- The Sindh cabinet fixed the wheat support price at Rs 4,000 per 40kg compared to last year’s Rs 2200
- The export value of spices was Rs 1.1 billion in July 2022, up 22.9%
- The export value of rice was Rs 30.4 billion in July 2022, up 36%
- NEPRA increased tariffs of power DISCOs by Rs 4.34 per unit for July 2022 under the monthly Fuel Charges Adjustment.
- 27 CPEC projects have been completed at $19 billion while 63 more remain with investment of $35.2 billion are scheduled to be completed by 2030.
- Ukrainian continued their lightning counter-offensive and took back yet more ground in the past 24 hours
- Oil prices rose as Iranian nuclear talks appeared to hit obstacles and an embargo on Russian oil shipments loomed.
COMMODITIES - CROPS, LIVESTOCK & HORTICULTURE
- Flour Crisis: Balochistan’s flour mills owners have blamed the provincial government for the ongoing flour crisis in the province, alleging that the food department failed to procure wheat according to the requirement for this year. The Sindh Chamber of Agriculture (SCA), a farmers' lobbying group, has warned that the flour price in the market may shoot up to Rs200 per kilogram if the government fails to drain water from flooded agricultural fields and to financially support farmers on war footings. [ET] [Dawn]
- Wheat Price Jumps: Wheat grain prices have sharply risen by Rs 1,000 per 100-kg bag during the last one week due to expected shortage of the commodity. Traders told Business Recorder that prices of wheat grain surged to Rs 9,100 per 100-kg bag in the domestic market on Monday compared to Rs 8,100 per 100 kg bag a week earlier. In terms of kilograms, wheat prices have increased by Rs 10, to reach Rs 90 per kilogram.The Sindh cabinet’s decision to fix the wheat support price for the financial year 2023 at Rs4,000 per 40kg from last year’s Rs2,200 has caused anxiety among stakeholders, who fear that the decision may prove a boon for the flood-hit growers, but a bane for consumers. Sindh hopes to meet 70% of the wheat sowing target. [BR] [Dawn]
- Cotton Market: The local cotton market on Monday remained steady and the trading volume remained satisfactory. The rate of cotton in Sindh is in between Rs 17,000 to Rs 22,000 per maund. The rate of cotton in Punjab is in between Rs 22,000 to Rs 23,500 per maund. The rate of Phutti in Sindh is between Rs 6,000 to Rs 9,000 per 40 kg. The rate of Phutti in Punjab is between Rs 9,000 to Rs 13,000 per 40 kg. The rate of cotton in Balochistan is in between Rs 18,000 to Rs 19,000 per maund. [BR]
- Commodity Exports: Rs 1.1 billion was the export value of spices in July 2022, up 22.9% compared to Rs 909 million in July 2021. Rs 30.4 billion was the export value of rice in July 2022, up 36% compared to Rs 22.3 billion in July 2021. [ET] [ET]
AGRI-INPUTS, WEATHER, WATER & POWER
- Threat of Flooding: Authorities are scrambling to protect a vital power station supplying electricity to millions of people in Dadu against a growing threat of flooding. Floods from record monsoon rains and glacial melt in the mountainous north have affected 33 million people and killed almost 1,400, washing away homes, roads, railways, livestock and crops, in damage estimated at $30 billion. The recent flash floods, induced by climate change, have damaged an estimated 8.3 million acres of crops, with over 3.4 million acres of crops being affected in Sindh alone. The floods have also destroyed essential vegetable commodities all over the country. [ET] [ET] [BR] [ET]
- Electricity Hikes: The National Electric Power Regulatory Authority increased tariffs of power Distribution Companies (Discos) by Rs 4.34 per unit for July 2022 under the monthly Fuel Charges Adjustment (FCA) mechanism. [BR] [Dawn] [The News]
- Thar Coal Project: M/s Shanghai Electric has sought an extension in financial closing date and required commercial operation (RCO) date sans conditions for its 1,320 MW Thar coal project till December 31, 2022 and July 22, 2023 respectively, saying that circumstances are not in the company’s control. [BR]
- Varieties of Oil Seeds: The variety evaluation committee of Pakistan Agricultural Research Council (PARC) has approved 29 hybrid and normal varieties of canola, mustard and sunflower of local and imported origin for commercial cultivation as per their ecological conditions. [Dawn] [ET]
AGRI UPDATES & PAKISTAN POLICY
- Pakistan, China on CPEC: Pakistan and China have agreed to counter the agendas of hostile elements through mutual efforts for ensuring safety and security of Chinese personnel and projects in Pakistan, as 27 CPEC projects have been completed at $19 billion while 63 more with investment of $35.2 billion are scheduled to be completed by 2030. [The News] [ET]
- Rupee Depreciation: The dollar was traded at Rs229.82 in the interbank market on Monday — an appreciation of Rs1.64 — compared to the previous rate. The open market rate for the greenback, as reported by the Exchange Companies Association of Pakistan (ECAP), was Rs236, an increase of Rs1.5 on the first day of the week. [Dawn]
- Political Activity: General Bajwa may continue as army chief till formation of new govt, says Imran Khan. Khan hinted at holding talks with the government and claims the country is very much close to sovereign default and pointed out that revival of the IMF programme has failed to restore investor confidence and insisted that the government has no roadmap to take the country out of the woods and promised he would never trigger Sri Lanka-like civil unrest in Pakistan. [BR] [Dawn] [ET]
- Punjab By-Elections: Election for Multan NA seat, Khanewal, Sheikhupura and Bahawalnagar PA seats on Oct 9. Defers decision on nine NA seats amid issue of de-notified PTI MNAs. [BR] [Dawn] [ET]
- FATF-Linked Goals: The Asia-Pacific Group (APG) on Money Laundering has rated Pakistan’s level of effectiveness as ‘low’ on 10 out of 11 international goals on anti-money laundering and combating the financing of terror (AML/CFT), even though the country is now compliant on 38 out of 40 technical recommendations. [Dawn]
INTERNATIONAL – OVERVIEW & MARKET OUTLOOK
- Europe Debates Gas Price Cap: Europe felt the chill of soaring energy prices on Monday, with France saying it could not foot all of the extra costs for consumers, while Britain faces a rising risk of recession. [BR]
- India’s Rice Export: India’s restrictions on rice exports have paralysed trading in Asia, with buyers scouring for alternative supplies from Vietnam, Thailand and Myanmar where sellers are holding off on deals as prices rise. [BR] [Dawn]
- Oil Prices: Oil prices rose on Monday as Iranian nuclear talks appeared to hit obstacles and an embargo on Russian oil shipments loomed, with tight supply struggling to meet still robust demand. [BR]
- Russia Ukraine War: Ukrainian forces said on Monday their lightning counter-offensive took back yet more ground in the past 24 hours, as Russia responded with strikes on some of the recaptured areas. [Dawn] [ET]
- Oregon Wildfire: A massive wildfire burned out of control on Monday in Oregon forcing residents to flee and threatening towns and thousands of homes, in the latest blaze to scorch the US West during a blistering summer. [Dawn]
- Israeli Missile Defence System: Germany is in talks to buy a missile defence system from Israel as part of Berlin’s efforts to strengthen its armed forces after Russia’s invasion of Ukraine, Israeli Prime Minister Yair Lapid said on a visit to the German capital on Monday. [Dawn]
- Opinion: Lessons we did not learn from the 2010 floods - “In creating and implementing plans to address growing climate related threats, it is essential that both federal and provincial governments make serious efforts to take preventive actions. As in 2010, a national rehabilitation and reconstruction plan needs to be prepared with domestic and international experts. Such a plan would identify the best ways to adapt to the likely changes in climate over the next 20-30 years. But unlike 2010, these plans must not remain a paper document. Most importantly, given the size of the task at hand, our leaders and politicians must stop bickering with each other and act together to address the threats that Pakistan faces. Pakistan cannot afford the luxury of inaction.” - By Daud Khan [ET]
