Business

‘Gas bomb’ dropped on masses as govt approves massive price hike

Published

1 year ago

Farwa

Gas tariff jacked up to 173% for non-protected domestic consumers and 136.4% for commercial users.

Tariff hiked up to 173% for non-protected domestic consumers.
Gas rates for commercial users jacked up by 136.4%.
Monthly fixed charges also increased to Rs400 for protected users.

ISLAMABAD: The caretaker government on Monday dropped a gas bomb on inflation-hit masses by approving a massive increase in gas prices which will come into effect from November 1 (Wednesday).

The government has hiked the local gas tariff up to 173% for non-protected domestic consumers, 136.4% for commercial, 91% for export, and 83% for the non-export industry.

As per the approved summary, the fixed monthly charges for protected consumers were revised upward from Rs10 to Rs400, for non-protected from Rs460 to Rs1000, and for higher slabs up to Rs2000.

The price for non-protected users consuming up to 0.25 cubic meters will be Rs121 per mmbtu, up to 0.5 cubic meters will be Rs150 per mmbtu, for users with 0.60 cubic meters Rs200 per mmbtu, while 0.9 cubic meters Rs250 per mmbtu.

Rates for people using 1 cubic metre of gas per month have been jacked up from the previous Rs400 per mmbtu to Rs1,000 mmbtu.

Those with gas usage of up to 1.5 cubic metres — who were previously paying Rs600 per mmbtu — will now have to pay Rs1,200 per mmbtu.

Meanwhile, small commercial users such as local tandoors will pay Rs697 per mmbtu from November 1.

The power sector will have to pay Rs1,050 to Rs3,890 per mmbtu. The cement industry will pay Rs4,400 per mmbtu.

Rates for the export industry have been set from Rs2,100 to Rs2,400 per mmbtu, whereas non-export industries will pay between Rs2,200 to Rs2,500 mmbtu.

The Power Division, in its press release, maintained that the interim setup had to increase gas prices following Oil and Gas Regulatory Authority’s advice to avoid Rs400 billion being added to the already ballooning circular debt.

The authority highlighted that 57% of the domestic gas connections fall in the protected category where there is no increase in gas price.

“In the name of affordability, some of the most profitable businesses of the country are availing the cheapest natural gas. This has unduly enriched certain sectors while depriving lowest income class including poor farmers and small-scale industries,” the statement mentioned.

Business

SFD and Pakistan Sign Two Deals Totaling $1.61BLN

Published

1 day ago

Farwa

Two agreements totaling $1.61 billion have been inked by Pakistan and the Saudi Fund for Development to improve their bilateral economic cooperation.

Business

Saudi Arabia and Pakistan sign an MOU to strengthen their auditing industry collaboration.

Published

1 day ago

Farwa

A spokesperson for the office of the Auditor-General of Pakistan (AGP) announced on Monday that the two countries have signed a Memorandum of Understanding (MoU) to strengthen cooperation in public sector auditing through improved cooperation between audit institutions of both countries, as well as training programs and the exchange of trainers.

This comes as a group from Saudi Arabia’s General Court of Audit (GCA), headed by GCA President Dr. Hussam bin Abdulmohsen Alangari, arrived in Pakistan on Sunday for a four-day visit.

The agreement was signed during AGP Muhammad Ajmal Gondal’s meeting with the Saudi delegates, aiming to strengthen audit cooperation, enhance knowledge-sharing, and improve governance, transparency and accountability in government spending.

Public relations officer Muhammad Raza Irfan of the AGP’s office told Arab News that the deal will further advance bilateral collaboration between Saudi Arabia and Pakistan in addition to enhancing professional ties between the two nations’ auditing institutions.

In a statement released from his office, AGP Gondal was cited as saying, “This collaboration marks a significant step toward fostering international cooperation in auditing.”

“The exchange of ideas and methodologies will undoubtedly strengthen our capacity to meet emerging challenges and set new benchmarks for public accountability.”

Discussions at Monday’s meeting focused on fostering closer ties between the Supreme Audit Institutions (SAIs) of Pakistan and Saudi Arabia, sharing innovative audit methodologies, and planning collaborative initiatives for the future, according to the AGP office.

The two parties decided to increase their knowledge of theme, environmental, and impact audits as well as to exchange best practices in audit standards, performance audits, and citizen participation audits.

The statement added, “It also agreed to exchange trainers, address new auditing challenges, plan cooperative audits, including a performance audit on the oil and gas sector in 2025, and work together on training programs.”

Both sides reaffirmed their shared commitment to promoting transparency, accountability and excellence in public sector auditing.

Business

The government chooses to continue the PIA privatization process.

Published

1 day ago

Farwa

The Pakistan International Airlines (PIA) privatization process will be restarted by the federal government, and expressions of interest would be requested within the month. Officials stated that the Prime Minister’s Committee on Privatization will convene to make the final decision.

Usman Bajwa, the secretary of the Privatization Commission, gave a briefing on the updated procedure to the National Assembly Standing Committee on Privatization. Additionally, he disclosed that airlines other than PIA are now able to compete with regional carriers thanks to IMF-approved aircraft tax concessions.

Farooq Sattar, the chairman of the privatization committee, underlined the importance of giving PIA workers at least five years of job security. Employee protection will continue to be a top priority and will be resolved prior to bidding, the Privatization Commission promised.

PIA’s liabilities totaling Rs650 billion have already been assumed by the government, and an additional Rs45 billion in outstanding debts must be paid before the privatization process can begin. As of the now, PIA has assets around Rs155 billion and liabilities worth Rs200 billion. It will be necessary for the new buyer to expand the fleet by 15 to 20 aircraft.

Additionally, the Privatization Committee has sought a timeline for the privatization of Faisalabad, Gujranwala, and Islamabad Electric Supply Companies. Officials stated that after the appointment of a financial advisor, the privatization process for these companies will accelerate.