Business

Pakistan to ask Iran for relaxation on gas project deadline

Published

1 year ago

Farwa

Pakistan’s delegation will hold talks in Tehran today.
Islamabad will have to pay $18 billion penalty after deadline.
Consultants say US sanctions not to impact Pakistan’s economy.

ISLAMABAD: Pakistan will ask Iran on Tuesday to provide relaxation on the Feb-March 2024 deadline to avert the penalty of $18 billion for not laying down a pipeline in its territory, The News reported.

Iran asked Pakistan last year to construct a portion of the Iran-Pakistan (IP) gas line project in its territory till February-March 2024 or pay a $18 billion penalty.

Pakistan was supposed to lay down the 781-kilometre pipeline from the Iranian border to Nawabshah and start consuming 750 million cubic feet of gas daily. Tehran has already laid a pipeline from a gas field to the point bordering Pakistan.

“Pakistan’s delegation will hold talks in Tehran today (November 14, 2023) with Iranian authorities and request them not to move the international arbitration seeking the imposition of an $18 billion penalty. Energy Minister Muhammad Ali may reach Tehran today (Tuesday) but it depends upon the clearance by the PM office. However, relevant officials have reached Tehran. The Energy minister arrived back today (Monday) from Kyrgyzstan,” senior officials of the Energy Ministry told The News.

“Pakistan will also sensitise Iranian authorities of endeavouring to implement the IP gas line through a third party to avoid the US sanctions imposed against Iran for its nuclear ambitions. The government has also approached the relevant US departments to find out about the impact of curbs but they have not responded citing a lengthy process to analyse the impact. The French consultants are of the view that US sanctions will have no impact on Pakistan’s economy,” the officials said.

The Inter-State Gas Systems (ISGS) of Pakistan and the National Iranian Gas Company (NIGC) signed a revised agreement in September 2019 for the pipeline. Under this accord, Iran would not approach any international court for any delay till 2024. Afterwards, Iran would be free to move to France-based international arbitration and seek an $18 billion penalty.

The officials said that Iranian authorities will be sensitised about Pakistan’s endeavours to restructure the IP gas pipeline project to avert the US sanctions.

“Under the new option, Pakistan may not purchase the gas directly from Iran but through a third party. Iranian authorities are also on the board for the proposal.”

Since Pakistan cannot afford US sanctions it is pedalling very carefully to implement the project,” the sources said.

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.