Business

Govt increases gas tariff for 3 fertilizer plants to unify rates

Published

1 year ago

Farwa

Plants to pay Rs580/MMBtu for feedstock, Rs1,580 for fuel stock.
Petroleum division official says unification will save over Rs85bn.
Mari Petroleum Company also inked deal with three plants last year.

ISLAMABAD: In a bid to unify feed gas prices for fertiliser industry with industrial rates, the government has increased the gas sale prices for three fertiliser plants that use gas from Mari Petroleum Company Limited (MPCL), The News reported Tuesday.

The Oil and Gas Regulatory Authority (Ogra) notified the three plants — Engro Fertiliser, Fauji Fertiliser (Rahim Yar Khan), and Fatima Fertiliser — which are effective from October 1, 2023.

The plants will pay Rs580/MMBtu for feedstock and Rs1,580/MMBtu for fuel stock. The move comes amid concerns that the fertiliser industry is accused of not passing on subsidies to farmers. After the decision, these companies might further increase urea prices despite having substantially increased prices.

A senior official of the petroleum division said that although the unification will save over Rs85 billion, the allocation of these funds to small farmers remains unclear. With this revision in the gas sale price for fertiliser, the estimated annual net positive differential margin from the fertiliser sector would be over Rs16 billion for FY 2023-24.

It is to be noted that last December, Mari Petroleum Company inked a deal with three major fertiliser firms to sustain MPCL’s Habib Rahi Limestone gas production.

Mari said, “Mari Petroleum Company Limited has executed a Framework Agreement for the installation of Pressure Enhancement Facilities at Mari Gas Field, Daharki, Sindh with FFC, ENGRO, and FATIMA.”

The project entails constructing pipeline infrastructure, optimising the surface pipeline network, and installing compressors within the Mari Field.

Under the Ogra Ordinance, gas sale prices for fertiliser plants on SSGCL and SNGPL systems are revised from time to time; however, prices for MPCL’s plants have not been revised since October 23, 2020.

It is to be noted that there are 10 fertiliser plants in Pakistan, and six of them receive dedicated supplies from Mari’s network. Gas Supply Agreements for six Mari-based plants are valid until June 2024.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

1 day ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.