PAR News - Tues, 20 Sept 2022

TOPLINE

• Pakistan’s cotton production has shrunk 19% to 2.19 million bales till September 15, 2022 in the current season.
• Wheat price is continuing to rise in Punjab owing to an inefficient price control mechanism, limited availability of the grain and profiteering. 1.6 million tonnes of wheat has been damaged in the recent rains as Pakistan looks to import wheat, which will strain the country’s forex reserves. 
• Seven people were injured when a 4.3-magnitude earthquake jolted Roundu Valley in Skardu on Monday morning
• Pakistani exports, in rupee terms, witnessed an increase of 40.53% during the first 2 months of the current fiscal year (2022-23).
• The US dollar gained against major currencies on Monday, trading within narrow ranges ahead of a slew of central bank meetings this week led by the Federal Reserve, which is likely to deliver another hefty interest rate hike.

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COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE

• Cotton Production Falls: Pakistan’s cotton production has shrunk 19% to 2.19 million bales till September 15, 2022 in the current season mainly due to the devastation caused by heavy rainfall and flash floods nationwide. Sindh, the worst-hit province, has, however, managed to make notable supplies in the past 15 days, negating earlier reports of complete destruction to the cotton crop in the province. [ET]
• Wheat: The shortage of wheat production in the recent past, set against the domestic requirements of an ever-increasing population, has triggered price hikes, and whole wheat imports strained the country’s foreign exchange reserves, says the Asian Development Bank (ADB). Wheat price is continuing to rise in Punjab owing to an inefficient price control mechanism, limited availability of the grain and profiteering. The food department on Monday conducted raids and confiscated 3 trucks loaded with wheat that was being smuggled out of Punjab province.1.6 mn tonnes of wheat has been damaged in the rains stored in government warehouses in the Larkana division. [DT] [BR] [Pro Pakistani] [ET] [UP]
• Roti Price: Nanbais in cities of KPK observed a strike on Monday to demand an increase in the price of roti on account of high rates of wheat flour. [Dawn]

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AGRI-INPUTS, WEATHER, WATER & POWER

• Upcoming Monsoon Rains: A last rain-bearing system of this monsoon season has developed over the Bay of Bengal and is expected to move toward central India, said noted meteorologist Jawad Memon Tuesday. The monsoon season will come to an end during the next 10 days in the country, he added. [The News]
• Water Level in Manchar Lake: The water level in the Manchar Lake — one of the largest freshwater reserves in the country — further receded on Monday with officials expecting the situation to return to “complete normalcy”, provided that the water continued to flow to the River Indus without disruption. [Dawn] [ET]
• Earthquake in Skardu: Seven people were injured when a 4.3-magnitude earthquake jolted Roundu Valley in Skardu on Monday morning. According to Skardu Deputy Commissioner Kareem Dad Chughtai, as the earthquake triggered landslides, heavy rocks fell over and hit several vehicles passing through the Jaglot-Skardu road. The road has since been blocked. [Dawn]
• Liquified Natural Gas Terminal: Pakistan State Oil Co, the nation’s largest fuel importer and retailer, is planning to build a $500 million LNG terminal as part of its strategy to diversify into multiple businesses. [Bloomberg] [WO]
• Gas Reserves Discovered in Kohat: Gas reserves have been discovered in Tolanj West-02, a development well in Tal block located in Kohat Plateau, Khyber Pakhtunkhwa, said Oil & Gas Development Company Limited (OGDCL) in a notice sent on Monday to the Pakistan Stock Exchange (PSX). [BR] [Dawn] [PKR]

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AGRI UPDATES & PAKISTAN POLICY

• Pakistan Exports: The exports from the country in rupee terms witnessed an increase of 40.53% during the first two months of current fiscal year (2022-23) as compared to the corresponding month of last year, Pakistan Bureau of Statistics (PBS) reported. [The Nation] [PT] [UP]
• ECP Reserves its Toshakhana Case Verdict: The Election Commission of Pakistan (ECP) Monday reserved its verdict in the Toshakhana case moved by Pakistan Democratic Movement (PDM), seeking disqualification of Pakistan Tehreek-e-Insaf (PTI) chief Imran Khan for alleged foul play related to Toshakhana gifts. [BR]
• Clean Financing for Agri Sector: The State Bank of Pakistan (SBP) has amended the Prudential Regulations to facilitate the banks to enhance the flow of credits to the farm and non-farm sectors. [Dawn]
• IHC Quashes Terror Charge Against Imran Khan: The Islamabad High Court (IHC) on Monday ordered removal of terrorism sections from a case registered against PTI Chairman Imran Khan for threatening Additional Sessions Judge Zeba Chaudhry and officials of Islamabad police during a public rally in the federal capital. [ET] [The News] [The Nation] [DT] [PT]

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INTERNATIONAL – OVERVIEW & MARKET OUTLOOK

• INR Rupee-Riyal Trade: India and Saudi Arabia have discussed the possibility of starting a rupee-riyal trade as part of efforts to boost economic ties between the nations, the Indian government stated. [BR]
• US Dollar Advances as Markets Brace for Hefty Fed Rate Hike: The dollar gained against major currencies on Monday, trading within narrow ranges ahead of a slew of central bank meetings this week led by the Federal Reserve, which is likely to deliver another hefty interest rate hike. [BR]
• Students Take to The Streets in Iran: Fresh protests broke out on Monday at several universities in Iran’s capital, local media reported, over the death of a young woman who had been arrested by the “morality police” that enforces a strict dress code. [Dawn]
• Israel Says Troops Enter Syria to Pursue ‘Suspects’: Israeli forces crossed into Syria on Monday and fired at four individuals who had “hurled objects along the border fence”, wounding one of them. [BR] [Dawn] [AN]
• Hindu-Muslim Clashes in Leicester: 47 people have been arrested after violence between Hindu and Muslim communities in Leicester over the weekend came from outside the county, the Guardian has learned as tensions flared after Hindus paraded outside a mosque. [The Guardian] [ET]
• Leak Reported at Germany's Isar 2 Nuclear Power Plant: The operator of Germany's Isar 2 nuclear power plant has informed the environment ministry of a leak at the site, which has not compromised security but could complicate the government's winter energy plan. [TRT World] [Reuters]

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