PAR News - Wed 21 Sept 2022

TOPLINE

• The government, while dispelling rumours of a wheat shortage, said that currently Pakistan has 7.1 million tons of wheat storage.
• The KCA on Tuesday increased the spot rate by Rs 500 per maund and closed it at Rs 22,700 per maund.
• The government raised the petrol price by Rs1.45 to Rs237.43 while KE has sought about Rs4.21 per unit reduction in monthly fuel cost adjustment (FCA) to refund about Rs7.22 billion overcharged to consumers.
• A number of landowners and farmers held a protest against the Ravi Riverfront Urban Development Project over “forced possession” of their farmlands allegedly by the Ravi Urban Development Authority (RUDA).
• UN chief Antonio Guterres on Tuesday urged rich countries to tax windfall profits of fossil fuel companies and use that money to help countries harmed by the climate crisis at the UNGA meeting in New York.

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COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE

• Flour Supply: Pakistan Businesses Forum (PBF) President Usman Zulfiqar has urged provincial governments to ensure the availability of flour in markets at competitive rates and a strict check and balance on a daily basis. [ET]
• There’s No Shortage of Wheat: The government, while dispelling the rumours of wheat shortage, said that currently Pakistan has 7.1 million tons of wheat storage, which during the same period of the last year stood at 6.1 million tons, and 1 million tons of wheat will soon arrive in Pakistan. [BR]
• Lumpy Skin Disease: The outbreak of lumpy skin disease (LSD) has caused the death of around 5,903 cattle heads in Khyber Pakhtunkhwa so far, while 41,158 animals are being treated for the disease. According to the KP livestock department, the province has more than 8.8 million cattle heads, out of which so far 1.3 million cattle heads have been vaccinated till September 19.  The KP reported the number of affected animals at 1.4 million, out of which 57,890 have recovered and 41,158 are under treatment. [PT]
• Cotton Market: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Tuesday increased the spot rate by Rs 500 per maund and closed it at Rs 22,700 per maund. The rate of cotton in Sindh is in between Rs 19,500 to Rs 22,000 per maund. The rate of cotton in Punjab is in between Rs 22,000 to Rs 24,000 per maund. The rate of Phutti in Sindh is between Rs 7,000 to Rs 10,000 per 40 Kg. The rate of Phutti in Punjab is between Rs 8,000 to Rs 12,000 per 40 Kg. The rate of cotton in Balochistan is in between Rs 19,000 to Rs 20,000 per maund. [BR]

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AGRI-INPUTS, WEATHER, WATER & POWER

• Fuel Price Hike: After a delay of six days, the government finally notified the revised prices of petroleum products in the early hours of Wednesday, raising the petrol price by Rs1.45 to Rs237.43. [Dawn] [ET] [The News]
• Reduction in Power Tariff: The K-Electric (KE) has sought about Rs4.21 per unit reduction in monthly fuel cost adjustment (FCA) to refund about Rs7.22 billion overcharged to consumers in August. [Dawn] [ET] [The News] [The Nation]
• Dam Funds: After failing to retrieve information about the billions of rupees collected in the name of Diamer-Bhasha Dam for nearly a month, the Public Accounts Committee (PAC) has again shown interest in summoning former chief justice Saqib Nisar, albeit this time after auditor general office and the parliamentary body get access to details of the fund, established in July 2018. [Dawn] [ET] [The News]

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AGRI UPDATES & PAKISTAN POLICY

• PKR Depreciation: The continuously weakening Pakistani currency, which is at a distance of just Rs1.03 from the all-time low hit in late July, became the worst-performing currency in emerging markets in September. [ET] [Dawn] [MG]
• Farmers Protest ‘Illegal Possession’: A number of landowners and farmers held a protest against the Ravi Riverfront Urban Development Project over “forced possession” of their farmlands allegedly by the Ravi Urban Development Authority (RUDA) – the state-owned entity responsible for the execution of the mega project. [Dawn]
• Water-Borne Diseases Could ‘Get Out of Control’: At least nine more people died from water-borne diseases in flood-hit areas of Sindh – raising the provincial death toll from gastroenteritis, diarrhea and malaria and other diseases, to 318 since July 1, officials said on Tuesday. [ET]
• Locally Built Trains: Pakistan Railways (PR) and Chinese mechanical engineers are in the process of manufacturing 34 locomotive engines worth Rs1.5 billion at the Mughalpura railway workshop in Lahore. [ET]
• Pak-China Bilateral Cooperation: Ministry of National Food Security and Research (MNFS&R), and the Ministry of Agriculture and Rural Affairs (MARA) of the People’s Republic of China jointly held the Third meeting of the China-Pakistan Joint Working Group (JWG) on Agriculture on Tuesday. [Pro Pakistani] [DT] [Radio Pakistan]

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INTERNATIONAL – OVERVIEW & MARKET OUTLOOK

• Oil Prices: Oil prices dipped on Tuesday, following other risk assets lower, as the dollar stayed strong and investors anticipated more central bank interest-rate hikes designed to quell inflation. [BR] [ET]
• UN Chief Steps up His Attacks on Oil: UN chief Antonio Guterres on Tuesday urged rich countries to tax windfall profits of fossil fuel companies and use that money to help countries harmed by the climate crisis and people who are struggling with rising food and energy prices. [BR]
• Global Energy Transition Goals ‘Unrealistic’: Oil giant Saudi Aramco’s chief on Tuesday blasted “unrealistic” energy transition plans, calling for a “new global energy consensus”, including ramped-up investments in fossil fuels to address painful shortages. [BR] [BR]
• World Leaders Join Pakistan for SOS on Flood and Debt: “Pakistan is drowning, not only in floodwater but in debt” too, said UN Secretary General Antonio Guterres as Prime Minister Shahbaz Sharif urged the international community on Tuesday to stay engaged with the country as it deals with this huge humanitarian crisis. [Dawn]

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PAKISTAN - REMAINDERS

• Opinion: Post-flood food crisis - “It goes without saying that the recent floods will worsen the situation as regards food security as they will cause supply chain disruption amid an already existing inflationary pressure. The International Rescue Committee says that crops over 3.6 million acres have been damaged, which includes 65% of Pakistan’s main food crops. Similar is the case with fruits, vegetables, other staple crops as well as cotton. Likewise, there has been livestock loss of around 3 million which, combined with loss of crops, would seriously affect the supply of food items in coming months.” - By Dr Karim Khan [ET]

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