KARACHI: Agriculture constitutes the largest sector of Pakistan’s economy and the majority of the population depends on it. It contributes about 24 percent of gross domestic product (GDP), accounts for half of the country’s employed labor force, and is the largest source of foreign exchange earnings. It feeds the whole rural and urban populations of Pakistan.
The country has a rich biodiversity and multinational companies have realized this. Thousands of varieties of seeds, medicinal plants and herbs have been developed over hundreds of years by farming communities, who were well-equipped with indigenous knowledge of the local environment, climate and conditions for agricultural production.
But the day is not far off when the entire seed business will be controlled by seed companies, leaving local farmers totally dependent on imported or multinationals’ seeds.
In 2013, Pakistan’s total seed requirements were more than 1.6 million metric tons, whereas the country could produce only 362,000 metric tons of certified seeds. The country has four cash crops — cotton, wheat, rice and sugarcane — which have a major contribution in the country’s GDP worth more than $313 billion.
There are 760 companies in the seed production business in Pakistan, including five multinational companies. The informal sector is still the major seed supplier in the country, with more than 90 percent of the seeds used coming from farmers and other sources such as commissioned agents, retailers and shopkeepers.
Cotton is a strategic crop for Pakistan and a major source of exports. Since 2008, hybrid or GM cotton is being cultivated in more than 90 percent of the cotton belt across Pakistan without proper trials.
Recently, the Pakistan Central Cotton Committee, while ringing an alarm bell, revealed that GM seeds had contaminated all local cotton seed varieties.
Meanwhile, local research institutes have almost abandoned research work, and almost all vegetable seeds are now being imported from India and other countries. Until a few years ago, these seeds were produced locally. Nowadays hybrid corn seeds are imported by multinationals, while fruit seeds including watermelon, melon, strawberries, tomato, capsicum, cucumber, and even coriander are also being imported.
The reason for the fast replacement of indigenous seeds with multinational seeds is a lack of research and development on new varieties, as the local research institutions have completely abandoned this segment. Now, even for cotton, researchers are completely reliant on multinationals after introducing their GM genes into local cotton seed varieties.
As a result, the production of cotton is constantly declining, while the fiber quality is also deteriorating. After the large-scale cultivation of the GM Bt cotton, new pests have emerged and secondary pests are out of control. This means farmers have to bear the additional cost of pesticides, while production is decreasing and seeds are losing their germination quality.
Currently only wheat seed is produced locally, but GM lobbyists are also trying to capture that market. Sugarcane is another cash crop and these seeds are imported from Sri Lanka and Mexico as it is a tropical-weather seed. Indigenous seeds are being replaced without proper impact studies and the authorities lack the proper facilities and skilled workers.
The imported seeds also bring inherited diseases and pests, such as the American cotton bollworm. To cover their negligence, regulators and researchers are linking production loss with climate change impacts.
Though the world’s sixth-most populous country has consistently been a net importer of sowing seeds in terms of value, it has achieved trade surpluses for specific types of seed, including wheat, barley, cotton and herbaceous flowering plants. Still, its dependence on foreign seed supplies remains high. In 2016, the country logged a seed trade deficit of just under $550 million, deriving from $560 million of imports and a little more than $10 million of exports.
The downward journey of Pakistan’s seed exports started in 2014, when they plummeted by 72 percent in volume and 41 percent in value, and this sharp decline has continued.
Imported seeds fast replacing local varieties in Pakistan
Imported seeds fast replacing local varieties in Pakistan
Closing Bell: Saudi benchmark index edges up to close at 11,626
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 73.62 points, or 0.64 percent, to close at 11,626.60.
The total trading turnover of the benchmark index was SR3.57 billion ($953 million), as 199 of the stocks advanced and 37 retreated.
Similarly, the Kingdom’s parallel market, Nomu, gained 264.47 points, or 0.92 percent, to close at 28,978.19. This comes as 46 of the listed stocks advanced while 34 retreated.
The MSCI Tadawul Index gained 5.14 points, or 0.35 percent, to close at 1,474.53.
The best-performing stock of the day was Alistithmar AREIC Diversified REIT Fund, whose share price surged 10.00 percent to SR7.26.
Other top performers included Saudi Cable Co., whose share price rose 9.90 percent to SR135.40 as well as Saudi Printing and Packaging Co., whose share price increased 9.89 percent to SR11.56.
Riyadh Cement Co. led the declines, dropping 3.15 percent to SR33.80.
Leejam Sports Co. slipped 2.03 percent to SR135.20, while Almoosa Health Co. edged down 1.21 percent to SR163.20.
On the announcement front, Almarai Co. reported a first-quarter net profit of SR731.19 million for 2025, up 5.62 percent year on year, driven by a 6 percent rise in revenue, according to a Tadawul filing.
The company noted that higher energy costs partially offset the earnings growth. Almarai shares closed 1.90 percent higher at SR53.30.
Jarir Marketing Co. posted a net profit of SR217.3 million in the first quarter of 2025, down 0.91 percent from the same period a year earlier, according to a Tadawul filing.
The marginal decline came despite a 2.7 percent increase in both sales and gross profit, as well as a rise in other income, with higher selling and marketing expenses weighing on earnings.
Its shares closed flat at SR12.82.
Altharwah Albashariyyah Co. signed a binding agreement to acquire 100 percent of Amjad Watan through a mix of cash and share issuance, pending regulatory and shareholder approvals, the company said in a Tadawul filing.
The deal includes SR7 million in cash, 95,804 shares worth SR5 million, and 536,501 conditional shares valued at SR28 million, to be transferred upon meeting performance targets.
Shares of Altharwah Albashariyyah closed 3.57 percent lower at SR46.05.
Gulf, China exchanges sign deal to boost commodity ties
JEDDAH: Relations between the Middle East and China’s derivatives markets are set to deepen following a new cooperation agreement signed between the Gulf Mercantile Exchange and the Shanghai Futures Exchange.
Under the agreement, GME — the Middle East’s leading international energy and commodities futures exchange — and SHFE — one of China’s primary commodity trading platforms — will collaborate on a range of strategic initiatives.
These include joint product development, market research, the exchange of insights on market trends, and investor education efforts, according to a joint statement released by both exchanges.
“This partnership is a key step toward strengthening alignment between China and the Gulf in commodities trading,” said Raid Al-Salami, managing director of GME.
“We value our cooperation with SHFE and look forward to the opportunities this agreement will unlock for both sides.”
The agreement comes on the heels of a strong performance year for GME. In January, the exchange reported a 12 percent increase in total trading volume for 2024, reaching 1.32 million contracts — up from 1.18 million the previous year. Front-month contract volumes surged 20 percent to a record 959,565 contracts, while total physical exposure rose by 11 percent, reflecting GME’s commitment to enhancing market accessibility and supporting sustainable growth.
Formerly known as the Dubai Mercantile Exchange, GME has a long-standing reputation as a key player in the region’s commodities sector. Established with the vision of creating internationally accessible derivatives markets for Middle East commodities, the exchange has continued to evolve in scope and ambition.
A major milestone came in 2024 when the Saudi Tadawul Group acquired a third strategic stake in the exchange. This acquisition led to a rebranding from DME to GME, signaling a renewed focus on building out commodity markets in Saudi Arabia and across the wider GCC as part of a long-term strategic roadmap.
With this new partnership, GME and SHFE are poised to play a central role in shaping the future of commodity trading between two of the world’s most dynamic economic regions.
Saudi Arabia advances in 2025 Global Intellectual Property Index
RIYADH: Saudi Arabia has made notable progress in the 2025 Global Intellectual Property Index, with its score rising by 17.5 percent, placing it among the fastest-improving economies out of the 55 countries evaluated.
According to the 13th edition of the index, published by the US Chamber of Commerce, the Kingdom now ranks 40th globally—a reflection of the substantial reforms driven by its Vision 2030 strategy. These reforms aim to enhance intellectual property protection, foster innovation, and support the growth of a knowledge-based economy.
Since 2019, Saudi Arabia’s overall score has increased from 36.6 percent to 53.7 percent in 2025, marking a cumulative improvement of over 40 percent in just six years.
This progress stems from a comprehensive transformation of the nation’s IP ecosystem, including the strengthening of legal frameworks and enforcement mechanisms.
Key milestones noted in the report include the extension of design protection from 10 to 15 years, the establishment of a specialized prosecution office for IP-related cases, and the launch of advanced online enforcement tools for copyrights and trademarks.
These developments highlight Saudi Arabia’s growing institutional capacity and ongoing regulatory modernization, led by the Saudi Authority for Intellectual Property.
The report also highlighted significant advancements in public awareness initiatives, inter-agency collaboration, and Saudi Arabia’s accession to key international intellectual property treaties. These developments have helped align the Kingdom’s IP framework more closely with global standards.
Notably, Saudi Arabia achieved higher scores in enforcement, international treaty participation, and the efficiency of its copyright enforcement system. These improvements reinforce the Kingdom’s ambition to become a regional and global center for innovation and creativity.
By fostering a more transparent and dependable intellectual property environment, Saudi Arabia is attracting increased foreign investment while also empowering local entrepreneurs to develop innovative ideas, products, and technologies.
The US Chamber of Commerce commended the Kingdom’s efforts to institutionalize intellectual property rights as a core component of its economic diversification strategy, positioning Saudi Arabia as a model among emerging markets.
Meanwhile, the UAE also performed strongly in the 2025 index, ranking 26th globally with an overall score of 60.66 percent. The UAE was praised for its robust patent and trademark protections, consistent judicial enforcement, and strong commitment to digital transformation.
Oman property market cools in February as deals drop 8.3%
RIYADH: Oman’s property market saw a dip in activity in February, with total real estate transactions falling 8.3 percent year on year to 362.3 million Omani rials ($940.7 million), official data showed.
According to figures from the National Centre for Statistics and Information, this compares to 394.9 million rials recorded during the same period in 2024, Oman News Agency reported.
The moderation in activity comes amid tighter global financial conditions, shifting investor sentiment, and a gradual normalization of real estate markets across the Gulf following the post-pandemic surge in demand and pricing.
Despite the broader slowdown in Oman’s real estate market, revenue from legal transaction fees rose 5.9 percent to 12.3 million rials, up from 11.6 million rials a year earlier.
The value of sale contracts dropped 18.3 percent to 160.3 million rials, while the number of contracts declined 3.2 percent to 11,177, down from 11,543 in February 2024.
Meanwhile, mortgage transactions edged up 1.8 percent to 200.1 million rials across 3,416 contracts, compared to 196.5 million rials across 2,989 contracts a year earlier.
Exchange contracts dropped to 266, valued at 1.9 million rials, down from 299 contracts worth 2.2 million rials in the same period last year.
In Oman’s real estate market, swap contracts—also known as real estate exchange agreements—are arrangements that enable two parties to trade property ownership with engaging in cash transaction.
The number of property titles issued rose slightly by 0.8 percent to 39,704, while those issued to Gulf Cooperation Council citizens increased by 7.1 percent to 227, compared to 212 in February 2024.
The cooling follows a strong 2024, when Oman’s real estate sector surged 29.5 percent, with total transactions reaching 3.3 billion rials, driven by foreign investment and government-led reforms.
During the first nine months of that year, the sector contributed 820.7 million rials to gross domestic product, according to the Ministry of Housing and Urban Planning, as reported by Oman News Agency in February.
The sector’s performance reflects broader regional momentum as Gulf countries press ahead with economic diversification strategies.
In Saudi Arabia, real estate prices rose 3.6 percent year-on-year in the fourth quarter of 2024. Dubai saw a 30 percent jump in residential sales to $32.4 billion during the same period, while Qatar recorded 3,548 real estate transactions in 2024 totaling $3.97 billion.
To support the sector, Oman has eased foreign ownership rules and introduced tax incentives aimed at attracting investment and boosting development across the sultanate.
US tariff escalation puts $22bn of Arab exports at risk, says ESCWA report
RIYADH: Arab countries could see up to $22 billion in non-oil exports affected by sweeping new US tariffs, with six economies facing the most direct disruption, according to a new analysis.
A report by the UN Economic and Social Commission for Western Asia said the measures, imposed on April 2, include a blanket 10 percent tariff on nearly all imports, with rates climbing as high as 42 percent for countries with trade surpluses.
While oil remains exempt, the duties now cover a broad range of industrial goods such as textiles, fertilizers, aluminium and electronics, effectively nullifying trade preferences previously granted to Bahrain, Jordan, Morocco and Oman.
ESCWA said that exports from Bahrain, Egypt, Jordan, Lebanon, Morocco and Tunisia are expected to be “significantly affected by the new tariff hikes,” with Jordan facing the highest exposure due to its reliance on the US market.
“A country having a higher share of non-oil exports to the United States is expected to be directly impacted,” the report stated.
“The direct impact is particularly high for countries where exports to the United States constitute a major share of their total global exports.”
While some Arab countries like Egypt and Morocco initially appeared well-positioned to benefit from trade diversion away from heavily tariffed economies like China and India, that potential has faded following a policy shift by Washington.
“With the pause announced on 9 April for most countries, excluding China, the trade diversion effect in favor of most Arab countries is likely to disappear,” ESCWA noted.
ESCWA noted that the impact will vary considerably across the region. Five other countries — Algeria, Oman, Qatar, Saudi Arabia, and the UAE — are likely to see smaller effects, while eleven Arab countries are projected to experience negligible exposure due to limited or no exports to the US.
These include Iraq, Kuwait, and Libya, as well as several least developed countries such as Somalia, Sudan, and the Comoros.
While direct trade impacts will be concentrated among a handful of countries, the broader Arab region may still suffer from indirect effects tied to global demand conditions.
ESCWA warned that reduced consumption from key partners such as China and the EU — both major buyers of Arab goods — could negatively affect export performance across the board.
The EU accounts for 72 percent of Tunisia’s exports and 68 percent of Morocco’s, while China purchases 22 percent of the GCC’s oil and chemicals.
Preliminary macroeconomic modeling for 2025 indicates moderate net impacts for the Agadir Agreement countries — Egypt, Jordan, Morocco and Tunisia.
These nations are expected to see declines in gross domestic product, exports and investment, though some mitigation may occur through limited trade redirection.
GCC economies, by contrast, are projected to experience a smaller aggregate effect, with real GDP declining slightly.
However, the report suggests that losses in oil revenue, tied to falling prices and reduced global demand, could weigh more heavily on fiscal outcomes.
The simulation assumes full implementation of the April 2 US tariffs and corresponding retaliatory measures from China announced on April 5.
Based on this scenario, real GDP in the Agadir countries is projected to fall by 0.41 percent, exports by 1.41 percent, and total investment by 0.38 percent.
The GCC region is expected to register a GDP loss of just 0.10 percent, reflecting lower exposure to US tariffs but higher vulnerability to oil market fluctuations.
The fiscal dimension of the shock is also becoming more apparent. Rising global uncertainty has already driven up borrowing costs for many Arab economies.
Between April 2 and April 9, 10-year bond yields increased by 36 basis points in Arab middle-income countries and by 32 basis points in the GCC.
The impact is particularly acute in debt-heavy MICs. ESCWA estimates that Egypt will face an additional $56 million in interest payments in 2025, Morocco $39 million, Jordan $14 million, and Tunisia $5 million.
These increases, while modest in dollar terms, represent a non-trivial strain on public finances.
The Arab region’s trade relationship with the US has already been weakening. Total exports from Arab countries to the US dropped from $91 billion in 2013 to $48 billion in 2024, primarily due to the decline in American crude oil imports.
However, non-oil exports have grown steadily, from $14 billion in 2013 to $22 billion last year, underscoring the increasing relevance of industrial and value-added goods in Arab export profiles.
In light of these developments, ESCWA is urging Arab governments to respond with coordinated policy actions.
Recommended measures include accelerating regional economic integration, pursuing carve-outs under existing trade agreements, and recalibrating free trade arrangements to avoid preference erosion.
The agency also emphasized the need for countries to strengthen fiscal buffers and diversify trade and investment partnerships.
As the geopolitical and trade environment grows more uncertain, Arab economies are being advised to prepare for continued volatility.
“Arab countries must recognize the diverse, and sometimes contradictory effects of the United States tariff escalation,” ESCWA stated, warning that policy inaction could expose vulnerable economies to prolonged disruptions.
