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Pakistan plans new electricity, gas subsidy system from 2027

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Pakistan has fast-tracked changes in the energy sector to meet the International Monetary Fund (IMF) conditions and directions, and the government has been working on revamping the present electricity and gas slab and cross-subsidy systems.

Sources said the planned approach intends to confine electricity and gas subsidies to the deserving and low income clients.

The plan provides for the enactment of a new mechanism of electricity subsidies in January 2027, while the new system for gas consumers is expected to be implemented on July 1, 2027.

In a bid to enhance transparency and efficiency, the Power Division has started work on a specialized socioeconomic registry of qualified users with support from the World Bank.

The government expects to finish the registration of eligible consumers by November this year, sources added.

The data collected will be verified and then compared to the main Benazir Income Support Program (BISP) database. This will allow officials to determine who actually qualifies for financial help and subsidies.

The objective is to scrap the existing system of tariff differential subsidy and cross subsidy for electricity by January 2027 and to take gas consumers on board with the same database by July 1, 2027.

The reformed subsidy structure is aimed at relieving the long-standing pressure of the circular debt on the energy sector.

The sources claimed electricity distribution companies (DISCOs) also filed formal applications for revision of the benchmark electricity rate.

Meanwhile, the government has briefed the IMF about preparations for privatization of electricity distribution businesses and administrative reforms. The initiatives are intended to help achieve the objectives of permanently reducing circular debt and enhancing the energy industry.

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Dollar steady ahead of Fed decision, kiwi slumps after RBNZ holds

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– The U.S. dollar was steady at a two-week high on Wednesday ahead of central bank policy decisions, with the Federal Reserve widely expected to maintain its policy interest rate unchanged but signal the likelihood of any December rise.

Most dollar counterparts were flat ahead of the Fed decision. The euro was barely changed at $1.1129 and the British pound was also barely changed at $1.3307. The dollar last traded 0.1% weaker at 157.81 yen, having swung between gains and losses.

The kiwi dollar fell as much as 1.7% to $0.5585 as the Reserve Bank of New Zealand surprised the market by keeping rates at 2.75%. A Reuters poll found 22 out of 27 experts expected the central bank to boost rates.“The market just got that wrong,” said Mike Houlahan, a director at Electus Financial Ltd in Auckland. “Only 10 days left until the election,” he said. “It’s good manners not to get involved in politics.”

The Australian dollar was 0.1% firmer at $0.7035 after inflation figures of 1.3% in the third quarter of the year, after 0.6% the previous quarter. The trimmed mean measure of core inflation came in at 1% as expected by the market, putting the annualised rate at an above-target 3.6%.

Governor Michele Bullock told lawmakers on Wednesday that the Reserve Bank of Australia will debate whether four rate rises this year will be adequate to return inflation to goal at a policy meeting next week.

For US traders, mostly looking for no change in central bank policy. The CME Group’s FedWatch tool indicated fed funds ​futures are pricing ⁠a 91% chance the Federal Open Market Committee would maintain its policy interest rate on hold.”The Fed doesn’t have to hike today to move markets,” said Chris Weston, chief research officer at Pepperstone Group in Melbourne. It just needs to alter the estimated probability of trekking in December.

The US dollar index, which measures the greenback against six currencies, climbed 0.3% to 102.40, its best since October 14. The yield on the US 10-year Treasury note was flat at 4.9967%.

In the cryptocurrency market bitcoin was unchanged at $80,736.07 while ether edged up 0.1% to $2,345.25.

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PSX maintains positive momentum as KSE-100 reaches 164,633 points

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The Pakistan Stock Exchange (PSX) on Wednesday continued its bullish trend with purchasing trend.

In early trade, the benchmark KSE-100 Index added 166.25 points, or 0.10 percent, to 164,633.45 points.

The index entered the morning on a bullish note after a solid performance in the previous trading session where it gained 1,428.73 points or 0.88 per cent to close at 164,467.20, reported Business Recorder.

In the recent session, the benchmark index swung between an intraday high of 164,918.95 and a low of 164,502.45. It exchanged 19.23 million shares of stock. The reported trade value was 1.48 billion.

The market’s newest rally came after two straight days of advances and reflected ongoing purchasing enthusiasm in a broad range of large sectors.

The benchmark moved higher on Tuesday as investors bought into oil and gas marketing companies, commercial banks, refineries and cement industries, as well as technology and communication sectors. The index climbed 663.59 points on Monday after a chaotic trading session.

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Pakistan destroys Afghan Taliban posts after civilians targeted in S Waziristan

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Several installations of Afghan Taliban were demolished by Pakistan’s armed forces after they targeted civilian population, martyring one and injured five along Pak-Afghan border in Angoor Adda South Waziristan (Lower) on Tuesday nite.

Firing and shelling along the Pakistan-Afghanistan border hit a residential area in Angoor Adda, Khyber Pakhtunkhwa, security sources said, killed a civilian and injuring five members of a family.

Read More: Afghan border fire in South Waziristan: One civilian dead, five injured

The tragedy came amid reported cross-border clashes, with a shell hitting a house in the region and killing residents, the sources added.

Security sources held the Afghan Taliban regime responsible for the incident noting that civilian areas were targeted during the exchange of fire. The incident, which resulted in deaths and injuries from the shelling, provoked indignation among local residents.

The Pakistan Army replied immediately to the aggression from the Afghan side. In the tit-for-tat operation, insiders added, Pakistan’s armed forces destroyed many Afghan security checkpoints.

Security sources said the Pakistani troops deployed near the Pakistan-Afghanistan border were fully prepared to respond to any possible invasion.

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