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

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11 months ago

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  • 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.

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It is anticipated that 150 ships would arrive at Gwadar by the year 2045, allowing the port to handle fifty percent of all imports.

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3 days ago

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In an effort to strengthen the port’s economic importance, the Federal Government has made the decision to direct fifty percent of all imports from the public sector to Gwadar Port.

By taking this action, which has the backing of the Special Investment Facilitation Council, the port’s financial situation is going to be improved.

The Cabinet will be presented with a summary of imports through Gwadar by the Ministry of Maritime Affairs, which will take place after Prime Minister Shehbaz Sharif’s recent trip to China.

When the next Cabinet Meeting takes place, Ahsan Iqbal, the Federal Minister for Planning, Development, and Special Initiatives, will examine the Chinese offer for the Karachi to Hyderabad Section of the ML-1 Project and bring it to the Cabinet.

Company preparations for the Shanghai International Import Expo, which will take place in November 2024, are being made by the Board of Investment and the Ministry of Commerce of Pakistan.

One of the most important aspects of the China-Pakistan Economic Corridor is the Gwadar port, which serves as a significant commerce route connecting China, the Middle East, Africa, and Europe. At this time, the Gwadar Port is able to accommodate two huge ships, and by the year 2045, it is anticipated that it would be able to handle up to 150 ships.

By developing the Gwadar Port, regional connectivity would be improved, employment will be created, and international investment will be attracted.

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The price of gold in Pakistan has experienced a significant surge.

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3 days ago

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Gold prices in Pakistan surged significantly on Thursday following two consecutive days of decline, with the price per tola rising by Rs2,000 to reach Rs262,100. This increase was in accordance with the downward trend in international market values.

The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reported that the price of 10 grams of 24-karat gold rose by Rs1,714, reaching Rs224,708.

Conversely, the world gold market experienced an upward trajectory. According to the APGJSA, the global price of gold surged to $2,503 per ounce following a $22 gain during the trading session.

The local market experienced a significant decline in silver prices, decreasing from Rs50 to Rs2,900 per tola after a prolonged period.

The local market’s gold prices remain subject to the ever-changing dynamics of the international market, as well as domestic considerations such as currency exchange rates and domestic demand.

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The government has not met the deadline set by the International Monetary Fund (IMF) for the approval of a $7 billion loan.

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4 days ago

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On Tuesday night, there were virtual talks between representatives of the Finance Ministry and the IMF delegation, with the main topics being external finance and income generation.

According to people familiar with the situation, no date has been set for the IMF’s Executive Board to approve the loan despite the ongoing negotiations.

Officials from the Finance Ministry informed the IMF mission about the government’s initiatives to get outside funding during the discussions. Updates on loan rollovers and fresh finance commitments from allies were included in this. According to sources, the IMF has received a schedule, and loan rollovers are expected to be finished by the end of next week.

The $12 billion in debt must be rolled over before the loan can be approved by the Executive Board, according to the IMF mission.

In the virtual discussions, representatives of the Federal Board of Revenue (FBR) conversed with the IMF team over the revenue deficit. The FBR must reach its revenue goals for this month, according to the IMF mission. As a result, the IMF has asked the FBR to submit a thorough strategy outlining how it will close the gap left by the shortfall and guarantee that revenue goals are reached.

Apart from the conversations on outside funding, there are rumors that the Finance Ministry is actively holding talks with commercial banks in order to obtain new funding. According to reports, negotiations are taking place with four distinct sources for commercial loans, which are anticipated to support the government’s overall financial plan.

Finance Minister Muhammad Aurangzeb disclosed on Tuesday that the IMF was in favor of introducing targeted subsidies. He said that qualifying recipients might receive these subsidies through the Benazir Income Support Programme (BISP).

In order to guarantee consistency, the minister announced that this week’s talks with chief ministers will focus on implementing a similar policy across the country. He was having a casual conversation in parliament with the journalists.

In response to queries about outside funding, Aurangzeb revealed a $2 billion deficit and said that talks to close this gap are progressing. He stressed how crucial it is to obtain business loans.

He went on, “At this point, there’s a need to secure an agreement for commercial loans, not exactly their issuance,” emphasizing that debt rollover negotiations are nearing their conclusion and doing well. The minister expected that these developments would shortly be reported to the governments of allied countries by relevant authorities.

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