Business

Karachiites to pay additional Rs1.52 in surcharge

Published

1 year ago

Farwa

Federal cabinet nod is necessary to notify it.
It will be collected for a span of one year.
Federal government had requested increase.

ISLAMABAD: On the federal government’s request, the National Electric Power Regulatory Authority (Nepra) Thursday approved a hike of Rs1.52 per kWh surcharge for Karachi Electric (KE) consumers, which will translate into a whopping Rs24.50 billion burden on Karachiites.

The sole power supplier of Pakistan’s biggest city — in terms of population — will be able to collect this additional surcharge for a period of a year, from December 2023 to November 2024, according to Nepra.

Although the power regulator has approved the rise in the tariff, the federal cabinet nod is necessary to notify it. The increase will not affect the sole power provider’s lifeline customers.

“In view of the foregoing discussion, response of the MoE, and the fact that Motion has been filed under Section 3 1(8) of the NEPRA Act, which empowers the Federal Government for imposition of surcharge, and is being levied for fulfillment of the financial obligation of the Federal Government, the Authority has decided to allow the subject Motion i.e. recovery of Rs. 1.52/kWh from the consumers of K-Electric, except life line, for a period of twelve months from December 2023 to November 2024,” Nepra said.

The government has taken several measures to hike gas and power tariffs in a bid to curtail the circular debt and satisfy the International Monetary Fund (IMF) for releasing a much-needed loan under a short-term programme.

Pakistan is set to receive $700 million soon, which will boost the economically struggling nation’s foreign reserves and help it pay off debts and in terms of imports.

Expressing the commitment to further hike electricity and gas tariffs, caretaker Minister for Finance Dr Shamshad Akhtar had said that the interim government plans to increase gas prices in January next year to address the circular debt issue.

Addressing a press conference here at the Q Block last week, she said that under the IMF’s Stand-By Agreement Programme (SBA), it has been agreed to reduce costs in the energy sector and restore efficiency in the sector.

“The circular debt of the power and gas sectors has crossed 4 percent of Gross Domestic Product. Urgent action is needed to bring it down. We have started work in this regard and electricity and gas rates have been adjusted accordingly,” she added.

Business

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

Published

2 days 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

3 days 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

3 days 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.