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

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

36 minutes ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.

Business

Bulls in the stock market are still going strong.

Published

38 minutes ago

Farwa

As the bullish trend persisted on the Pakistan Stock Exchange (PSX) on Monday, the KSE-100 index soared beyond the 115,000 level.

The PSX continued its upward trend from the weekend, and the KSE-100 index gained 600 points, reaching 115,048 points in early trading.

The index closed at 114,398 points on Friday, up 685 points.

Business

Issues Affecting Pakistan’s Textile Mills Industry: The Government Is Determined To Address Textile Industry Concerns: FM

Published

3 days ago

Farwa

Muhammad Aurangzeb, minister of finance, has stated that the government is firmly committed to helping the textile industry in every way possible.
He made this pledge today in Islamabad during a meeting with the All Pakistan Textile Mills Association’s leadership.
In order to guarantee the long-term sustainability and future expansion of Pakistan’s industrial sector, the Minister also reaffirmed the government’s commitment to addressing important tax, energy, and funding challenges.
He welcomed the APTMA office-bearers and gave the delegation his word that the government is committed to resolving the issues facing the textile industry since it understands how important it is to Pakistan’s economy.
Muhammad Aurangzeb underlined that resolving the fundamental issues facing the sector is essential to establishing an atmosphere that is favorable for industrial expansion, promoting economic stability, and bolstering the country’s overall growth trajectory.