PAR News - Wed, 30 Nov 2022

TOPLINE

• The Finance Ministry hoped for a slowdown in the inflation rate three days after the central bank increased the interest rates to arrest inflation. The government of Punjab is giving wheat to the owners of flour mills at subsidised rates, but the people are not getting flour at the notified subsidised rate of Rs 65/kg, while a group of Progressive Flour Millers called on Punjab Food Secretary Nadir Chattha to discuss the current wheat flour situation in the province.
• The government has decided to increase the KE tariff by Rs 1.55 per unit for the fourth quarter (April-June) 2021-22 to maintain uniform tariff across the country. Moreover, CPEC energy projects have improved the electricity sector in Pakistan and contributed to economic growth by increasing power supply with high efficiency and at lower cost.
• EPCL, a subsidiary of Engro Corporation Limited, has entered into an interim agreement with Sui Southern Gas Company Limited for the supply of gas till 28 February 2023.
• The Economic Coordination Committee of the Cabinet approved Kissan Package-2022 with a reduction in electricity tariff for tubewells to Rs 13 per unit and Rs 93.438 billion for settlement of payables to government-owned power plants.
• Pakistan has received $500 million from the Asian Infrastructure Investment Bank, the Ministry of Finance stated on Tuesday.
• Ukraine urged NATO members Tuesday to speed up weapons deliveries and help restore its shattered power grid, as Western allies vowed to bolster support to aid Kyiv through winter in the face of Russia’s attacks.

COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE

• Sugar Export: Sugar Advisory Board (SAB) on Tuesday asked the provincial cane commissioners to submit sugar data and production estimates for the current season so it can take a decision on allowing the export of the sweetener. [The News]
• Textile Exporters: Textile exporters in Pakistan, like their regional counterparts, struggle to be merry this Christmas season, as a buying freeze abroad has hit all segments, from apparel, denim and knits to home textiles, though they hope things will get better in the coming months. [Dawn]
• Low Wheat Output: Three days after the central bank increased the interest rates to arrest inflation, the Ministry of Finance hoped for a marginal slowdown in the inflation rate but warned that the country will also see less than the targeted production of wheat. [ET]
• Flour Subsidy: The government of Punjab is giving wheat to the owners of flour mills at subsidised rates, but the people are not getting flour at the notified subsidised rate of Rs65 per kilogram. [ET]
• Wheat Quota: A group of Progressive Flour Millers called on Punjab Food Secretary Nadir Chattha to discuss the current wheat flour situation in the province. The delegation led by chairman Khaleeq Arshad stressed the need for an increase in wheat quota to keep flour prices in control. It was stressed to issue the lapsed quota among the millers, when certain mills quota is suspended. The non-issuance of lapsed wheat quota among millers is a clear indication of the department's intention of saving wheat. The secretary assured them of addressing grievances. [The News]
• Fish Export: 39.65 % growth was seen in the export of fish products in the first four months of FY ‘22-23. [ET]
• Food Group Imports: $3.4 billion was the value of food group imports in July-Oct 2022, up 9.7% compared to $3.1 billion last year, according to PBS. [ET]
• Adulterated Milk: 3,550 liters of milk was seized by the PFA during a raid at shops in sector G-9 in Islamabad. [ET]

AGRI-INPUTS, WEATHER, WATER & POWER

• Water Flow at Guddu Barrage: 30,700 cues of water flow was recorded at Guddu Barrage, as per Indus River System Authority. [ET]
• Power Tariff: The government has decided to increase KE tariff by Rs 1.55 per unit for fourth quarter (April-June) 2021-22 under quarterly tariff adjustments to maintain uniform tariff across the country, well-informed sources told Business Recorder. [BR]
• Low-Cost Electricity: China-Pakistan Economic Corridor (CPEC) energy projects have improved the electricity sector in Pakistan and contributed to economic growth by increasing power supply with high efficiency and at lower cost, remarked Tauseef H Farooqi, said Chairman of National Electric Power Regulatory Authority (Nepra). [ET] [DT]
• Russian Oil Imports: The State Department has no particular objection to Russian crude oil import by Pakistan, saying the US does not currently have sanctions in place against Russian energy exports to other countries. [The News]
• Gas Supply: Engro Polymer and Chemicals Limited (EPCL), a subsidiary of Engro Corporation Limited, has entered into an interim agreement with Sui Southern Gas Company Limited (SSGC) for the supply of gas till 28 February 2023. [BR] [Dawn]

AGRI UPDATES & PAKISTAN POLICY

• Kissan Package: The Economic Coordination Committee (ECC) of the Cabinet Tuesday approved Kissan Package-2022 with a reduction in electricity tariff for tubewells to Rs 13 per unit from Rs 16.60 per unit and Rs 93.438 billion for settlement of payables to government-owned power plants at par with IPPs. [BR] [Dawn]
• Program Financing: Pakistan has received $500 million from the Asian Infrastructure Investment Bank (AIIB), the Ministry of Finance stated on Tuesday. “The Government of Pakistan has today received $500 million from AIIB. The funds are deposited with the State Bank of Pakistan (SBP) and will augment our reserves,” the ministry said in a post on its Twitter handle. [BR] [Dawn] [ET] [RP]
• Google Payments Issue: The State Bank of Pakistan (SBP) is engaged with the industry on the issue of users’ payments to Google, and it will be resolved, chief spokesperson for the central bank, Abid Qamar told Business Recorder on Tuesday. [BR]
• New COAS Gen Asim Takes Reins: General Sayed Asim Munir on Tuesday took charge as the 17th Army chief of Pakistan at a ceremony held at the General Headquarters in Rawalpindi. The change of command ceremony took place after a gap of six years, as General Qamar Javed Bajwa, now retired, was given a three-year extension in 2019. [Dawn] [ET]

INTERNATIONAL – OVERVIEW & MARKET OUTLOOK

• Oil Prices: Oil rose on Tuesday on expectations for a loosening of China's strict COVID-19 controls, but concerns that OPEC+ would keep its output unchanged at its upcoming meeting limited gains. Brent crude futures settled at $83.03 a barrel, losing 16 cents, or 0.2%. U.S. West Texas Intermediate (WTI) crude futures settled at $78.20 a barrel, up 96 cents, or 1.2%. [BR] [Reuters]
• Russia-Ukraine War: Ukraine urged NATO members Tuesday to speed up weapons deliveries and help restore its shattered power grid, as Western allies vowed to bolster support to aid Kyiv through winter in the face of Russia’s attacks. [BR] [Dawn] [RP] [France 24]
• ConocoPhillips Sign LNG Deal for Germany: QatarEnergy and ConocoPhillips have signed two sales and purchase agreements to export liquefied natural gas to Germany for at least 15 years starting 2026 – the first such supply deal to Europe from Qatar’s North Field expansion project. [ET] [Bloomberg] [Al Jazeera]
• The Turmoil in Twitter: Elon Musk has accused Apple Inc of threatening to block Twitter from its app store without saying why, in a series of tweets on Monday, that also said the iPhone maker had stopped advertising on the social media platform. [Dawn]

PAKISTAN - REMAINDERS

• Opinion: Pakistan’s Low Investment Conundrum - “Pakistan, an economy characterised by boom-bust cycles, has been under severe stagflation.  The inflation rate in the country has risen to 24%, and about 31% of our youth, with degrees, are unemployed.  In other words, we have not been able to match our rising demand due to low productivity and, likewise, we have been lacking capacity to cater to our youth bulge.  Our short-lived cycles of growth are usually followed by macroeconomic crises.” - By Dr Karim Khan [ET]
• Careem Marks Pakistan as Largest Ride-Hailer: In the absence of quality mass transportation services, Pakistan has come out on top as the biggest user of ride hailing service Careem, as the company announced its landmark one billion rides breakdown. [ET]

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