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Strike called off as petroleum dealers’ margin raised by Rs1.6 per litre

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  • Dealers initially termed Rs1.64 per litre increment “insufficient”.
  • Raise in margins to be applied in four phases.
  • Dealers’ margin to rise to Rs 7.64 per litre after two months.

KARACHI: In a bid to convince petroleum dealers to call off the strike they threatened last week, the government agreed to increase their profit margin on petroleum products by Rs1.64 per litre, after hours-long negotiations, The News reported Tuesday.

Pakistan Petroleum Dealers Association (PPDA) Chairman Abdul Sami Khan announced the deal made in this regard.

The government had proposed increasing the dealers’ margin by Rs1.64 per litre. 

The dealers — who had initially sought an increase of Rs5 per litre — initially opposed this increment as “insufficient” in the face of the increased cost of their business. 

However, they later accepted the offer. 

The rise in dealers’ margins will be applied to the consumer price in four phases. 

It will be raised by Rs.0.41 per litre every fortnight, and the dealers will receive a full raise of Rs1.6 per litre in two months, bringing the dealers’ margin to Rs7.6 per litre after 2 months from the current Rs6 per litre.

Last week, the petrol pump owners’ representative, PPDA, announced shutting down fuel pumps across the country from July 22, demanding an increase in profit margins amid an inflation crisis.

In a statement, the association said the State Minister for Petroleum, Musadik Malik, was informed about their concerns but to no avail.

The official communique said interest rates and inflation had hit operators’ businesses and called for the dealership margin to be increased.

It said sales have slumped by 30% due to Iranian fuel being smuggled into the country.

However, the following day, the PPDA deferred its strike for two days after the association members negotiated with the petroleum minister, who arrived in Karachi on Friday to convince the PPDA to call off the nationwide strike.

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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