Business

Domestic consumers to receive gas eight hours a day in winter

Published

2 years ago

Farwa

Gas will be provided 3 hours in morning, 2 at noon, 3 at night.
PM desired domestic consumers should be kept on top priority.
Commercial consumers to be provided RLNG in Punjab: official.

ISLAMABAD: The government has decided to adjust the gas load management plan under which domestic consumers will receive gas for eight hours a day for cooking times in winter, The News reported Friday.

The consumers will be provided gas in the morning from 6am to 9am, two hours from 12 noon to 2pm for lunch and three hours from 6pm to 9pm for dinner.

“More importantly, commercial consumers will be provided RLNG in Punjab except for roti tandoors, which will be provided system gas (local gas),” one of the top officials of the Energy Ministry told The News.

“The CNG, fertiliser, cement and non-export industry will be having zero gas supply,” said the official. “If the winter season peaks from December 15 to January 31, the gas supply may be cut off to captive power plants of the export industry and for the power sector, the existing gas supply of 200 mmcfd may be halved.”

He said the gas deficit in the country for the winter season 2022-23 has been worked out at 1.35 bcfd (billion cubic feet gas per day). “It has been worked out that the gas deficit would stay at 900-1,000 mmcfd in the SNGPL system that covers Punjab and KPK.

The gas availability in the SNGPL system would remain in the range of 1,520 mmcfd (770 mmcfd of local gas plus 750 mmcfd of RLNG) against the demand of 2,100-2,500 mmcfd. The gas consumers in SNGPL stand at 7.5 million (6.5 million in Punjab and 1 million in KPK).”

Likewise, the gas availability in the Sui Southern (SSGCL) system would be in the range of 925-1,000 mmcfd against the demand of 1,250-1,500 mmcfd. The gas deficit in the SSGC system has been estimated in the range of 250-350 mmcfd.

The gas supply to the CNG, fertiliser, cement, and non-export industries will be zero.

The Petroleum Division has also sought the amount of Rs105 billion for injecting the costly RLNG into the domestic sector for the winter season 2022-23.

Prime Minister Shehbaz Sharif has desired that domestic consumers should be kept on top priority and should be provided gas with pressure. And this is only possible if RLNG is diverted to domestic consumers of Punjab and KPK.

Interestingly, the cost of RLNG, which was earlier diverted to domestic consumers in the last four winters, has not been recovered. The cost of RLNG that has so far been injected into the domestic sector stands at Rs108 billion and this amount has not been recovered. The country’s gas sector is already soaked in circular debt of Rs1,500 billion. The Petroleum Division would put up this case before the premier for approval of Rs105 billion to ensure the diversion of RLNG so that gas to domestic consumers could be provided for cooking times at required pressure.

“Currently, the sale price of natural gas stands at Rs400 per MMBTU whereas the RLNG cost is at $13 per MMBTU (Rs3,100). The Petroleum Division wants the differential to be paid by consumers through the revenue requirements of gas utilities.”

Under the amended act, RLNG is no longer called a petroleum product but has been renamed as a gas of which the cost can now be recovered from domestic consumers through revenue requirement petitions of Sui Southern and Sui Northern.

The gas supply to captive power plants of export sectors would also be shut down if winter turns more severe. Right now, the captive power plants are being provided 50% gas supply. However, for processing in the textile sector, the gas of 40-42 mmcfd would continue.

The government is extending electricity at the rate of Rs19.99 per unit, which is why it would halt the gas supply to captive power plants. Right now the power sector is currently being provided 165-200 mmcfd of gas, which would be halved during the peak winter.

Business

The amount of trade between Saudi Arabia and Pakistan hits $700 million.

Published

5 hours ago

Farwa

Through the Special Investment Facilitation Council (SIFC), Pakistan’s trade connections with Saudi Arabia have grown significantly, with bilateral trade volume rising from $546 million to $700 million and exports to the Kingdom growing by 22%.

As bilateral economic cooperation continues to grow, Saudi investors have shown a strong interest in Pakistan’s construction, energy, agricultural, and information technology sectors. The objective for exporting IT services between the two countries has been raised from $50 million to $100 million.

Saudi Arabia has set up a help desk dedicated to making it easier for Pakistani IT companies to register in the Kingdom in order to expedite commercial procedures. The goal of this program is to speed up economic collaborations between the two countries and lower administrative barriers.

The well-known Saudi restaurant chain AlBaik has revealed plans to open locations in Pakistan, which is a big step for the food service industry and should lead to the creation of new job possibilities in the area.

Officials have noted that stronger business links between the two countries lead to greater economic stability, and the SIFC has played a crucial role in promoting these trade advancements. For bilateral trade and investment projects, the Council remains a crucial facilitator.

According to a trade official with knowledge of the developments, “the establishment of dedicated support mechanisms, such as the help desk for IT companies, demonstrates a commitment to long-term economic partnership,” The goal of these programs is to improve the conditions for commercial collaboration between the two nations.

The increasing amount of trade and the diversity of investment sectors show that Saudi Arabia and Pakistan’s economic ties are changing as both countries seek to deepen their business alliances in a number of industries.

Business

After more than 50 years, Bangladesh and Pakistan resume direct trade.

Published

5 hours ago

Farwa

After more than 50 years, the two governments will resume direct bilateral trade, with Bangladesh’s food ministry announcing Sunday that it will receive a supply of 25,000 tonnes of rice from Pakistan next month.

After former Prime Minister Sheikh Hasina was overthrown last August, relations between Bangladesh and Pakistan have begun to improve after decades of tense relations.

Since then, there have been increased bilateral interactions between Bangladesh and Pakistan. Nobel laureate Muhammad Yunus, the interim government’s senior adviser, has met twice with Pakistani Prime Minister Shehbaz Sharif.

According to the food ministry, Dhaka completed an agreement earlier this month to import grains from Pakistan.

“On March 3, the first shipment of 25,000 tonnes will reach Bangladesh,” Zia Uddin Ahmed, a ministry assistant secretary, told Arab News.

“This is the first time that Bangladesh has started importing rice from Pakistan at the government-to-government level since 1971.”

Following direct maritime contact between the two South Asian countries in November—a Pakistani cargo ship stopped in Bangladesh for the first time since 1971 with imports and exports arranged by private companies—their trade relations grew.

Resuming trade with Pakistan is a significant step for Bangladesh, according to Amena Mohsin, a lecturer at North South University and a specialist in international relations.

“We want to see progress in our bilateral relationship with Pakistan. Most significantly, we are currently going through a low point dispute with India, even though we constantly diversify our partnerships.

This most recent move to purchase rice from Pakistan is really significant in this context,” she told Arab News.

Business

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

Published

3 days ago

Farwa

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.