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Aurangzeb says IMF had not asked for a tariff on solar panels

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He disputed allegations that the government had considering taxing solar panels before the budget. ‘There was never any such demand from the IMF and the topic was never discussed,’ he said.

Aurangzeb stated in a media interaction that the government is working on a set of structural reforms in the energy sector to bring down electricity rates, improve the business environment and increase the competitiveness of major industries, according to a federal minister.

In reply to questions on the high energy costs and capacity charges carried over by successive governments, the minister said expensive power continues to pose a serious problem to industry including manufacturing, information technology, mining and other energy-intensive industries.

He said the government, in partnership with Energy Minister Awais Leghari, had already taken steps to remove cross-subsidies for industry and was pursuing changes through wheeling policy and other measures to increase efficiency in the electricity sector.

Read More : Solar panels, inverters, lithium batteries’ prices soar ahead of budget

The government is moving from short-term relief to more extensive, long-term structural reforms, the minister said. These efforts are to be expected to bear fruit in the coming years rather than immediately, he said.

Privatisation of energy distribution companies (DISCOs) is a crucial part of the reform agenda. The minister said three DISCOs had already been awarded expression of interest (EOI) and two more EOIs will soon be awarded. He said he was certain that the first batch of distribution businesses would be handed over to private sector management by the end of the year, with the rest to follow in phases.

There would need to be more regulatory control to accompany privatisation and work was beginning to ensure the regulatory system would be robust and effective, he said.

He also emphasised the ambitions to shift away from the existing single-buyer energy market model, controlled through the Central Power Purchasing Agency (CPPA), to a competitive multi-buyer system. “The change will help dismantle existing monopolistic structures and improve market efficiency,” he said.

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PSX opens on a positive note, gains over 1,300 points in early trading

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 The Pakistan Stock Exchange (PSX) opened Tuesday’s trading session on a positive note, with the benchmark KSE-100 Index climbing more than 1,300 points.

The index surged to 164,368 points during early trading, reflecting a strong upward movement in the market.

In the previous session, the benchmark index had settled at 163,038 points.

The latest rally marks a positive start to the trading day, with the market gaining momentum after the previous session’s close.
 

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Petrol price rises by Rs1.54, diesel by Rs2.16 per litre

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Pakistan latest change in government gasoline prices has caused an increase in petrol and high-speed diesel prices and the cost of both major petroleum products has been increased ahead of Tuesday (October 27).

An official statement released by the Petroleum Division stated that the petrol price has been hiked by Rs1.54 per litre while high speed diesel (HSD) has become costlier by Rs2.16 per litre.

The price of petrol will be Rs379.25 per litre after the modification, while the new price of high speed diesel has been fixed at Rs395.82 per litre. The Oil and Gas Regulatory Authority (OGRA) has changed the ex-depot prices for October 27, 2026, and the revised rates have been calculated as per the petroleum pricing system of the government.

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Yen slips ahead of central bank bonanza, dollar firms on tech rebound

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The Japanese yen eased against the US dollar on Tuesday, further eroding last week’s safe-haven gains, underpinned by a risk-on mood and ​a weaker euro ahead of key central bank meetings this week that will influence the global rates outlook.

The yen ‌was 0.16% weaker at 157.73 per dollar, inching further away from the one-month high it touched last week ahead of the Bank of Japan policy decision later this week. The yen had lost ground on Monday too.

The BOJ is set to keep interest rates steady at 1.25% in a two-day meeting concluding on Friday, ​but signal its readiness to continue raising borrowing costs on mounting price pressures.

A key gauge of Japan’s service-sector inflation rose 3.7% ​in September from a year earlier, data showed on Tuesday, a sign of increasing price pressures that ⁠will likely keep the central bank on track for further interest rate hikes.

“We expect the BOJ will conclude that the underlying rate of ​consumer price inflation is at a level generally consistent with the 2% price stability target,” analysts at MUFG said in a note.

However, simply ​touching the target once is not enough, the analysts said, adding that the BOJ will now shift from a focus on the downside risks to inflation to a stance of monitoring risks in both directions.

The yen was among the best-performing major currencies last week, as AI jitters in the equity market spurred a ​haven rush into the currency.

Markets price slightly better-than-even odds of a December BOJ hike, so there is plenty of room for a ​rebound in the yen should Governor Ueda strike a hawkish note, said Ebury analysts in a note.

“We still favour another hike at the last meeting of ‌the ⁠year, though whether the BOJ will be prepared to commit to that just yet is unclear.”

Apart from the BOJ, four other major central banks will announce policy decisions this week. The BOJ’s meeting follows that of the Fed, which is seen skipping a hike at its two-day meeting concluding on Wednesday.

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The European Central Bank is also set to keep rates unchanged at 2.5% on Thursday. New Zealand’s and Canada’s central ​banks are expected to raise rates ​this week.

DOLLAR FIRMS ON RISK-APPETITE ⁠REVIVAL

The dollar index held steady near a one-week high on Tuesday at 102.04 as a tech-led rebound on Wall Street revived appetite for risk, while investors await megacap earnings and the US midterm elections.

Risk ​appetite returned overnight after Anthropic’s IPO filing and Meta’s (META.O), opens new tab $95 billion equity plan rekindled the artificial intelligence trade.

The ​dollar was also ⁠underpinned by a weaker euro , which fell to a near two-week low against the greenback as worries over France’s fiscal health piled pressure on the single currency. The euro last fetched $1.1165, down about 1.4% this month.

A selloff in French government bonds that drove the country’s debt-risk premium to ⁠its highest ​since the 2011 sovereign debt crisis has rekindled concerns about financial stress across the ​euro zone.

The Brazilian real stabilised after it fell sharply against the US dollar after President Luiz Inacio Lula da Silva won a historic fourth term on Sunday against Senator Flavio ​Bolsonaro, the eldest son of former President Jair Bolsonaro. 

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