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A public hearing on significant increases in gas prices is being held by Ogra.

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11 months ago

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The Oil and Gas Regulatory Authority (Ogra) conducted a public hearing in Lahore on Monday over the proposed rise in gas pricing. This is the third increase in the current fiscal year, requested by Sui Northern, with a significant jump of up to 147%.

The Sui Northern has requested an increase of Rs2,646.18 per mmbtu, resulting in a new average price of Rs 4446.89. This proposal comes after estimating a revenue gap of Rs189.18 billion. The next hearing is planned on Wednesday (March 27) in Peshawar.

If the proposal is granted, it will result in an escalation of gas prices for consumers in Punjab. The application of Khyber Pakhtunkhwa and Islamabad will commence on July 1.

Following the conclusion of the hearing, Ogra officials stated that there is no need to increase gas prices based on the demand from Sui Northern. They mentioned that a final decision would be made after finishing the public hearings and considering the complaints.

The Lahore Chamber of Commerce and Industry (LCCI) and the All Pakistan Textile Mills Association (APTMA) have denounced the plan as a cruel measure and have resolved to vehemently oppose it during the hearing.

According to LCCI Vice President Adnan Butt, the gas prices in Pakistan are already significantly higher than those in other countries. He warns that any additional increase in prices would lead to the closure of enterprises.

Similarly, the APTMA believes that the Sui Northern officials should be questioned about their performance, and there should be a reduction in gas and power rates.

Last week, the Oil and Gas Regulatory Authority (OGRA) conducted public hearings in Karachi and Quetta. The Sui Southern Gas Company (SSGC) submitted a proposal to OGRA, asking for an increase of Rs 324.3 per million British thermal units (mmbtu) in the average price of natural gas, which currently stands at Rs 1416.50 per mmbtu. If approved, this rise is estimated to impose an additional cost of Rs 79.63 billion on customers.

The proposal for the next financial year has projected a total income shortfall of Rs79.63 billion. Out of this amount, Rs56.69 billion is attributed to domestically generated gas, while Rs22.93 billion is tied to RLNG.

Following the hearings, a conclusive determination will be transmitted to the federal government. If Islamabad gives its approval, Ogra will release a notification to raise the gas rates.

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The total amount of Pakistan’s liquid foreign reserves is $15.95 billion.

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As of February 14, Pakistan’s total liquid foreign reserves were $15,947.9 million, with the State Bank of Pakistan’s (SBP) holdings being $11,201.5 million.

Official figures for the week ending February 14, 2025, show that the central bank’s liquid foreign exchange reserves rose by $35 million to $11,201.5 million.

Commercial banks maintained net foreign reserves of $4,746.4 million during the period under review, according to the breakdown of foreign reserves.

The nation’s total liquid foreign reserves as of the week ending February 07, 2025, were $15,862.6 million.

Of these, the central bank held $11,166.6 million in foreign reserves, while commercial banks kept $4,696 million in net reserves.

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In January 2025, RDA inflows reach 9.564 billion USD.

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2 weeks ago

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Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.

The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.

Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.

By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.

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FBR lowers Karachi’s built-up structure property valuation rates

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A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.

The notification said that built-up structural values on residential property will be gradually reduced.

A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.

In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.

Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.

Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.

In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.

In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.

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