- Punjab Agriculture Minister Syed Ashiq Hussain Kirmani announced that the province achieved 99% of its wheat sowing target, cultivating 16.25 million acres out of the 16.5 million-acre goal. He credited the success to the Kisaan Card and Green Tractor Programme.
- Pakistan ranks among the top five countries with the worst air quality, with cities like Islamabad and Peshawar facing severe health risks. The 2023 Air Quality Index (AQI) was 160, with PM 2.5 levels far exceeding WHO limits.
- Pakistan borrowed $2.667 billion during the first five months of FY 2024-25, down from $4.285 billion from FY 2023-24, according to the Economic Affairs Division (EAD). Including the IMF's $1.03 billion tranche, total inflows reached $3.697 billion, but no funds were received from the budgeted $9 billion in time deposits from Saudi Arabia and China.
- Negotiations between the federal government and Pakistan Tehreek-e-Insaf (PTI) began under National Assembly Speaker Ayaz Sadiq on Monday, with the first meeting held in a constructive environment. PTI will present its demands in writing at the next meeting, scheduled for January 2.
- Around 64% of foreign investments in treasury bills (T-bills) have been withdrawn, driven by declining returns due to falling policy interest rates and political uncertainty. In the first five months of FY25, T-bills saw $866.6 million in inflows but $550.6 million in outflows.
- In November, Saudi Arabia became the top destination for Russian sea-borne fuel oil and vacuum gas oil (VGO), with shipments rising by 29% to 0.85 million tons. Total exports from Russian ports increased by 6% to 4.26 million metric tons, while shipments to India and China declined, reflecting changing trade dynamics after the EU's oil product embargo.
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]
- Punjab Achieves Wheat Target: Punjab Agriculture Minister Syed Ashiq Hussain Kirmani announced that the province achieved 99% of its wheat sowing target, cultivating 16.25 million acres out of the 16.5 million-acre goal. He credited the success to the Kissan Card, Green Tractor Programme, and distribution of 1,000 laser-levellers through transparent balloting. [Dawn]
- Karachi Cotton Spot Rate Up by Rs 200: The Spot Rate Committee of the Karachi Cotton Association raised the spot rate by Rs 200, closing at Rs 17,500/maund on Monday. The local cotton market remained steady with low trading volumes, with cotton rates ranging from Rs 16,000-Rs 17,800/maund in Sindh, Rs 16,500-Rs 17,700 in Punjab, and Rs 16,500-Rs 17,300 in Balochistan, while Balochi cotton and Primark cotton were priced between Rs 18,500-Rs 18,900/maund. [BR]
- TIKA Sets Up Solar Greenhouse at Sindh University: TIKA has established a modern, solar-powered greenhouse at Sindh Agriculture University Tandojam to enhance academic research and support farmers and public institutions. The university’s vice-chancellor emphasized the value of TIKA’s agricultural projects in Pakistan and expressed interest in leveraging Türkiye's expertise. [ET]
- Pakistani Rupee Depreciates Slightly Against USD: The Pakistani rupee slightly depreciated by 0.05% against the US dollar on Monday, closing at Rs 278.57. This follows a modest decline last week, attributed to year-end factors, such as foreign investor profit repatriation and increased demand for dollars due to LC settlements, with concerns raised over delays in opening LCs for electric vehicle imports. [ET]
ENERGY - WEATHER, WATER & POWER
- Pakistan Faces Severe Air Quality Crisis - Study: Pakistan ranks among the top five countries with the worst air quality, with cities like Islamabad and Peshawar facing severe health risks. The 2023 Air Quality Index (AQI) was 160, with PM 2.5 levels far exceeding WHO limits. A study by the SDPI emphasized the need for targeted policies and public health measures to address air pollution and protect citizens' health. [Dawn]
- Power Division Launches Inquiry into EDEIP: The Power Division has launched an inquiry into the deletion of certain development schemes, including the Electricity Distribution Efficiency Improvement Project (EDEIP), from the PSDP. Special Secretary Arshad Majeed Mohmand, appointed as the inquiry officer, has directed NTDC Managing Director Waseem Younas to provide the relevant records, but the records have not been received despite multiple requests since the start of the financial year. [BR]
- Cabinet Urges Uniform Gas Prices for Urea Manufacturers: Cabinet members have urged Prime Minister Shehbaz Sharif to implement uniform gas prices for urea manufacturers to eliminate favoritism, as some manufacturers are paying lower tariffs while others pay higher rates. The issue stems from long-term contracts, which have led to distorted pricing and profits for companies with lower gas tariffs, potentially causing market imbalance and costing farmers billions. [ET]
- Inquiry Launched Against NTDC: The Power Division has initiated an inquiry against NTDC over the removal of development schemes, including the Electricity Distribution Efficiency Improvement Project (EDEIP), from the PSDP, halting consultant payments and new consultancies. Despite repeated requests from Special Secretary Arshad Majeed Mohmand, NTDC Managing Director Waseem Younas has failed to provide the required records, prompting further investigation. [BR]
- Greenfield Tyre Facility Boost: Advisor to the Finance Minister Khurram Schehzad highlighted the significant export and domestic potential of a Greenfield tyre manufacturing facility in Gharo, Sindh, aimed at saving and generating foreign exchange reserves. The $50.2 million financing by IFC and local banks will support Armstrong ZE (Pvt) Ltd in introducing a locally manufactured international brand, creating over 1,800 jobs, strengthening supply chains, and boosting Pakistan's tyre industry competitiveness. [BR]
- Crescent Steel Secures Rs 1.5 Billion Contract: Crescent Steel and Allied Products Limited (PSX: CSAP) has secured a Rs 1.5 billion contract for supplying 40-inch diameter coated steel line pipes, expected to be completed by the fourth quarter of FY 2024-25. The contract, awarded through a contractor, was disclosed in accordance with the Securities Act 2015 and PSX regulations. [MG]
- KP Approves Peshawar-DI Khan Motorway Project: The Khyber Pakhtunkhwa government has approved the construction of the 365km Peshawar-Dera Ismail Khan Motorway as a public-private partnership, directing the finance department to arrange funds for land acquisition. The cabinet also granted a one-step promotion to employees of the erstwhile Federally Administered Tribal Areas Development Corporation, approved Rs 40 million for 80 churches as a Christmas gift, and instructed the finance department to release the funds. [Dawn]
PAKISTAN - ECONOMICS, POLITICS & SECURITY
- Pakistan Borrowing Drops 38%: Pakistan borrowed $2.667 billion from various sources during the first five months of FY 2024-25, down from $4.285 billion in the same period of FY 2023-24, according to the Economic Affairs Division (EAD). Including the IMF's $1.03 billion tranche, total inflows reached $3.697 billion, but no funds were received from the budgeted $9 billion in time deposits from Saudi Arabia and China, nor was there any mention of assistance from the UAE. [BR]
- PTI-Federal Govt Talks Begin: Negotiations between the federal government and Pakistan Tehreek-e-Insaf (PTI) began under National Assembly Speaker Ayaz Sadiq on Monday, with the first meeting held in a constructive environment. PTI will present its demands in writing at the next meeting, scheduled for January 2, attended by key political figures including Deputy Prime Minister Ishaq Dar, PM's Adviser Rana Sanaullah, and PPP leaders. [BR] [Dawn] [ET]
- Foreign T-Bill Investment Withdrawals: Around 64% of foreign investments in treasury bills (T-bills) have been withdrawn, driven by declining returns due to falling policy interest rates and political uncertainty. In the first five months of FY25, T-bills saw $866.6 million in inflows but $550.6 million in outflows, with the latest auction showing much lower cut-off yields—11.99% for 6-month T-bills and 12.2% for 12-month papers—compared to over 21% at the start of the fiscal year, following a 900 basis point cut in the policy rate by the SBP. [Dawn]
- PTA Regulates VPNs with Licensing: The Pakistan Telecommunication Authority (PTA) has introduced a new strategy to regulate VPNs by creating a licensing category for providers. Only licensed VPNs will be allowed, and unlicensed ones will be blocked. The PTA has resumed issuing Class Licenses for Data services, allowing for better monitoring of VPN traffic and addressing concerns over anonymity. [Dawn]
- Bilawal Criticizes Digital, Climate Policies: Bilawal Bhutto-Zardari criticized government policies on internet governance and climate change, proposing a "bill of rights" for the digital age. He opposed the six-canal project between Sindh and the federal government and warned that the world is unprepared for climate change, urging youth to plan for future challenges. [Dawn]
- KP Government Unveils Kurram Peace Plan: The Khyber Pakhtunkhwa government has introduced a peace plan to address the violence in Kurram, which has left over 100 dead since October and isolated the region. The plan includes deploying a special force, establishing temporary and permanent security checkpoints along the Parachinar highway, deweaponization, and cracking down on inflammatory social media. This comes after two people were killed and decapitated in the Bagan area on Monday. [Dawn]
- Senate Reviews Tax Amendment Bill: The Senate Standing Committee on Finance and Revenue will meet on Tuesday to review the "Tax Laws (Amendment) Bill, 2024," which aims to tighten controls on non-filers. The meeting, chaired by Saleem Mandviwalla, will consider the bill introduced by Minister for Law and Justice Senator Azam Nazeer Tarar on behalf of Minister for Finance and Revenue Senator Muhammad Aurangzeb. [BR]
- CDNS Hits 39% of Bond Target: The Central Directorate of National Savings (CDNS) has achieved 39.39% of its annual target for fresh bonds, realizing Rs 650 billion out of the Rs 1,650 billion goal for FY 2024-25. Additionally, CDNS aims for Rs 170 billion in Islamic finance investments this fiscal year to support the growth of the Islamic economy, following successful years where it exceeded its targets, including surpassing Rs 1.7 trillion in fresh bonds for FY 2023-24. [PT]
INTERNATIONAL - MARKET, POLITICS, SECURITY & DEVELOPMENT
- Saudi Arabia Tops Russian Fuel Exports: In November, Saudi Arabia became the top destination for Russian sea-borne fuel oil and vacuum gas oil (VGO), with shipments rising by 29% to 0.85 million tons. Total exports from Russian ports increased by 6% to 4.26 million metric tons, while shipments to India and China declined, reflecting changing trade dynamics after the EU's oil product embargo, with Singapore serving as a key transit point for some shipments. [BR]
- Panama President Rejects Trump’s Canal Claims: Panama’s President, Jose Raul Mulino, dismissed US President-elect Donald Trump’s threats to retake control of the Panama Canal, asserting that the canal belongs to Panama. Mulino's comments, made in a video posted to X, responded to Trump’s criticism on Truth Social, where he called Panama’s fees for American ships "unfair" and "ridiculous." [BR]
- China Disputes Sweden on Cable Inquiry: China announced it provided information for the investigation into the severing of two Baltic Sea cables, but disagreed with Sweden over transparency. The Chinese foreign ministry stated that it had invited Germany, Sweden, Finland, and Denmark to join the inquiry, responding to Sweden's criticism about limited access and blocking a Swedish prosecutor from boarding a Chinese vessel linked to the breach. [BR]
- Honda & Nissan Discuss Merger by 2026: Honda and Nissan are in talks to merge by 2026, forming the third-largest auto group globally after Toyota and Volkswagen. This move counters rising competition from Tesla and Chinese rivals like BYD. If it proceeds, it would be the biggest reshaping in the auto industry since the 2021 Fiat Chrysler-PSA merger. Mitsubishi Motors, where Nissan holds a major stake, is considering joining, with a decision expected by January. The CEOs of the three companies held a joint press conference in Tokyo. [Dawn]
- New North Sea Fields Could Add Major CO2 Emissions: Research by Uplift suggests that potential new North Sea oil and gas fields, with early-stage licenses from the UK, could emit as much carbon dioxide as British households do in three decades. This has sparked calls for the government to reject final permits for these projects, which, if developed, would significantly impact global efforts to combat climate change. [The Guardian]
- AI Startups Enhance Agri Insights with Weather Forecasts: A surge of startups offering AI-driven agricultural insights based on long-range weather forecasts has emerged in recent years. AgFunderNews interviewed Himanshu Gupta, co-founder and CEO, and Will Kletter, VP of operations and strategy at ClimateAi, to discuss how the company is turning long-range forecasting data into actionable adaptation strategies for the food and agriculture industry. [AFN]
- Malaysian Palm Oil Futures Rebound: Malaysian palm oil futures rebounded on Monday, rising by 112 ringgit (2.53%) to 4,545 ringgit ($1,012.93) per metric ton, after six consecutive losing sessions. The recovery was driven by stronger Dalian soy oil prices and traders buying cheaper contracts following recent declines. [BR]
- Opinion: The Future of Indus Water Treaty - “By reworking the treaty, India aims to gain greater control over the Indus River system, particularly for hydroelectric power projects in the disputed region of Kashmir. The Kishanganga and Ratle hydroelectric projects in particular have been points of contention. It is feared that these projects will allow India to manipulate water flows, potentially depriving Pakistan of vital water resources during critical agricultural seasons.” - By Moiz Sohail [BR]
- Opinion: Pakistan’s Food Export Conundrum - “Muhammad Arshad, a seasoned finance professional, barely had time to celebrate when his company received a multi-million-rupee order for meat exports – the biggest deal of his career. As the company’s finance and operation manager, he was thrilled with the opportunity and quickly mobilised his staff. But what followed was a crash course in the harsh realities of Pakistan's export infrastructure. Securing enough livestock to fulfill the order became a major challenge first; he had no option but to rely on traditional, often chaotic animal markets due to Pakistan's lack of organised farming infrastructure. While Arshad managed to gather the necessary animals despite the challenges, his problems, unfortunately, did not just end there.” - By Imdad Hussain [ET]
- Opinion: Power Sector at a Crossroads - “PAKISTAN`S energy sector stands at a crossroads, crippled by a circular debt of almost Rs 6 trillion as of now a crisis threatening the country's economic and energy security. Circular debt is the amount that the power purchaser cannot recover from electricity distribution companies (Discos) and subsequently fails to pay to the independent power producers (IPPs). Although the circular debt emerged in 2006, its seeds were sown in the 1990s when Pakistan entered into shortsighted agreement with IPPs.” - By Malik Bilawal Ali Khan [Dawn]
