The Kharif season is underway in Pakistan amid reports of water shortages negatively impacting the growth period of the season. The water shortage weighs heavy on sugar cane crop which is highly water-intensive. Other issues with the crop, including long-time duration, land degradation, use of insecticides and encroachment of cotton belts, have had people talking about sugar beet in the past.
One more factor adds to the vulnerability of the energy sector in the country. Power sector woes in Pakistan continue to escalate obstinately, and the takeaways from the ADBs recent study just add to the worries, especially with the monsoon gathering momentum already.
The changing face of the global economy is not new. As the developed economies struggle to regain lost luster, the emerging economies are gaining prosperity and influence, albeit with their own problems. Its now Fortune Global 500s turn to remind people of the changing face of the global economy, despite the general economic slowdown being witnessed in the world today.
The money supply didn grow by much this year; but its growth remained highly skewed towards high powered money creation. Data for all but the last week of FY12 shows government borrowing from the State Bank of Pakistan is approaching Rs600 billion, close to the amount of money printed in 2008.
The curtain closed on cement dispatches for FY12 with robust growth seen in June. With over three million tons of cement dispatched in June alone, the month recorded the second highest monthly dispatches this fiscal year, second only to March.
It appears that Pakistan may finally be in a position to sell the exportable surplus of wheat, as an upward trend is being witnessed in the commoditys export prices. Infeasibility of wheat exports-due to unfavorable price differential between pricier local wheat and international trade-has kept Pakistan from exporting its surplus wheat produce in recent years.