Business

Govt says gas to be provided only for 8 hours in winters

Published

1 year ago

Farwa

Minister says gas would be available only in morning, afternoon and evening in winters.

Gas to be available only in morning, afternoon, evening.
Minister says govt has ordered LNG to address shortage.
2 cargoes arranged for Dec, govt to also order more for Jan.

ISLAMABAD: Following a massive hike in gas tariff, Caretaker Energy Minister Muhammad Ali gave the masses another blow when he announced that gas will be available only for 8 hours a day during the winter season, reported The News on Friday.

In a press conference alongside interim Information Minister Murtaza Solangi, the energy minister said that the government would be unable to provide the gas round-the-clock and clarified that it would only be available in morning, afternoon and evening.

He also shared that two LNG cargoes have been arranged for December 2023 to address the shortage as much as possible and that they also plan to order two LNG cargoes for January 2024.

In Pakistan, 30% of the country uses piped gas, while 70%, mostly in rural areas, relies on burning wood and LPG. Of the piped gas users, more than half have been kept insulated from the tariff increase. He also noted that the rich people in urban areas were getting piped gas at 25% of the cost the poor were paying in rural areas for LPG.

The minister said that there are 10 million domestic gas connections and that the government did not hike the gas tariff for 57%, as they were mostly low-income people and were in protected slabs. However, he added that the fixed price of Rs10 had been increased to Rs400/month. Their monthly bill was earlier Rs200 to 900, which will now be Rs600 to 1,300/month. The government is trying it bring it near the price of LPG, he added.

Ali said that 57% of domestic consumers were consuming 31% of the total gas. After the increase, they would pay 11% of the total cost of gas for the domestic sector.

“3% and the wealthy were consuming 17% and paying 39%. Similarly, the middle slab consumers, which is 39% of the total domestic consumers, consume 52% of gas and pay 49%.”

He further said the gas tariff for the power sector and tandoors had not been increased. The fertiliser sector had also been insulated from the increase, he said.

In the commercial sector (including hotels and restaurants), the tariff has been equalised at Rs3,600 per mmBtu.

Earlier, there were two types of tariffs for them, one was Rs1,100/mmBtu for local gas consumers (mostly old connections) and Rs3,600/mmBtu for the RLNG-based supplies. The volume of local gas connection was 49% and RLNG was 51%.

Meanwhile, the tariff for the Compressed Natural Gas (CNG) sector has been increased to 80% of the petrol prices. Earlier, the CNG price was almost half of the petrol price. Now it will be 80% of the petrol price.

The minister said the caretaker government had frozen the energy sector circular debt after the increase of power and gas tariffs in accordance with its commitment to the International Monetary Fund (IMF).

However, he cautioned that in the next two years, the local pipeline gas would be unavailable to households and they would have to shift to liquefied petroleum gas (LPG) and would not lift the embargo on new gas connections.

The minister said the government had stopped the addition of energy sector circular debt and it would not increase from now, and that it had happened for the first time in the last 10 to 15 years.

He added that Economic Coordination Committee (ECC) had approved an increase in gas tariffs, and now, after the federal cabinet’s approval, the new prices would be implemented.

Business

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

Published

2 days 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.