- The Karachi Cotton Association cut the spot rate by Rs 500, bringing it to Rs 17,700/maund, amid a bearish market.
- Local gold prices fell sharply on Wednesday, with a decline of Rs 3000-Rs 271700/tola and Rs 2572-Rs 232939/10 grams. In the international market, gold prices decreased by $30 to $2616/ounce.
- Petroleum prices are set to rise after five cuts, with petrol expected to increase by Rs 5.50 and high-speed diesel (HSD) by Rs 13/liter from October 16.
- The Federal Board of Revenue (FBR) collected Rs 647 million from point-of-sale (POS) services fees since July 2023, using Rs 309 million for employee welfare.
- The government aims to exempt the Gwadar Free Zone from certain import and export regulations to initiate an RMB currency pilot project, boosting foreign investment.
- Indian industrialist Ratan Tata, who transformed the Tata Group into a global conglomerate, has passed away at 86, according to the company.
AGRI-UPDATES - COMMODITIES, POLICY & DEVELOPMENTS
- Daily Rates: Find the following rates on the hyperlinked titles: [Shipping Intelligence], [Pakistan Stock Exchange], [Kibor International Kibor Rates], [BRIndex100 & BR Sectoral Indices], [Activities of Karachi Port Trust, Port Qasim]
- Karachi Cotton Spot Rate Cut to Rs 17,700: The Karachi Cotton Association cut the spot rate by Rs 500, bringing it to Rs 17,700/maund, amid a bearish market. Cotton prices in Sindh range from Rs 17,500-Rs 17,800/maund, while in Punjab, they are between Rs 17,700 and Rs 18,000. In Balochistan, prices are similar to Sindh, and Balochi Cotton is priced between Rs 18,800 and Rs 19,000/maund. [BR]
- Commerce Minister Warns of Cotton Decline: Federal Commerce Minister Jam Kamal Khan highlighted a significant decline in ginning companies, which have dropped from 1,200 to 400, disrupting the cotton supply chain and underutilizing electricity resources. In a meeting with the Pakistan Cotton Ginners Association, he stressed the importance of cotton for livelihoods, noting millions in Pakistan depend on its growth and processing. [ET]
- Agriculture Tax Starts July 2025: Finance Minister Muhammad Aurangzeb announced that agriculture sector tax legislation will be finalized by January 2024 and take effect from July 2025. He mentioned ongoing discussions with China regarding energy debt reprofiling. Additionally, the Chairman of the Federal Board of Revenue confirmed a crackdown on tax non-filers starting next month, with no extension for income tax returns. [BR] [Dawn]
- Gold Prices Drop Sharply in Pakistan: Local gold prices fell sharply on Wednesday, with a decline of Rs 3000-Rs 271700/tola and Rs 2572-Rs 232939/10 grams, reflecting a global bullion drop near $2500/ounce. In the international market, gold prices decreased by $30 to $2616/ounce, while local silver prices remained unchanged at Rs 3050/tola and Rs 2614.88/10 grams. [BR]
ENERGY - WEATHER, WATER & POWER
- Airport Deal Sparks Bidder Controversy: The government allegedly awarded control of Islamabad International Airport to a favored foreign consortium, sidelining another competitive bidder. Danish Janjua claimed his consortium was unfairly denied participation despite arriving on time for the tender submission amidst tight security following a recent suicide attack. [ET]
- No Formal Deal on IPPs Debt, MoU Possible: Finance Minister Muhammad Aurangzeb announced no formal agreement on re-profiling $15.4 billion in debt to Chinese IPPs, but an MoU may be signed to continue discussions during the Chinese prime minister's visit. He dismissed false reports linking deceased Chinese engineers to IPP discussions. Hub Power Company and Lalpir Power Limited held emergency meetings due to early contract terminations, while five other IPPs are negotiating for early retirement. [The News] [The News]
- Chinese Delegation Discusses Energy, Pharma: A Chinese delegation from the China Asia Economic Development Association (CAEDA) will meet with Pakistan's Ministry of Energy on October 10 to discuss refined petroleum products and solar power grid connections. They will also engage with the Ministry of National Health Services to explore medical policies and potential investments in pharmaceutical factories. [BR]
- LPG Strike Threat Over Harassment: Haider Ali, head of the LPG Action Committee, threatened a city-wide LPG strike if the administration does not cease harassment of shopkeepers within ten days. He cited a recent police interference that led to a 6 rupee increase in gas prices and urged the Chief Minister to help resolve the issue, stating that the LPG sector is facing significant distress due to administrative negligence. [BR]
- ISMO Approved for Electricity Operations: The Cabinet Committee on Energy, led by Prime Minister Shehbaz Sharif, approved the formation of an Independent System and Market Operator (ISMO) for electricity generation and purchase. The federal cabinet will provide final approval, and ISMO will be registered with the Securities & Exchange Commission of Pakistan under the Companies Act 2017. [The News]
- Parco Shuts Down for Maintenance: Pak Arab Refinery Limited (Parco), Pakistan’s largest oil refinery, will shut down for 38 days from October 10 to November 18 for maintenance and inspection. Descon Engineering Ltd has been awarded the contract for this turnaround, as Parco processes 120,000 barrels of crude oil daily and meets 40-50% of the country's petroleum needs. [The News]
- Petroleum Prices Set to Rise from October 16: Petroleum prices are set to rise after five cuts, with petrol expected to increase by Rs 5.50 and high-speed diesel (HSD) by Rs 13/liter from October 16. This is due to higher international prices linked to the Middle East crisis, with petrol prices up $2.8/barrel and HSD by $7 recently. Final prices will depend on exchange rates and taxes. [Dawn]
- Supreme Court Allows Dam Fund Investment: The Supreme Court has directed the federal government and Wapda to retain funds collected for the construction of the Diamer Bhasha and Mohmand Dams, allowing them to invest in private banks for mark-up. During a hearing led by Chief Justice Qazi Faez Isa, it was revealed that the dam fund, initiated in 2018, currently holds Rs 23 billion, with Rs 11 billion donated and Rs 12 billion earned in mark-up. [BR]
PAKISTAN - ECONOMICS, POLITICS & SECURITY
- Finance Minister Stresses Export-Led Growth: Finance Minister Muhammad Aurangzeb reaffirmed the government's commitment to its reform agenda to achieve macroeconomic stability and reduce reliance on external borrowing. During a meeting with an Asian Development Bank (ADB) delegation, he emphasized the need for a shift toward sustained export-led growth, encouraging investment and foreign direct investment in export-oriented sectors. [BR]
- Saudi Delegation to Finalize $2.2 Billion Deals: A high-level Saudi business and investment delegation arrived in Pakistan, expected to finalize bilateral agreements worth $2.2 billion. Led by Minister of Investment Khalid Al-Falih, the 135-member delegation is set to sign 26 contracts across various sectors, including energy, IT, agriculture, and textiles, with officials welcoming them at Noor Khan Airbase. [ET] [The News]
- Bilawal Optimistic on Amendments: PPP Chairman Bilawal Bhutto Zardari said the timeline for the constitutional package is not critical for his party, though he anticipates amendments may pass by October 25. He stressed the importance of chief justice conduct and noted the PPP's effort to unite all political parties on the amendments. [Dwan] [ET] [The News]
- Pakistan Sees Record $8.8B in Remittances: Pakistan received a record $8.8 billion in remittances during the first quarter of FY25, a 38.8% increase compared to the previous year. The rise in remittances is attributed to the stability of the Pakistani rupee, a smaller gap between open and interbank rates, and a growing number of workers moving abroad. [BR] [Dawn] [ET] [The News]
- FBR Collects Rs 647M from POS Fees: The Federal Board of Revenue (FBR) collected Rs 647 million from point-of-sale (POS) services fees since July 2023, using Rs 309 million for employee welfare. This information was discussed during a Senate Standing Committee on Finance meeting, where Senator Mohsin Aziz inquired about the total amount collected and its utilization details up to July 2024. [BR]
- UK Allocates £10M for Flood Relief: The British High Commission has allocated over £10 million ($12.2 million) in humanitarian aid for flood-hit communities in Pakistan, focusing on urgent needs in 13 affected districts. The support comes in response to widespread destruction from monsoon rains, which have caused over 350 deaths and damaged more than 78,000 homes. [The News]
INTERNATIONAL - MARKET, POLITICS, SECURITY & DEVELOPMENT
- Israeli Genocide: The Israeli army has intensified shelling in northern Gaza and closed roads, obstructing aid delivery, according to the territory's civil defense agency. As the army surrounded Jabalia and issued new evacuation demands, concerns were raised about Hamas regrouping, with local officials reporting significant fear among civilians due to the escalating violence. [BR] [Dawn] [Dawn]
- Iranian FM in Riyadh for Gaza Talks: Iranian Foreign Minister Abbas Araghchi arrived in Riyadh for talks aimed at halting Israeli military operations in Gaza and Lebanon. His visit focuses on addressing humanitarian concerns, with Saudi Foreign Minister Prince Faisal bin Farhan welcoming him, as Iranian officials describe the situation as "genocide and aggression" against Palestinians and Lebanese. [BR] [ET]
- Study Warns on 1.5°C Climate Limit Breach: A major study warns that breaching the 1.5 degrees Celsius global warming limit could lead to "irreversible consequences," including rising sea levels. Even a temporary overshoot won't produce the same outcomes as early climate action, according to the research led by Carl-Friedrich Schleussner and 30 co-authors. [Dawn]
- Hurricane Milton Hits Florida as Category 4: As Hurricane Milton, a Category 4 storm, approached Florida's Gulf Coast on Wednesday, residents either evacuated or braced for impact. Downgraded from Category 5, Milton still threatens severe winds and tidal surges, particularly in Tampa and Sarasota. Sarasota resident Randy Prior expressed concern, noting the area is still recovering from a previous storm. [Dawn]
- Ratan Tata, Indian Industrialist, Dies at 86: Indian industrialist Ratan Tata, who transformed the Tata Group into a global conglomerate, has passed away at 86, according to the company. Tata's leadership expanded the company’s portfolio significantly, and chairman N. Chandrasekaran expressed profound loss, stating that Tata's legacy will continue to inspire future efforts to uphold the principles he championed. [BR]
- U.S. May Force Google Divestitures: The U.S. may ask a judge to force Google to divest parts of its business, like the Chrome browser and Android, to address its illegal monopoly in online search. This follows a ruling that found Google has a 90% market share, with proposed remedies potentially reshaping internet access and boosting competition. [BR] [Dawn]
- Oil Prices Fall Amid Rising US Inventories: Oil prices fell over $1 a barrel on Wednesday due to rising US crude inventories, although concerns about Middle East supply disruptions and Hurricane Milton limited further declines. Brent crude futures dropped $1.21 (1.6%) to $75.97 a barrel, while US West Texas Intermediate (WTI) futures fell $1.07 (1.5%) to $72.50. [BR]
- Gwadar Free Zone Exemption to Boost Investment: The government aims to exempt the Gwadar Free Zone from certain import and export regulations to initiate an RMB currency pilot project, boosting foreign investment. Minister Ahsan Iqbal chaired a Cabinet Committee meeting that reviewed proposals related to the China-Pakistan Economic Corridor. [BR]
- Pakistani IT Firms Explore Singapore Markets: Pakistani IT companies are exploring opportunities in Singapore's emerging markets to boost exports in the ASEAN region. A delegation, under Tech Destination Pakistan and the Ministry of IT and Telecommunication, has established a Pakistani pavilion at Singapore Tech Week, showcasing their services among over 500 international exhibitors. [BR]
- PTCL Unveils 800 Gbps WDM System: PTCL Group has launched Pakistan's first 800 Gbps per wavelength Super C+L wavelength division multiplexing (WDM) system, achieving a data transmission capacity of 64 Tbps per fiber, with potential expansion to 96 Tbps. Developed with Huawei, this advanced technology supports a broader optical spectrum of up to 12THz, significantly enhancing Pakistan’s digital infrastructure. [BR] [The News]
