Business

Gas tariff set to increase by up to 100%

Published

1 year ago

Farwa

Summary for new gas tariffs finalised, sent to ECC for approval.
Gas sector’s circular debt reached Rs2,700 billion.
Up to 1 mmBtu usage price to go up from Rs2,000 to Rs3,500.

KARACHI: The gas tariffs are set to go up by up to 100% for different categories of consumers in line with the conditions of the International Monetary Fund (IMF) to control the mounting circular debt, The News reported on Tuesday.

According to the report, the summary for new gas tariffs has been finalised and submitted to the Economic Coordination Committee (ECC) for approval.

Sources said that once the summary sailed through the ECC, it would be submitted to the federal cabinet. “The new rates would be applicable with effect from Oct 1 after the federal cabinet’s approval,” they said.

The gas sector’s circular debt has reached Rs2,700 billion.

According to the proposal, up to 1 mmBtu usage price to go up from Rs2,000 to Rs3,500. The sources noted that circular debt would increase by Rs46 billion if gas prices were not hiked by the end of the current financial year and the shortfall of the companies will be in the vicinity of Rs185 billion.

The proposal encompasses a substantial adjustment in fixed monthly charges for protected gas consumers.

Under the plan, it is expected that domestic consumers will be burdened with a hefty 100% increase in gas charges, while other consumers might face a proposed hike of 198.33%.

These tariff adjustments are part of the caretaker government’s strategy to address the persistent circular debt issue and fulfill commitments to the Fund, the sources said.

They said the decision would naturally fuel inflation in Pakistan, which is already at a record-high level thanks to the constant increase in fuel and energy tariffs, resulting in higher food prices, however, the gas price hike is a key condition of the IMF programme.

As the new tranche is to be released in November, the gas sector’s circular debt reduction is a must under the IMF condition, which can be done only through a hike in gas prices.

Business

February 7, 2025: The value of the Pakistani Rupee (PKR) in relation to the US dollar is unchanged.

Published

5 hours ago

Farwa

KARACHI: The open market exchange rate between the US dollar and the Pakistani rupee (PKR) was Rs279.4 on February 07, 2025, with a selling rate of Rs281.1. The interbank exchange rate between the US dollar and the Pakistani rupee is Rs 278.45, according to Interbank.

There was no movement in the US dollar (USD) from the previous closure of Rs278.

Business

The NORINCO Group is invited by CM Sindh to explore opportunities.

Published

1 day ago

Farwa

Chinese companies have been invited by Sindh Chief Minister Syed Murad Ali Shah to visit Karachi and other regions of Sindh Province in order to observe the quickly growing businesses and investigate prospects in fields like clean energy, infrastructure development, and public transit projects.

Speaking in Beijing to a delegation headed by the chairman of NORINCO International Co., Ltd., he stated that all facilities required would be provided by the governments of Sindh Province and Pakistan.

With assistance from NORINCO International, the Sindh Chief Minister stated that the Provincial Government will firmly urge North Vehicle and BeiBen to think about setting up a Vehicle Assembly Plant in the Dhabeji Special Economic Zone.

Business

A deal with Pakistan to fight financial crimes has been approved by the Saudi cabinet.

Published

1 day ago

Farwa

In order to strengthen collaboration in the fight against money laundering, terrorist financing, and associated crimes, the Saudi Press Agency announced this week that the Saudi cabinet, led by Crown Prince Mohammed bin Salman, had approved a memorandum of understanding (MoU) with Pakistan’s Financial Monitoring Unit (FMU).

Due to its severe money laundering and terrorism funding issues in recent years, Pakistan was added to the Financial Action Task Force’s (FATF) grey list in June 2018.

The nation was taken off the gray list in October 2022 after enacting extensive measures to fortify its financial system.

The FMU is Pakistan’s financial intelligence unit, created under the Anti-Money Laundering Act of 2010 and tasked with collaborating with foreign partners and evaluating reports of suspicious transactions.

According to the SPA, “the cabinet approved a memorandum of understanding regarding cooperation in exchanging investigations related to money laundering, terrorist financing, and related crimes between the Financial Monitoring Unit in the Islamic Republic of Pakistan and the General Department of Financial Investigation at the Presidency of State Security in the Kingdom of Saudi Arabia.”

The MoU is an indication of Saudi Arabia and Pakistan’s growing strategic partnership. A significant Pakistani diaspora resides in the Kingdom, and numerous Pakistani businesses have established a presence there.

Saudi Arabia has been a key supporter of Pakistan’s economy, bolstering its reserves with substantial deposits in the State Bank of Pakistan and offering deferred oil payment facilities.