 31st May 2023 for urea production instead of import to meet the urea fertilizer demand for Kharif Crop 2023. [BR] [Dawn] [ET] [The Nation]
• Handover of Electricity Companies: Prime Minister Shehbaz Sharif has formed a committee to finalize the action plan for handing over electricity distribution companies to provinces. The move is aimed at reducing the losses due to electricity theft, non-recovery of billed amounts, and line losses. [BR]
• KWSB Not Handing Over to Army: The Sindh assembly was informed that the Karachi Water and Sewerage Board (KWSB) was under the administrative control of the Sindh government and handing it over to the army was ‘out of question’. [Dawn]
• Police Reinforcements for Kutcha Areas: Sindh police chief has decided to deploy 500 personnel of the Rapid Response Force in the Sukkur and Larkana ranges to assist law enforcement in the kutcha areas and marshlands where bandits have been terrorizing local populations. The Central Investigation Agency (CIA) will be responsible for arrest and investigation, including those involved in kidnapping for ransom cases. [ET]
• US Funds Pakistan's Fertiliser Project: The United States announced on Tuesday a $4.5 million Fertiliser Right project to be implemented over the next 4 years to help Pakistani farmers enhance fertilizer use efficiency. [Dawn]
• Pakistan-US Energy Talks: The US and Pakistan held an Energy Security Dialogue where they discussed the phase-out of coal-fired power plants and private sector investment in renewables, as well as increasing LNG supply. The countries also reaffirmed their commitment to the US-Pakistan "Green Alliance" framework and announced new programs to advance energy cooperation, including a $500,000 project for electricity infrastructure restoration, electric vehicle research, and women's leadership in renewable energy. [ET] [BR]

AGRI UPDATES & PAKISTAN POLICY

• Toshakhana Case: Additional District and Sessions (ADSJ) Judge Zafar Iqbal said on Thursday that he would stop the Islamabad police from arresting PTI Chairman Imran Khan in the Toshakhana case if the ex-premier surrendered in court. Shipping containers were placed outside the main entrance of party chairman Imran Khan’s Zaman Park residence in Lahore — ostensibly by PTI supporters. The Lahore High Court (LHC) on Wednesday directed the police to halt operations outside the residence of former Prime Minister Imran Khan at Zaman Park till March 16 (today) 10 am morning initiated a day earlier to arrest Imran in Toshakhana case. GB force was said to be protecting Imran, alleges minister. Punjab IGP denies any such confrontation. Ministers say few personnel attached to CM, ministers’ protocol present in Lahore. [Dawn] [Dawn] [BR] [Dawn] [ET] [DP] [The Nation] [Dawn] [ET] [ARY] [Geo]
• Elections Schedule: Prime Minister Shehbaz Sharif said on Wednesday the federal government was committed to fulfilling its constitutional obligation of holding elections and would act as per the decision of the Election Commission of Pakistan (ECP). [ET] [PT]
• US Diplomat's Statement Irks Pakistan: Former US special envoy on Afghanistan, Zalmay Khalilzad, has caused controversy by warning Pakistan against arresting former Prime Minister Imran Khan amidst the current political crisis in the country. Khalilzad suggested parliamentary elections in June and the development of a specific plan by the main political parties to stabilize the country, drawing a strong reaction from the Foreign Office. [ET]
• Punjab Govt's Revenue Record: The Punjab government has collected record tax revenue of Rs 27 million in lieu of ‘weights and measures’ fee through e-Pay Punjab, an online system for payment of government taxes. [BR]
• Russia-Pakistan Collaboration Grows: Russian Federation Consul General in Karachi Andrey V Fedorov has said that despite the imposition of western sanctions, collaboration and partnership between Russia and Pakistan are set to grow and flourish. [ET]
• Pakistan's Bond Price Falls: The price of Pakistan’s US dollar-denominated international bond continued to fall for the sixth consecutive working day and its yield spiked 16% to a record high at almost 106% in the global market. [ET]
• Cloud Computing Growing in Asia: Public cloud adoption is on the rise in Asia and Pakistan, driven by benefits like cost savings, scalability, agility, and flexibility. Reports from IDC and Gartner suggest that public cloud spending in the Asia-Pacific region will grow rapidly over the next few years, while the cloud computing market in Pakistan is expected to reach $1.5 billion by 2023, driven by a CAGR of 19.1% from 2017 to 2023, according to a report by Allied Market Research. [ET]

INTERNATIONAL – OVERVIEW & MARKET OUTLOOK

• Oil Prices Hit One-Year Low: Oil prices plunged more than $5 a barrel on Wednesday to their lowest in more than a year as unease over Credit Suisse spooked world markets and offset hopes of a Chinese oil demand recovery. [BR] [Dawn]
• US Stocks Drop: US stocks dropped on Wednesday as turbulence at Credit Suisse revived fears of a banking crisis, eclipsing bets of a smaller interest rate hike in March following weak economic data. Credit Suisse shares plunged to the lowest level on record after the Swiss lender’s top shareholder, Saudi National Bank, ruled out adding to its stake. [Bloomberg] [BR]
• Turkey-Ukraine Grain Deal Extension: Turkiye will continue discussions to extend a deal which allows grain shipments from Ukraine’s Black Sea ports for 120 days rather than 60 days, Turkish Defence Minister Hulusi Akar said on Wednesday. [BR]
• Flash Floods in Turkey's Quake-Hit Region: Flash floods killed at least 14 people living in tents and container housing across Turkiye’s quake-hit region on Wednesday, piling more pressure on President Recep Tayyip Erdogan ahead of crunch elections. [Dawn] [ET] [The News]
• Myanmar Officials Meet Rohingya: Myanmar officials were meeting with Rohingya refugees on Wednesday in what Bangladeshi authorities said was the revival of a long-stalled effort to return the stateless minority to their homeland. [Dawn] [Al Jazeera] [Reuters]
• Putin Hosts Talks with Assad: Russian President Vladimir Putin on Wednesday hosted Syrian leader Bashar al-Assad for talks as the Kremlin seeks to mend ties between Damascus and Turkey's Recep Tayyip Erdogan. [Dawn] [VOA]
• UK Workers on Strike: Teachers, London Underground train drivers and civil servants joined striking doctors Wednesday in a mass stoppage as Britain’s finance minister unveiled his tax and spending plans. [BR] [Dawn] [ET] [ST] [BBC]
• Opinion: A.I. Funding Frenzy Escalates - “When four leading artificial intelligence researchers left Google this year to create a start-up called Mobius AI, they weren’t sure what their product might be — just that it would involve A.I. technology that could generate its own photos and videos.” - By Erin Griffith & Cade Metz [NYT]
• Opinion: Russia’s Mercenary Chief Prepares Ground for a Political Advance - “For months, Yevgeny Prigozhin has been Russia’s most public and provocative military leader in Ukraine. When he is not lauding the heroics of his private fighting force from the front lines, he is castigating the Russian generals for starving him of the supplies he needs to finish the work they could not.” - By Anatoly Kurmanaev [NYT]
• Opinion: Indonesian Farmers Resist Nickel Mining - “Three women with machetes stood guard at their farm hilltop on Indonesia’s Wawonii Island, directing their blades towards the nickel miners working in the forest clearing below. “I pointed the machete at their faces. I told them: ‘If you scratch this land, heads will fly, we will defend this land to the death,’” said 42-year-old villager Royani, recounting a recent encounter with some of the miners.” - By Marchio Gorbiano [BR]

PAKISTAN - REMAINDERS

• Sindh Allowed to Nominate Digital Population Census Focal Person. [ET] [PT]
• Pakistan Post Loses Thousands of Vehicle Documents. [ET]
• Consumer Price Inflation in Pakistan is Second Highest in South Asia. [BR]
• Sehat Card Reform Body Formed: KPK Caretaker Chief Minister Muhammad Azam Khan on Wednesday constituted a committee to suggest mid-term as well as long-term improvement in Sehat Card Plus. [ET]
• Opinion: Rethinking Pakistan’s Agriculture - “The climate change-induced rains of last summer left millions of people homeless in many parts of Pakistan. While it is correct to put pressure on the international community to pay their share of the climate debt, the seismic nature of the disaster should focus our attention on drawing up our own policy framework so that we can do our bit.” - By Abdul Wahab Siyal [Dawn]
• Opinion: A Year of Breaking Bad - “The non-bailable arrest warrants of Imran Khan have been issued. Protests broke out across Pakistan. It has been almost a year since Imran Khan was removed from office in a cooked-up vote of no-confidence sponsored by a foreign conspiracy. My apologies, I meant a foreign interference. Ever since the country has only seen one thing in everything: breaking apart.” - By Imran Jan [ET]

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