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Israr Khan is a journalist based in Islamabad, Pakistan. He has more than 17-year experience in reporting and writing with Pakistan’s leading English language newspapers and international media and has enough skills in development sector research. Currently, Mr. Khan is working as an Economic and Financial reporter with Pakistan’s leading English language daily ‘The News International.' He has also worked as Editor for the US-based online news website ‘Pangea Today’ where he covered Afghanistan and Pakistan region. He is also the ‘Country Representative’ for the Press Emblem Campaign (PEC)--a Swiss-based media assistance group that fights for the protection of journalists around the globe and enjoys the UN special consultative status. He has also worked as ‘Administrative Assistant’ with the International Federation of Journalists (IFJ) Asia-Pacific. Furthermore, he has extensive expertise in infrastructure research while working with global organizations such as the United States-based FirmoGraphs (******) and Grassroots Research® (******). Mr. Khan has also worked as a fixer and translator with foreign media groups including the United States National Public Radio (NPR), the Canadian CBC Television, The Australian Newspaper, Sunday Times, and the Australian Broadcasting Corporation (ABC).
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SNGPL seeks 147% gas price hike, 3rd time in one year
The Sui Northern Gas Pipeline Limited (SNGPL) has submitted a petition to the Oil and Gas Regulatory Authority (Ogra) for a 147% increase in gas prices for FY 2024-25, which would be the third hike within a year. The proposed increase would raise the average gas price to Rs4,446.89 per mmbtu due to a projected revenue shortfall of Rs189.18 billion. Public hearings are being held in Lahore and Peshawar to discuss the matter. The Sui Southern Gas Company (SSGC) has also sought a price increase. The textile industry, represented by the All Pakistan Textile Mills Association (Aptma) and Lahore Chambers, plans to oppose the hike, particularly questioning the high unaccounted for gas (UFG) rates and the rationale behind certain expenses.
SNGPL seeks 147pc gas price hike, 3rd time in one year
The Sui Northern Gas Pipeline Limited (SNGPL) has submitted a petition to the Oil and Gas Regulatory Authority (Ogra) for a 147 percent increase in gas prices for FY 2024-25, marking the third such request within a year. The hike, if approved, is expected to exacerbate inflation and burden the poorer population. SNGPL, serving over 7.22 million consumers, faces a revenue shortfall of Rs189.18 billion. The All Pakistan Textile Mills Association (Aptma) and Lahore Chambers plan to oppose the increase, particularly questioning the SNGPL's high unaccounted for gas (UFG) rates and the rationale behind certain expenses. Ogra conducted hearings in Karachi and Quetta for a similar petition by the Sui Southern Gas Company (SSGC), which seeks a price increase due to a revenue shortfall of Rs79.63 billion.
Another Rs4.66 per unit hike in power bills expected next month
Electricity consumers in Pakistan may face an additional Rs33 billion burden if NEPRA approves a proposed Rs4.66 per unit increase in power prices for January 2024 bills, due to fuel adjustment for November 2023. NEPRA held a public hearing on CPPA's plea, which represented Discos. The hearing addressed concerns about operating power plants on imported fuel and the shutdown of cost-effective plants. A 13% decrease in electricity consumption and reliance on expensive imported LNG fuel in November 2023 has increased financial pressure on consumers. NEPRA is committed to enforcing its decisions and has taken legal actions against Discos for overbilling. Recent loadshedding was attributed to grid station failures, reduced hydel generation, and gas supply issues. The Power Division is working to minimize shortfalls by using furnace oil to compensate for the LNG shortage.
LPG price up by Rs1.57/kg for this month
The caretaker government of Pakistan has increased the price of a domestic 11.8-kilogramme liquefied petroleum gas (LPG) cylinder by Rs18.52 for January 2024, as per a notification from the Oil and Gas Regulatory Authority (Ogra). The LPG price per kilogram has risen from Rs254.86 in December to Rs256.43 in January. The increase is attributed to a 1.6% rise in the Saudi Aramco-CP and a 0.86% decrease in the average dollar exchange rate. The new pricing will affect different cylinder sizes, with the price of a 45.4kg commercial cylinder increasing by Rs71.278. The producer price of LPG, assuming a composition of 40% propane and 60% butane, has been set at Rs177,644.20 per tonne, excluding the petroleum levy and general sales tax (GST). The marketing, distribution, and transportation margins have been set at Rs35,000 per tonne, with an 18% GST applied on these margins.
Weekly inflation surges to 43.25pc y/y as food prices skyrocket
Weekly inflation in Pakistan rose by 0.37 percent, reaching 43.25 percent year-on-year, driven by significant increases in food prices such as onions, chicken, and sugar. The Sensitive Price Indicator (SPI) tracked the prices of 51 essential items, showing varied price changes. The highest inflation was observed among middle-income groups, with gas prices increasing by over 1100 percent for certain consumers. The data highlights the economic strain on different income groups, with notable price hikes in essential commodities over the past year.
Discos seek massive Rs4.66 per unit hike in Jan power bills
Power distribution companies (Discos) in Pakistan, excluding K-Electric, are seeking approval from the National Electric Power Regulatory Authority (Nepra) to increase electricity prices by Rs4.6617 per unit for January 2024. This increase is due to the fuel charges adjustment for November 2023. The Central Power Purchasing Agency (CPPA) has applied on behalf of Discos, and Nepra has scheduled a public hearing on December 27 to review the application. The total electricity generated in November was 7,547 gigawatt-hours, with various sources contributing to the generation mix, including hydel, coal, gas, RLNG, bagasse, wind, solar, nuclear, and imported electricity from Iran.
Weekly inflation stays at six-month high on food, gas prices
Pakistan's weekly inflation rate remained at a six-month high of 43.16 percent for the week ending on December 14, driven by significant price increases in food items and gas. The Sensitive Price Indicator slightly decreased by 0.06 percent week-on-week. The State Bank of Pakistan has kept the interest rate at 22 percent, with a total increase of 15 percentage points over the last two years. Gas prices surged by 1108.6 percent over the year, while prices of sugar, pulses, eggs, and rice also saw sharp increases. The inflation rate varied across different income groups, with the middle quintile experiencing the highest weekly inflation at 46.99 percent. The Pakistan Bureau of Statistics reported changes in prices for various commodities, with some items like sugar and pulses experiencing price hikes, while others like potatoes and tomatoes saw price reductions.
Gas tariff increase fails to cut Pakistan’s Rs2.8 trillion circular debt pile
Pakistan's gas sector circular debt remains at Rs2.8 trillion despite tariff hikes, with no significant reduction expected. The Senate Standing Committee on Petroleum discussed strategies to address the debt and the urea shortfall. Daily gas consumption exceeds production, with fertilizer companies being major consumers. The committee also discussed gas tariff rates, load shedding, and the regularization of contingent employees. The meeting included senators, the Special Secretary for Petroleum Division, the Chairman of OGRA, and other officials.
Senate chief’s brother Raziq removed from Saindak firm MD post
The federal government has removed Mohammad Raziq Sanjrani from his position as Managing Director of Saindak Metals Limited after revelations of his appointment violating established rules. The National Accountability Bureau had previously deemed his 2008 appointment illegal due to lack of qualifications and experience. The decision to rescind his appointment was formalized by the Ministry of Energy following directives from caretaker Prime Minister Anwarul Haq Kakar. The revocation was based on recommendations from various government bodies and highlights the involvement of key political figures in the initial appointment process.
SSGC to halt gas supply to power plants amid severe shortage
Sui Southern Gas Company Ltd. (SSGC) will suspend gas supply to gas-based power plants in Pakistan from December 5, 2023, to February 29, 2024, due to a significant reduction in domestic gas availability and increased demand, particularly in Balochistan. The company has experienced a severe deficit in gas supplies, declining by over 39 percent in the past six years. The suspension is in accordance with the gas sale agreement, which allows for disconnection during high-demand winter months, prioritizing domestic sector supplies as per federal government policy.
PITC, Discos question Nepra report on excessive billing
The Power Information Technology Company (PITC) and power distribution companies (DISCOs) have raised concerns about the accuracy of a recent report by the National Electric Power Regulatory Authority (Nepra) regarding excessive billing during July and August 2023. Nepra's report, released on December 4, 2023, alleged deceptive meter reading and billing practices by DISCOs. PITC and DISCOs argue that Nepra used incorrect data and unfair sampling methods, leading to exaggerated findings. The Ministry of Energy has formed an independent committee to review Nepra's findings before making a final decision.
Government says gas to be provided only for 8 hours in winters
Caretaker Energy Minister Muhammad Ali announced that due to a gas shortage, gas will only be available for 8 hours a day during the winter season in Pakistan. Two LNG cargoes have been arranged for December 2023, with plans for more in January 2024. The government has increased the fixed gas tariff and is trying to align it with the cost of LPG, particularly affecting urban areas. The power sector, tandoors, and the fertiliser sector are insulated from the tariff increase, while commercial tariffs have been equalized. The CNG sector tariff has risen to 80% of petrol prices. The government has also frozen the energy sector's circular debt and stopped new gas connections, signaling a future shift to LPG for households.
No relief for masses as inflation hits 29.6% in Dec 2023
Inflation in Pakistan surged to 29.66% in December 2023, driven by high food and energy costs, impacting lower and middle-income groups. Core inflation reached a 10-month low at 18.2%, potentially prompting the State Bank of Pakistan to consider easing the discount rate. The consumer price index (CPI) increase deviated from the government's forecast, with significant rises in housing, utility, and transport costs. The first half of the fiscal year saw average inflation at 28.8%, exceeding government and SBP targets. Various sectors, including food, transport, and health, experienced notable price increases.
Inflation rises to 29.6pc in December
Pakistan’s inflation rate rose to 29.66 percent in December 2023, driven by elevated food and energy costs, deviating from the government’s forecast. Core inflation excluding food and energy costs reached a ten-month low at 18.2 percent, potentially prompting the State Bank of Pakistan to consider easing the discount rate to stimulate economic growth. Housing and utility costs saw a significant increase, contributing to the overall inflation rise. The wholesale price index and sensitive price indicator also showed notable increases, reflecting broader economic pressures.
Exports surge by 22.21pc to $2.812bn in December
Pakistan's exports reached $2.812 billion in December 2023, marking an 18-month high and a 22.21 percent increase compared to December 2022. The first half of the financial year 2023-24 saw exports rise to $14.981 billion, a 5.17 percent increase from the same period in 2022. Imports decreased by 16.28 percent to $26.129 billion, resulting in a trade deficit reduction of 34.29 percent to $11.148 billion. Federal Minister Dr. Gohar Ejaz highlighted the country's capacity to further increase exports, aiming for $8 billion per month through a new industrial policy under the SIFC framework. The Pakistan Bureau of Statistics reported a significant improvement in the trade deficit and export figures, signaling a positive economic outlook.
Minister warns Discos chairmen, CEOs over power theft
Federal Minister for Power Sardar Awais Ahmad Khan Leghari warned chairmen and CEOs of power distribution companies (Discos) against electricity theft, calling it 'economic terrorism' and detrimental to Pakistan's economy. He announced strict actions against any involved employees and urged the use of technology to combat theft and improve customer service. The minister's directives come as power sector circular debt hits Rs2.4 trillion, with Discos' inefficiencies highlighted in NEPRA's State of Industry Report 2022-23 as a significant contributor to the debt.
Industrial output grows modestly in November, still trails last year
Industrial output in Pakistan rose by 1.59% year-on-year in November 2023, driven by improvements in several sectors, but overall performance remained below the previous fiscal year due to high energy costs. The large-scale manufacturing sector saw a 3.63% month-on-month increase, with notable growth in food, beverages, garments, and pharmaceuticals. However, sectors like automobiles, electrical equipment, and cement experienced declines. Economic experts attribute the challenges to costly bank financing and high energy rates, which have led to reduced operational hours and plant closures.
Chinese giant BYD mulls investment in Pakistan's EV sector
Chinese electric vehicle manufacturer BYD is exploring investment opportunities in Pakistan's EV sector. A delegation visited Pakistan, facilitated by the Board of Investment, to meet with government officials and potential local partners. BYD, a Fortune 500 company and a global leader in EV manufacturing, is recognized for its presence in automobile, rail transit, new energy, and electronics industries. The company is a significant competitor to Tesla and may soon surpass it as the largest EV manufacturer. The Government of Pakistan has expressed its commitment to supporting foreign investors like BYD.
Weekly inflation barely budges, stays above 40pc
The weekly inflation rate in Pakistan showed minimal change, remaining above 40 percent, as per the Pakistan Bureau of Statistics. The Sensitive Price Indicator (SPI) rose 41.13 percent year-on-year for the week ending November 23, slightly down from the previous week's 41.9 percent. The SPI has been in double digits since February 2021, driven by a depreciating rupee, higher commodity prices, and energy tariffs. The latest data indicated mixed trends in food prices, with some items like garlic and onions increasing, while others like tomatoes and cooking oil decreased.
Two export advisory councils set up to boost growth, exports
The Pakistani government has established two Export Advisory Councils (EACs) to address the continuous monthly contraction in exports, particularly in textiles. The councils will provide recommendations to the Ministry of Commerce to boost exports and job creation. The Export Advisory Council for Textiles consists of 16 members, including nine from the private sector, while the non-textile Export Advisory Council includes 14 private sector members. These councils will meet monthly and are chaired by the Minister for Commerce. The country has experienced a decline in goods exports ranging from 3.25 percent to 26.2 percent year-on-year from October 2022 to August 2023, with textile exports falling by 6.3 percent from July to October of FY24.
More misery for masses as short-term inflation surges by 10%
In Islamabad, the Sensitive Price Indicator (SPI) surged by 10% in the week ending November 16, driven by a significant increase in gas tariff and rising food costs. The SPI, which tracks the price movement of kitchen items, stood at 41.9% compared to the same week last year. Major price hikes were observed in gas, tea, masoor pulse, chicken, and other essentials, while prices for items like electricity and tomatoes decreased. The inflation rate varied across income groups, with the lowest earners facing a 35.72% rate and higher earners experiencing a 39.67% rate.
Short-term inflation surges by massive 10pc in a week
Weekly inflation in Pakistan surged by nearly 10 percent in the week ending November 16, driven by a five-fold increase in gas prices and rising food costs. The Sensitive Price Indicator (SPI) showed a 41.9 percent increase compared to the same week last year. The Pakistan Bureau of Statistics reported that inflation has been in double digits for most of the current and last fiscal years, exacerbated by currency devaluation and higher energy tariffs. The SPI inflation for the lowest income group was 35.72 percent, while for the highest income group, it was 39.67 percent. Major price increases were observed in gas, tea, masoor pulse, chicken, garlic, and other essential items.
PRL inks first refinery upgrade deal under new policy
Pakistan Refinery Limited (PRL) has signed an agreement with the Oil and Gas Regulatory Authority (OGRA) to upgrade its facilities and produce Euro-V-compliant fuels under the Brownfield Refinery Policy. This policy aims to modernize existing refineries and reduce oil import burdens. The agreement, finalized after extensive stakeholder consultations, marks the first under this policy and is expected to bring significant positive changes to Pakistan's oil sector. PRL and OGRA officials emphasized the national importance of these upgrades and their commitment to environmentally friendly fuel production.
KUFPEC, OGDCL forge partnership with MoU signing
Kuwait Foreign Petroleum Exploration Company (KUFPEC) and Pakistani Oil and Gas Development Company (OGDCL) have signed a Memorandum of Understanding (MoU) to collaborate on evaluating business opportunities in Pakistan and international upstream projects. The agreement includes joint studies, technical expert exchanges, and knowledge sharing. A high-level KUFPEC delegation visited OGDCL's head office, and both companies committed to forming working groups to implement the MoU's objectives. The collaboration aims to leverage Kuwait's expertise in production optimization and strengthen KUFPEC's presence in Pakistan's Exploration and Production sector.
LSM grows by 1.01 percent in September
The industrial output in Pakistan grew by 1.01 percent year-on-year in September, marking the second consecutive month of growth and indicating signs of economic recovery. The growth was driven by increases in the production of food, beverages, garments, leather products, coke and petroleum products, chemicals, and pharmaceuticals. However, several sectors, including textiles, automobiles, and non-metallic minerals, experienced declines. The large-scale manufacturing sector showed a quarterly growth of 0.68 percent over the same period of the previous fiscal year. The economic downturn in FY23 was linked to expensive bank financing, rupee devaluation, import reductions, high energy costs, and political turmoil.
Quarterly tariff adjustment: Nepra may allow Discos, KE to collect Rs1.25 per unit from power consumers
The National Electric Power Regulatory Authority (Nepra) is considering allowing Power Distribution Companies (DISCOs) and K-Electric to collect an additional Rs1.25 per unit from consumers under the quarterly tariff adjustment for December 2023 to February 2024. This adjustment, discussed during a public hearing, aims to transfer Rs22.92 billion to power consumers, covering capacity charges, variable operation and maintenance costs, and other fees. Despite reductions in inflation and crude oil prices, tariffs will not decrease. The final decision is pending, but if approved, it will apply to all Discos and K-Electric customers, excluding lifeline customers.
UK firm to advise on PIA privatisation
The Privatisation Commission Board has approved Ernst & Young as the financial advisor for the privatisation of Pakistan International Airlines (PIA). The board, chaired by caretaker Minister for Privatisation Fawad Hasan Fawad, selected the British multinational from eight proposals. A negotiating committee will finalize the financial services agreement. This move follows caretaker Prime Minister Anwaarul Haq Kakar's directive to expedite the PIA privatisation, supported by an Rs 8 billion bridge financing package from the Civil Aviation Authority. The board also extended financial services agreements for the House Building Finance Corporation Limited and the First Women Bank Limited, and discussed issues related to the long-pending privatisation of Pak-China Fertiliser Limited.
Exports rise 7.66 percent in November, trade deficit narrows by 31.7 percent
Exports in Pakistan rose by 7.66 percent year-on-year in November to $2.57 billion, marking the third consecutive month of growth. Imports decreased to $4.46 billion, leading to a 31.7 percent reduction in the trade deficit to $1.89 billion. From July to November 2023, exports totaled $12.17 billion, a 1.93 percent increase, while imports fell by 17.3 percent to $21.55 billion, resulting in a 33.6 percent reduction in the trade deficit to $9.378 billion. The trade deficit in services surged by 116.7 percent to $847 million in July-October 2023-24.
SIFC working group seeks single authority for special zones to boost investment
The Special Investment Facilitation Council (SIFC) has proposed the establishment of a single authority to manage various economic, technology, and industrial zones in Pakistan to attract more investment and enhance industrial development. The recommendation was made during the SIFC's working group meeting, chaired by caretaker minister for Privatisation Fawad Hasan Fawad. The group emphasized the need for a streamlined framework and a one-window operation to facilitate investment. A delegation from prominent investment banks and funds met with Fawad to discuss the government's vision for investment and the privatization of State-Owned Enterprises, including Pakistan International Airlines Corporation Limited, Roosevelt Hotel, First Woman Bank Limited, and House Building Finance Company Limited. The representatives expressed optimism about the initiatives and the investment environment in Pakistan.
Food prices fuel weekly inflation to 7-month high
Weekly inflation in Pakistan surged to its highest level in over seven months, driven by rising food prices, a depreciating currency, and increased energy costs. The Sensitive Price Indicator (SPI) rose by 1.36 percent in the week ending January 11, with a year-on-year increase of 44.16 percent. Key contributors to the inflation included significant price hikes in tomatoes, onions, chicken, eggs, and pulses. The Pakistan Bureau of Statistics reported mixed trends in food prices, with some items decreasing while others increased. The inflation rate varied across income groups, with the lowest income group experiencing 36.06 percent inflation and the highest income group facing 42.71 percent.
Afghan Families In Limbo Ahead Of Mass Deportations From Pakistan
Afghans living in Pakistan are rushing to the borders as the Pakistani government enforces a deadline for 1.7 million undocumented individuals to leave the country or face arrest and deportation.
LPG prices cut by 3.8% for November as rupee strengthens
The Pakistani government has reduced LPG prices by 3.8%, or 9.95 rupees per kilogram, for November 2023, following the strengthening of the local currency against the US dollar. The new prices, effective from November 1, reflect a decrease after three consecutive monthly increases. The price reduction is attributed to the decrease in the average dollar exchange rate by 6%, despite a 1.15% increase in Saudi Aramco's Propane and Butane prices. Domestic cylinders will now cost Rs2,962.17, down from Rs3,079.64, and commercial cylinders will see a reduction of Rs451.73. Ogra has set the producer price of LPG at Rs173,069.32 per tonne, with various taxes and margins applied.
Rate cut hopes fizzle out as inflation hits 29.2% in November
Pakistan's inflation rate rose to 29.2% in November 2023, up from 26.9% in October, driven by increased gas tariffs as part of the IMF's bailout conditions. This surge in inflation, particularly in housing and utility costs, has surpassed the government's target and the SBP's projected range for the fiscal year. Food inflation also increased, while some categories like alcoholic beverages and tobacco saw declines. Core inflation, excluding food and energy, reached 18.6% year-on-year. Urban inflation was higher than rural, and the Wholesale Price Index and Sensitive Price Indicator also rose. Despite some price decreases in food and non-food items, overall inflation remains high, with significant year-on-year increases in essential goods and services.
Discos allowed to charge additional Rs0.4/unit in November bills
The National Electric Power Regulatory Authority (NEPRA) has approved an additional charge of Re0.4014 per unit on electricity bills for November 2023, due to a shortfall in payments for power consumed in September. The Central Power Purchasing Agency (CPPA-G) had initially requested a higher tariff increase of Re0.5471 per unit. The additional charges will apply to all consumer categories except electric vehicle charging stations and lifeline consumers. The National Transmission and Despatch Company Limited (NTDCL) also reported provisional Transmission and Transformation losses of 346.717 gigawatt-hours for September 2023.
Inflation hits 29.2% in November, dashes hopes for interest rate cut
Pakistan's inflation rate surged to 29.2% in November 2023, up from 26.9% the previous month, largely due to increased gas tariffs imposed by the IMF for bailout qualification. This rise in inflation has diminished expectations for a rate cut by the State Bank of Pakistan in December. Housing and utilities costs saw a significant increase, contributing to the overall inflation. Food inflation also rose, while some categories like alcoholic beverages and transport expenses saw declines. The core inflation rate and wholesale price index also increased, indicating persistent inflationary pressures.
Nepra to recover Rs3/unit from KE industrial consumers in two months
The National Electric Power Regulatory Authority (Nepra) has revised its decision to recover Rs3 per unit from K-Electric's industrial consumers over a two-month period. This follows the Supreme Court's ruling that the government can withdraw subsidies. The recovery pertains to a relief package approved by the federal government for July-December 2019, which was later challenged legally. Nepra's decision was communicated to the Ministry of Energy and awaits notification as per the Nepra Act.
Senate body wants WB-funded project ‘irregularities’ investigated
The Senate’s Standing Committee on Power convened to address concerns over contract awards for a World Bank-funded transmission line project from Dasu hydropower station to Islamabad. A three-member probe committee, led by the caretaker federal energy minister, was appointed to investigate alleged irregularities. The committee also discussed the impact of high power tariffs on businesses, efforts to restore electricity in Mirani Dam Feeder, and development schemes awarded to Multan Electric Power Company. Key stakeholders include the Ministry of Energy, NESPAK, and Quetta Electric Supply Company.
HEC privatisation completed, IMS Engineering plans to upgrade and expand facility
The government has finalized the privatization of the Heavy Electrical Complex (HEC) by transferring share certificates to IMS Engineering (Pvt) Limited. The Rs1.4 billion transaction includes additional liabilities of Rs752 million to the Bank of Khyber. IMS Engineering plans to upgrade the facility with German-made machinery and aims to boost exports significantly. The privatization is expected to enhance productivity, create jobs, and increase tax revenue and foreign exchange earnings. This marks the first strategic entity-level transaction since 2015, following several unsuccessful attempts to privatize HEC.
Rs301bn over four months takes circular debt to Rs2.61tr
The circular debt in Pakistan's power sector has surged to Rs2.611 trillion by October 2023, driven by inefficiencies in power generation, distribution, and dues collection. Despite government measures like raising electricity prices under IMF pressure, the debt continues to grow, exacerbated by issues with K-Electric, subsidy disputes, and delayed tariff adjustments. The financial burden on consumers remains high, with significant losses and under-recoveries reported by distribution companies.
SNGPL seeks another 137% hike in gas tariff
Sui Northern Gas Pipeline Limited (SNGPL) has requested a 137% increase in gas tariffs to address a projected revenue shortfall for the fiscal year 2023-24. The petition, submitted to the Oil and Gas Regulatory Authority (Ogra), seeks to raise the average prescribed gas price from Rs1,246.49/MMBTu to Rs2,961.98/MMBTu, effective from July 1, 2023. The request includes costs for re-gasified liquefied natural gas (RLNG) and previous years' shortfalls. Ogra has scheduled a public hearing on December 11, 2023, to discuss the petition.
Gas companies report Rs879bn loss: Minister justifies hike in gas prices
State-run natural gas distribution companies in Pakistan have reported significant losses of Rs879 billion for the fiscal year 2023, prompting the government to increase gas tariffs. Caretaker Minister for Energy and Petroleum Muhammad Ali justified the hike as necessary to address economic challenges and align gas prices with procurement costs. The decision aims to mitigate the financial burden caused by declining local gas reserves and the need for costly imported Re-gasified Liquid Natural Gas (RLNG). The minister emphasized that the tariff increase would help contain the circular debt in the energy sector, which has reached Rs2,100 billion. Despite the hike, tariffs for 57% of household connections remain unchanged, with only fixed charges increasing.
SC-backed Nepra decision: KE gets nod to recover Rs3 per unit subsidy from 2019
The National Electric Power Regulatory Authority (Nepra) has permitted K-Electric to recover a Rs3 per unit subsidy previously extended to industrial consumers as part of the federal government’s 2019 industrial relief package. This decision follows the Supreme Court of Pakistan's ruling that the government can withdraw subsidies, allowing K-Electric to reclaim the subsidy from July to December 2019. The federal government initially approved the relief package in January 2019, but subsequent adjustments led to legal challenges, which were ultimately dismissed by the Supreme Court, leading Nepra to amend K-Electric's Schedule of Tariff.
Pakistan’s insurance sector covers less than 1 percent of GDP: regulator
Pakistan's insurance sector is significantly underdeveloped, covering less than one percent of the GDP. The Securities and Exchange Commission of Pakistan (SECP) reported a gross premium of Rs553 billion, with Rs375 billion from life insurance. The SECP emphasized the need for more coverage in micro-insurance, livestock insurance, and disaster and terrorism insurance. Challenges include outdated laws, lack of public awareness, and insufficient regulatory oversight. SECP officials, including Chairman Akif Saeed and Commissioner Amir Khan, outlined objectives for sector growth, including policyholder protection and innovation. The Ministry of Commerce oversees the sector, with pending draft insurance laws since 2014.
SNGPL seeks significant security deposit increase for gas consumers
Sui Northern Gas Company Limited (SNGPL) has proposed a significant increase in security deposits for domestic gas consumers to the Oil and Gas Regulatory Authority (Ogra). The proposal suggests raising the deposit for RLNG consumers to Rs50,000 from Rs15,000 and adjusting natural gas consumers' deposits to three winter months' bills. SNGPL argues this is necessary to protect against consumer defaults and align with current market conditions. The proposal will be reviewed by Ogra on December 11, with stakeholders invited to comment.
NEPRA awards 10-Year Licence to PPIB to run power auctions in Pakistan
The National Power Regulatory Authority (NEPRA) has granted a 10-year licence to the Private Power & Infrastructure Board (PPIB) to act as an independent auction administrator in Pakistan's power sector. This licence will enable PPIB to implement the Competitive Trading Bilateral Contract Market (CTBCM) to procure electricity through transparent and efficient bidding. The initiative aims to help state-run distribution companies meet their capacity obligations. The decision follows public consultations and stakeholder feedback, with PPIB's role being extended to facilitate both private and public sector power projects.
Pakistan to ask US to waive curbs on Iran gas pipeline
Pakistan is set to request a waiver from US sanctions on the Pakistan-Iran gas pipeline project, with Petroleum Minister Musadik Malik emphasizing the need for exemptions to manage the country's energy requirements. The caretaker government had previously delayed this request due to geopolitical factors. Malik highlighted the disparity in gas access, the high cost of RLNG, and the potential for cheaper electricity through local gas. He also mentioned the import of oil from Russia and the need for reforms to address the circular debt in the energy sector.
Govt okays massive hike in gas prices
The caretaker federal cabinet of Pakistan has approved a significant increase in natural gas tariffs by up to 172% for various sectors, effective from November 1, to comply with IMF demands and control the gas sector's circular debt. The new tariffs affect domestic consumers, tandoors, industries, and commercial sectors. The Ministry of Energy issued a notification detailing the new rates, which vary across different consumer categories. The cabinet also approved the Haj Policy-2024, measures to improve Pakistan International Airlines, and granted international flight operations for Fly Jinnah. Additionally, the cabinet reviewed decisions of the Economic Coordination Committee and approved various exemptions and protocols to enhance trade and revenue.
Power consumers may be burdened with Rs22.56bn
State-run power distribution companies in Pakistan have requested approval from the National Electric Power Regulatory Authority (Nepra) to transfer a financial burden of Rs22.56 billion to power consumers. This adjustment covers various costs for the first quarter of the fiscal year 2023-24, including capacity charges, variable operation and maintenance costs, and system charges. A public hearing is scheduled for November 14, and if approved, the charges will apply to all customers except lifeline customers. The petition highlights inefficiencies and losses in the power distribution system, which will be recovered from consumers.
Power consumers to face Rs4.66/unit hike in Jan bills
Consumers in Pakistan are expected to face an increase of Rs4.66 per unit in their January 2024 electricity bills due to fuel adjustments for November. This hike, if approved, will add an additional Rs33 billion burden on consumers. The National Electric Power Regulatory Authority (Nepra) held a public hearing on the petition by the Central Power Purchasing Agency (CPPA) on behalf of Discos. Nepra questioned the use of imported fuel over more cost-effective options and addressed issues related to power plant maintenance and decreased electricity consumption. The CPPA cited various reasons for recent loadshedding, including grid station failures, reduced hydel generation, and limited LNG availability. The Power Division is working to mitigate shortfalls by using furnace oil to generate additional power.
FBR urges fertiliser industry to improve TTS compliance
The Federal Board of Revenue (FBR) has directed the fertilizer industry to enhance compliance with the Track & Trace System (TTS) to safeguard equipment from environmental risks. Despite successful implementation in other sectors, the fertilizer industry has shown varied compliance levels. The Fertilizer Manufacturers of Pakistan Advisory Council (MPAC) raised concerns about the TTS hardware's suitability, citing inefficiencies and potential disruptions to supply chains. The FBR and the TTS licensee consortium, including Authentix Inc., AJCL (Private) Ltd., and MITAS Corporation, remain committed to improving compliance and maximizing tax collection.
Unlocking the Power of Marketing Analytics - How Data, Analytics, and Marketing Combine for Success
Marketing has evolved into a data-driven science, leveraging the synergy of data, analytics, and marketing to empower businesses. Data provides the foundation by offering insights into customer behaviors and market trends, while analytics interprets this data to uncover actionable insights and measure ROI. Marketing then uses these insights to craft personalized campaigns, optimize content delivery, and maximize customer engagement. The integration of these elements into Marketing Analytics enables data-driven decision-making, efficient resource allocation, and a competitive edge in the market.
SSGC to halt gas supply of power plants to meet consumer demand
Sui Southern Gas Company (SSGC) will halt gas supply to power plants for three months starting December 5, 2023, due to a significant shortage and increased winter demand, especially in Balochistan. The federal government's policy prioritizes gas for the domestic sector. SSGC's gas supplies have declined by over 39% in the past six years, raising concerns about the sustainability of domestic gas resources. The suspension follows a contractual clause allowing disconnection during December to February annually.
Navigating the Digital Marketing Maze: The Role of SEM, SMM, Email Marketing, and Advertising
Marketing has transformed in the digital age, with strategies like search engine marketing (SEM), social media marketing (SMM), email marketing, and advertising playing pivotal roles. SEM increases website visibility through paid search results, SMM builds digital communities on social platforms, email marketing fosters personalized relationships, and advertising serves as a versatile tool across various platforms. These components work in synergy to create a powerful digital marketing ensemble that amplifies a brand's impact and drives business success.
Textile industry warns of crisis over power costs, seeks govt help
Pakistan's textile industry, a major contributor to exports and employment, faces a severe crisis due to high power costs and broken government promises. The All Pakistan Textile Mills Association (APTMA) has called for urgent government intervention to restore a competitive energy tariff of 9 cents per kilowatt-hour, as the current rate of 14 cents has led to factory closures and job losses. The crisis has resulted in a significant decline in textile exports and power consumption, posing a serious threat to the economy. The industry's profitability is severely impacted, and the potential exit of firms could lead to a reduction in export earnings, increased external borrowing, and a possible economic recession. The sector's decline also threatens related industries and overall economic stability.
Weekly inflation eases on lower food prices
Weekly inflation in Pakistan eased slightly in the week ending October 26, driven by a decline in the prices of certain food items, according to the Pakistan Bureau of Statistics. The Sensitive Price Indicator (SPI) dropped by 0.33 percent from the previous week, though it remains high year-on-year at 29.65 percent. Prices of chicken, onions, rice, pulses, sugar, and wheat flour decreased, while prices of tomatoes, potatoes, eggs, and milk increased. The inflation rate for the lowest income group stood at 28.66 percent, while for the highest income group, it was 29.61 percent.
Govt to hasten First Women Bank privatisation
The government of Pakistan has decided to resume the privatization process of First Women Bank Limited (FWBL), which had been previously halted due to clerical issues and unresolved impediments. The bank, which has been operating since 1989, has faced multiple privatization attempts in the past, with significant efforts in 1994, 1996, 2018, and 2021. The current caretaker government aims to move the bank swiftly to the pre-qualification stage, marking the fifth attempt to transfer ownership to the private sector. The federal government holds the majority share in the bank, with other stakeholders including Habib Bank, MCB Bank, Allied Bank, National Bank of Pakistan, and UBL.
Govt evolves energy plan amidst depleting local gas reserves
The Pakistani government is formulating a comprehensive energy plan to manage depleting local gas reserves, focusing on LNG and LPG imports, and gas pipeline projects. The plan, presented by Secretary Mohsin Agha to the Senate’s Standing Committee on Petroleum, aims to address the decline in piped gas supplies and enhance LPG storage at Karachi Port. Challenges include controlling LPG prices and limited foreign participation in local oil and gas exploration. The committee discussed the impact of gas supply suspension on Sindh's industrial units and recommended resolving minor disputes to improve LNG import competitiveness.
Nepra hikes tariff by Rs2.75/unit for three months
The National Electric Power Regulatory Authority (Nepra) has approved a tariff increase of Rs2.7492 per unit for power distribution companies and K-Electric, effective for three months starting April 2024. This adjustment, aimed at covering periodic costs, will allow the collection of over Rs85.3 billion from consumers, excluding lifeline users. Including K-Electric, the total collection may exceed Rs90 billion, with additional taxes further increasing the financial burden on consumers. The decision follows a public hearing and will replace existing quarterly adjustments set to expire in March 2024.
Senate body chides ministry for failing to give details of theft in PSM
The Ministry of Industries and Production faced renewed criticism from the Senate Standing Committee on Industry and Production for failing to provide details of stolen items from the non-functional Pakistan Steel Mill (PSM). The thefts, amounting to billions of rupees, have hindered PSM's operations and increased financial burdens. The committee, chaired by Senator Khalida Ateeb, directed PSM officials to present the missing information in the next meeting. Additionally, the committee discussed the role and contributions of the Small and Medium Development Authority (SMEDA), noting the significant impact of SMEs on the country's GDP and exports.
Exports rise by double digits in Oct, trade deficit narrows
Exports in Pakistan grew by 13.55 percent year-on-year in October, marking the second consecutive month of expansion after a year of contraction. The country exported goods worth $2.71 billion in October, up from $2.39 billion the previous year. Imports increased to $4.81 billion, resulting in a trade deficit that narrowed by 4.5 percent to $2.1 billion. From July to October 2023/24, total exports increased slightly to $9.62 billion, while imports fell by 18.5 percent to $17 billion, reducing the trade deficit by 34.7 percent to $7.4 billion. The trade deficit in services widened by 121 percent to $688 million in July-September 2023-24 due to higher demand for foreign services.
State-run Discos seek $9.9bn in power rate adjustments for 2024-25
Pakistan’s ten state-run power distribution companies have requested approval from the National Electric Power Regulatory Authority (NEPRA) for a $9.9 billion adjustment in power rates for the fiscal year 2024-25. The requests include comprehensive calculations considering inflation, exchange rates, fuel prices, and operation and maintenance costs, along with prior year adjustments. NEPRA will hold public hearings on these petitions in April 2024. Detailed financial requirements for each company, including Lahore Electric Supply Company, Faisalabad Electric Supply Company, and Islamabad Electric Supply Company, among others, have been outlined.
Quarterly adjustment: Nepra hikes power tariff for Karachi users by Rs2.87/unit
The National Electric Power Regulatory Authority (NEPRA) has approved a power tariff increase of Rs2.868 per unit for K-Electric consumers in Karachi, effective from the January-March 2023 quarter. This decision follows a public hearing and a six-month review period. The adjustment includes various cost components such as energy purchases, capacity charges, and operation and maintenance costs. Additionally, the regulator has approved adjustments for previous periods and specific costs like insurance premiums. The federal government is expected to issue an official notification to implement the new rates.
RLNG tariff raised by 3.8pc for October
The government has announced a 3.8% increase in RLNG prices for October 2023, affecting both Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC). The Oil and Gas Regulatory Authority (OGRA) attributes the price hike to rising RLNG Brent prices in the international market. The new prices are $13.3332 per MMBTU for SNGPL consumers and $13.8716 per MMBTU for SSGC consumers. The RLNG price fluctuations have been notable throughout the year, with multiple reductions and increases. The revised prices include various charges and are based on the import of LNG cargoes by Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL).
LPG prices go up by Rs45.18 per cylinder for December
The caretaker government of Pakistan has increased the prices of liquefied petroleum gas (LPG) by Rs3.83 per kilogram for December, citing a rise in the average dollar exchange rate. The Oil and Gas Regulatory Authority (OGRA) announced that the price per kilogram has risen to Rs254.86 from Rs251.03 in November. This change affects both domestic and commercial consumers, with the price of an 11.8 kg domestic cylinder increasing by Rs45.18. The price adjustments are linked to the Saudi Aramco-CP and the US dollar exchange rate. The article details the breakdown of the new pricing structure, including taxes and margins.
Govt hikes RLNG tariff for Sui gas companies
The government has approved a 3.8% increase in RLNG prices for Sui Northern Gas Pipelines Limited and Sui Southern Gas Company for October 2023, attributed to rising RLNG Brent prices. The Oil and Gas Regulatory Authority announced the new prices, effective from October 1, 2023, with SNGPL consumers now paying $13.3332 per MMBTU and SSGC consumers $13.8716 per MMBTU. This follows a year of fluctuating RLNG prices, with multiple reductions and increases. Pakistan relies on LNG imports for nearly one-third of its energy needs, and the recent price adjustments reflect changes in international LNG market conditions.
Nepra’s public hearing: KE seeks licence renewal amid stakeholders’ opposition
K-Electric (KE) sought the renewal of its power distribution and supplier license from the National Electric Power Regulatory Authority (Nepra) amid significant opposition from various stakeholders. Nepra had provisionally renewed KE’s license for six months with a condition against exclusivity. Stakeholders, including business associations and civic groups, criticized KE for inefficiency and unfulfilled commitments, advocating for multiple distribution companies in Karachi. KE defended its performance, highlighting substantial investments and improvements in power supply and efficiency. The public hearing, led by Nepra Chairman Waseem Mukhtar, addressed various issues including KE’s eligibility, performance, and future plans.
SIFC advises review, extension of import quotas for auto manufacturers
The Special Investment Facilitation Council (SIFC) has advised the Ministry of Industries and Production to review and extend the import quotas for auto manufacturers, including three Japanese brands and eight new entrants, for up to 90 days. The ministry is instructed to ensure compliance with localization and export obligations during this period. The revalidation of import quotas, which expired on September 30, 2023, is expected soon. The SIFC's recent meeting reviewed progress on various policy initiatives, emphasizing the need for localization and export targets under the auto policy 2021-2026. Companies failing to meet these targets may face penalties.
PC signs deal with Ernst & Young to advise on PIA privatisation
The Privatisation Commission has signed an agreement with Ernst & Young to provide financial advisory services for the privatisation of Pakistan International Airlines Corporation (PIACL). The agreement includes restructuring, legal, technical, and financial due diligence, and fair valuation of PIACL. Minister for Privatisation Fawad Hasan Fawad expressed confidence in the successful execution of the transaction. The Economic Coordination Committee recently approved an Rs8 billion bridge financing package for PIA. Additionally, the Privatisation Commission is reviewing the sale process of government properties, with a focus on addressing previous shortcomings.
Gas crisis likely to aggravate amid delay in ECC’s gas pricing reforms
The delay in the Economic Coordination Committee's gas pricing reforms, aimed at standardizing tariffs for all fertilizer manufacturers, is likely to worsen Pakistan's gas crisis and threaten the sector's sustainability. The gas sector's circular debt has risen to Rs2.9 trillion. The government's reforms intended to unify feed gas prices for the fertilizer industry at Rs1,260/MMBTU to stabilize urea prices and ensure a surplus in the Gas Development Surcharge. However, the formation of an inter-ministerial committee to recommend gas allocation and pricing has caused a delay. Over the past five years, feed gas tariffs have increased by over 235%, and disparities in input costs have led to market distortions. Unifying gas rates could generate a GDS pool of approximately Rs90 billion for gas-producing provinces and serve as a targeted subsidy for small farmers.
Pakistan signs agreements to establish KSA labour training centres
Pakistan has signed Letters of Intent with Saudi conglomerates FNRCO and Maharah to establish labour training centres aimed at enhancing employment opportunities for Pakistanis in Saudi Arabia. The agreements, signed by Jawad Sohrab Malik, focus on skill development to meet the demands of the Saudi labour market. FNRCO and Maharah are highlighted as leading companies in their respective fields, with the Government of Pakistan taking proactive steps to foster international collaboration and employment.
Nepra, intervenors surprised Discos’ faulty plan ignores 8,000MW cost-effective renewables
The National Electric Power Regulatory Authority (Nepra) and intervenors criticized the flawed five-year power acquisition plan by state-owned Discos, which ignored 8,000MW of cost-effective renewable projects. The plan lacked an assessment of its impact on consumer tariffs and failed to address critical issues like electricity evacuation and system constraints. Nepra emphasized the need for system reliability and questioned the financial implications for consumers. Senator Nauman Wazir raised additional concerns about the plan's data and its alignment with growth and off-grid solarization.
Delay in ECC’s gas pricing reforms to amplify gas crisis
The Economic Coordination Committee (ECC) has delayed the implementation of gas pricing reforms aimed at standardizing tariffs for fertilizer manufacturers, exacerbating Pakistan's gas crisis and threatening the sector's sustainability. The gas sector's circular debt has surged to Rs2.9 trillion, with disparities in input costs causing market distortions. The Ministry of Energy's proposed reforms aimed to unify feed gas prices, stabilize urea prices, and optimize gas reserves. However, the ECC's decision to form an inter-ministerial committee has caused a delay, with the next meeting scheduled after Finance Minister Dr Shamshad Akhtar's return from China. Experts suggest that unifying gas prices could generate significant revenue for gas-producing provinces and stabilize the market.
UK’s EY finalised as financial adviser for PIA privatisation
The Pakistani government has approved the UK's Ernst & Young (EY) as the financial adviser for the privatisation of Pakistan International Airlines (PIA). The Privatisation Commission Board, chaired by caretaker Minister Fawad Hasan Fawad, selected EY from eight proposals. A negotiating committee will finalize the financial services agreement. This move aligns with caretaker Prime Minister Anwaar-ul-Haq Kakar's directive to expedite PIA's privatisation. The Economic Coordination Committee (ECC) has also approved a Rs8 billion bridge financing package for PIA. The board extended financial services agreements for the House Building Finance Corporation Limited and the First Women Bank Limited and discussed the long-pending privatisation of Pak-China Fertiliser Limited. The privatisation is part of a fiscal discipline plan under an IMF bailout, following PIA's operational crisis and suspension of flights to Europe and the UK since 2020.
Rs4.66/unit hike in Jan 2024 power bills sought
Power Distribution Companies (Discos) in Pakistan, excluding K-Electric, are seeking approval from the National Electric Power Regulatory Authority (Nepra) to impose an additional Rs4.6617 per kilowatt-hour (kWh) on consumers in January 2024 due to fuel charges adjustment (FCA) for November 2023. The Central Power Purchasing Agency (CPPA) has applied for this increase, with a public hearing scheduled for December 27. The total electricity generated in November was 7,547 gigawatt-hours (GWh) at a cost of Rs54.113 billion, with various sources contributing to the generation mix, including hydel, coal, gas, RLNG, bagasse, wind, solar, nuclear, and imported power from Iran.
Boost Your Fiverr SEO: A Step-by-Step Guide to Skyrocket Your Gig’s Visibility
The article offers a detailed guide on improving Fiverr SEO to increase gig visibility. It covers keyword research, optimizing gig titles and descriptions, using tags, uploading quality visuals, competitive pricing, delivering excellent customer service, promoting gigs externally, encouraging reviews, maintaining consistency, and analyzing performance for adjustments. The author shares a personal success story, demonstrating the guide's effectiveness in increasing gig impressions and clicks, and invites readers to visit their Fiverr profile.
Chinese EV giant BYD in talks with Pakistan over investment opportunities
Chinese electric vehicle manufacturer BYD Co Ltd is exploring investment opportunities in Pakistan's emerging EV sector. During a visit facilitated by Pakistan's Board of Investment, BYD's delegation met with local partners and government officials, including Secretary Sohail Rajput and Caretaker Minister for Commerce & Industries Dr. Gohar Ejaz. BYD, a global leader in EV manufacturing, expressed interest in Pakistan, highlighting the government's commitment to facilitating foreign investment. The company is poised to expand its operations and compete with Tesla in the global EV market.
Govt puts sugar exports on hold to avert domestic shortages
The caretaker government of Pakistan has decided to halt sugar exports to prevent domestic shortages and price hikes. The Sugar Advisory Board, chaired by Commerce Minister Gohar Ejaz, rejected a request from sugar millers to export 0.5 million tons of sugar before the new crushing season. The government aims to assess full production and consumption before allowing any exports. Last year's export led to a significant price surge, prompting the current ban. The government plans to implement a track and trace system to monitor sugar production and consumption. Reports indicate a potential lower sugarcane yield due to adverse weather and pest attacks. The 2020 Sugar Inquiry Committee report highlighted issues of price-fixing, fake exports, and money laundering, urging the need for transparency and accountability in the sugar industry.
Amid blackouts: Nepra flags NTDC’s ‘unrealistic’ investment plan
The National Electric Power Regulatory Authority (Nepra) has criticized the National Transmission and Despatch Company’s (NTDC) three-year investment plan as unrealistic, particularly in addressing system constraints causing blackouts. The plan, costing Rs510 billion, lacks sufficient investment in the Southern region, which faces significant transmission issues. Nepra emphasized the need for strategic investments and consultation with provincial governments. The NTDC's plan includes major projects across various provinces but faces challenges such as cost overruns, legal issues, and currency devaluation, complicating infrastructure development in a volatile economic environment.
World Bank to share draft on Pakistan’s power sector privatisation
The World Bank is set to provide Pakistan with a comprehensive privatisation template for its Power Distribution Companies (Discos) within a week, aiming to expedite the privatisation process and support ongoing power sector reforms. The initiative, discussed in a meeting between World Bank officials and Pakistan's caretaker Federal Minister of Privatisation, Fawad Hasan Fawad, focuses on alleviating the financial burden on the government through private-sector investments. The privatisation strategy may involve an initial concessional model of management control followed by divestment. The World Bank's team will collaborate with industry experts to refine the template, ensuring it meets Pakistan's specific energy needs and contributes to long-term sustainability.
WB set to provide privatisation template to Islamabad within a week
The World Bank has pledged to support Pakistan's power sector reform by providing a comprehensive privatization template for Power Distribution Companies (Discos) within a week. In a meeting with Caretaker Federal Minister of Privatisation, Fawad Hasan Fawad, the World Bank emphasized the importance of a well-structured transaction template. The government aims to support struggling Discos and reduce financial burdens through private-sector investments, with a two-step strategy involving initial concessional management control followed by divestment. The World Bank will collaborate with industry experts to refine the template, ensuring it meets Pakistan's energy sector needs and promotes long-term sustainability.
Power theft: Sahiwal leads with 99% recovery in Punjab
Sahiwal has achieved a 99 percent utility charge recovery rate, standing out in Punjab, where four districts have been identified with the highest power theft and low recovery rates. Kasur, Rajanpur, Okara, and Rahim Yar Khan have non-recovery rates ranging from 12 to 16 percent. The Power Division, with data from fiscal year 2022-23, shows that Lahore had the highest collections. The federal government's campaign against power theft has led to Rs198.4 billion recovered, major defaulters imprisoned, and a reshaping of public attitudes towards electricity usage. The CEO of PESCO was dismissed, and Lesco had the highest number of FIRs and arrests, leading in recovery figures.
Nepra grants 20-year supplier licences to seven state-run power utility companies
The National Electric Power Regulatory Authority (Nepra) has issued 20-year supplier licences to seven state-run power distribution companies, allowing them to act as suppliers of last resort. The licences, valid from April 27, 2023, to April 26, 2043, were granted to avoid a legal vacuum after the expiry of the five-year deemed supplier status of existing distribution licensees. The companies will now handle power planning, demand forecasting, procurement, and supply to consumers, including billing and recovery. Nepra may also grant licences to other entities to act as competitive suppliers in the service territories of these distribution companies.
Rs18.4bn recovered in power theft crackdown
The Pakistani government's anti-power theft campaign, initiated on September 7, has led to the recovery of Rs18.4 billion. Federal Secretary for Power, Rashid Mahmood Langrial, emphasized the campaign's goal to deter theft and encourage timely bill payments. Major defaulters have been jailed, and the CEO of PESCO was dismissed for poor performance. Across 10 state-run power companies, 28,096 FIRs were filed and 13,778 suspects arrested. LESCO recorded the most FIRs, while the highest number of arrests were in MEPCO's jurisdiction. Recoveries were highest from LESCO, followed by HESCO and PESCO.
PSM sell-off to be put on hold over waning Chinese interest
The government has decided to halt the privatization of Pakistan Steel Mills (PSM) due to declining interest from Chinese companies, influenced by global steel demand. The Senate Standing Committee on Industries and Production was informed that only one Chinese company remained interested, raising transparency concerns. The PC Board decided to stop the privatization process, pending cabinet approval. Significant investment is needed to restore PSM's production capacity, and the Ministry of Industries and Production will present future plans. The PSM has faced financial losses and operational challenges, including theft and a shutdown since June 2015. The cabinet is expected to approve the transfer of PSM to the Ministry, which will begin hiring a CEO and seek solutions for its revival.
Nepra okays Rs1.7/unit hike in K-Electric bills
K-Electric consumers will face a Rs1.7178 per unit increase in electricity bills over the next three months due to two positive Quarterly Tariff Adjustments (QTAs) for the fiscal year 2022-23. NEPRA approved the federal government's motion, directing K-Electric to recoup the additional amount in the billing cycles of January-February and March 2024. The Ministry of Energy applied for the transfer of these adjustments, which were finalized and recovered from XWDISCOs consumers. The Cabinet’s Economic Coordination Committee sanctioned the application of the third quarter tariff adjustment for K-Electric consumers.
Govt attributes rising electricity cost to growing solar energy usage
The government attributes rising electricity costs in Pakistan to the increasing adoption of solar energy, leading to a significant drop in grid-based power demand. During a public hearing by Nepra, NTDC officials highlighted the surge in solar energy usage and its impact on electricity prices. Nepra expressed concerns over the declining use of local coal and the rising import bills, urging a restructuring of the energy sector. The Power Division noted the influence of foreign exchange rates on electricity costs and reported significant recoveries from a crackdown on electricity theft.
Discos seek Nepra nod for Rs3.5/unit additional charges in December bills
Ex-Wapda distribution companies have requested Nepra's approval to impose an additional Rs3.5339 per unit charge on consumers in December, mainly to recover previous adjustments of Rs28.325 billion. The cost of local coal generation increased by 59 percent in October 2023, while imported coal costs decreased by 15.96 percent. Power generation from coal decreased significantly, and less electricity was produced from renewable sources compared to the previous year. The CPPA reported a total generation of 9,572GWh with a cost of Rs79.07 billion, leading to a proposed transfer of additional costs to consumers.
Inflation at its lowest levels since December but still higher than government target
Pakistan's inflation rate decreased to 26.9% in October 2023, the lowest since December of the previous year, yet still above the government's target of 21% for the fiscal year. The average inflation for the first four months of FY24 was 28.5%. Rural areas experienced higher inflation rates than urban centers. Key contributors to the inflation rate include a drop in food inflation and changes in prices across various categories such as alcoholic beverages, tobacco, recreation, culture, and housing utilities.
Consumers brace for surge in tariff as Discos pursue Rs967bn revenue requirement
Power consumers in Pakistan are expected to face a significant increase in electricity tariffs as six former Wapda power distribution companies (Discos) seek Rs967 billion in revenue requirements for the fiscal year 2024-25. The companies have submitted requests to Nepra for annual indexation and adjustments under the Multi-Year Tariff regime. Nepra will conduct a public hearing on April 2 to deliberate on the matter. The revenue requirements include allocations for salaries, post-retirement benefits, gross and net margins, and prior-year adjustments.
Govt raises gas prices for fertiliser plants to unify rates
The government has increased gas sale prices for three fertilizer plants using gas from Mari Petroleum Company Limited to unify feed gas prices with industrial rates. The Oil and Gas Regulatory Authority notified Engro Fertilizer, Fauji Fertilizer, and Fatima Fertilizer of the new rates effective from October 1, 2023. The move aims to address concerns about subsidies not being passed on to farmers, although it may lead to further urea price hikes. The unification is expected to save over Rs85 billion, with an estimated annual net positive differential margin of over Rs16 billion for FY 2023-24. The decision follows a December agreement between Mari Petroleum and the three fertilizer firms to sustain gas production at Mari's Habib Rahi Limestone field.
Govt increases gas tariff for 3 fertiliser plants to unify rates
The government has increased gas sale prices for three fertiliser plants using gas from Mari Petroleum Company Limited to unify feed gas prices with industrial rates. The Oil and Gas Regulatory Authority notified Engro Fertiliser, Fauji Fertiliser, and Fatima Fertiliser of the new rates effective from October 1, 2023. The unification is expected to save over Rs85 billion, though the allocation of these funds to small farmers remains unclear. The revision in gas sale prices is projected to generate an annual net positive differential margin of over Rs16 billion for the fertiliser sector in FY 2023-24. Mari Petroleum Company had previously inked a deal with the three fertiliser firms to sustain gas production and enhance infrastructure.
Nepra exposes bogus billing by KE, Discos
The National Electric Power Regulatory Authority (Nepra) has uncovered a widespread trend of deceptive meter reading and billing practices by DISCOS, including K-Electric, during July-August 2023, affecting millions of consumers. An inquiry following numerous complaints revealed discrepancies in meter readings, overbilling, and violations of the Consumer Service Manual (CSM) and approved tariff terms. Nepra recommended legal action against the companies, prompt replacement of defective meters, and corrections to billing discrepancies, particularly for protected/lifeline consumers. The inquiry also suggested that DISCOS' revenue recovery is being adversely impacted by these practices, leading to increased load shedding and operational inefficiencies.
Nepra okays Rs1.53/unit surcharge in KE bills for 12 months
The National Electric Power Regulatory Authority (NEPRA) has approved an additional surcharge of Rs1.52 per unit on K-Electric bills to collect Rs24.5 billion from Karachi consumers over 12 months, starting December 2023. This decision follows a federal government motion to recover funds for a three-year-old collection. A public hearing on August 15, 2023, addressed the surcharge, which aims to settle outstanding amounts to power producers and Power Holding Limited. NEPRA's note criticizes the reliance on surcharges, pointing out the financial strain on consumers and the adverse effects on the economy. It also highlights KE's delayed transition to renewable energy, resulting in higher tariffs and subsidy claims.
Pakistan assures Turkmenistan of support for TAPI pipeline
The article discusses the commitment of Pakistan to support the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline and an offshore gas pipeline involving Russian energy company Gazprom, despite tensions with India over Kashmir. The TAPI pipeline, also known as the 'peace pipeline', is expected to start construction in Pakistan in early 2020 and will supply natural gas from Turkmenistan to Afghanistan, Pakistan, and India. The offshore pipeline will transport gas from Gazprom's sources in the Middle East to Pakistan, India, Bangladesh, and China. The article also mentions the North-South Pipeline project and the development of Special Economic Zones (SEZs) under the China-Pakistan Economic Corridor (CPEC), which will benefit from these energy projects. The Asian Development Bank (ADB) is involved in facilitating the TAPI project and providing technical assistance for underground gas storages in Pakistan.
Gas to get costlier, available for only 8 hours in winter
Caretaker Energy Minister Muhammad Ali announced that during winter, gas in Pakistan will be more expensive and available for only 8 hours a day due to shortages. Two LNG cargoes have been arranged for December 2023 and January 2024 to minimize the crisis. The government is adjusting tariffs to bring gas prices closer to LPG costs and has increased the fixed price for low-income users. Tariffs for the power sector and tandoors remain unchanged, while commercial and industrial sectors see tariff equalization and increases. The CNG sector tariff has been raised to 80% of petrol prices. The caretaker government has frozen the energy sector's circular debt, which stands at Rs4.5 trillion, and plans to control power sector losses funded through the federal budget. The Sui companies are facing Rs400 billion in annual losses.
SPI shows relief in kitchen costs
The weekly Sensitive Price Indicator (SPI) for essential items in Pakistan showed a 1.13 percent decrease for the week ending March 21, with notable drops in prices of tomatoes, potatoes, and onions. The SPI inflation rate surged 29.06 percent year-on-year, with nine items increasing in price, 17 items decreasing, and 23 items remaining stable. The lowest income group saw a weekly fall of 1.83 percent, while the highest income group recorded a fall of 0.91 percent. Significant yearly price increases were observed in gas charges, chili powder, and men's footwear, while decreases were noted in cooking oil, vegetable ghee, and diesel.
Weekly inflation escalates to 7-month high over rising fuel prices
Weekly inflation in Pakistan surged to its highest level in over seven months, driven by rising food prices, a depreciating currency, and increasing energy costs. The Sensitive Price Indicator (SPI) rose by 1.36% in the week ending January 11, with a year-on-year increase of 44.16%. Food items such as tomatoes, onions, chicken, eggs, and pulses were the main contributors to the inflation. The Pakistan Bureau of Statistics reported mixed trends in food prices, with some items experiencing reductions while others saw increases. The inflation rate for the lowest income group stood at 36.06%, while for the highest income group, it was 42.71%.
Weekly inflation hits six-month high on food, fuel prices
Pakistan's weekly inflation rate reached a six-month high of 42.68 percent in the week ending December 7, primarily due to rising food and fuel prices. The Sensitive Price Indicator (SPI) showed an increase from the previous week's 41.05 percent, with significant price hikes in onions, eggs, electricity charges, moong pulse, and sugar. Conversely, prices of tomatoes, potatoes, chicken farm, diesel, rice basmati broken, vegetable ghee, cooking oil, and wheat flour decreased. The inflation has been persistent since February 2021, influenced by a depreciating rupee, high commodity prices, and increased energy tariffs. The SPI varied for different income groups, with the lowest earners facing 34.79 percent inflation and the highest earners experiencing 41.11 percent. The weekly bulletin indicated that out of 51 monitored items, prices of 15 increased, 14 decreased, and 22 remained unchanged.
March 2022 Water and Wastewater Market Recap
The article provides a recap of significant events in the water industry for March 2022. It discusses the Environmental Protection Agency's (EPA) final strategic plan for 2022-2026, which includes goals for addressing climate change, public health, and environmental justice. The EPA's budget request for fiscal year 2023 is also mentioned, with a focus on investments in water and wastewater infrastructure. Additionally, the EPA's decision not to regulate perchlorate in drinking water is covered. The article also highlights proposed pollution standards for Washington waters and details capital improvement programs (CIPs) for the City of Arlington and the City of San Diego, noting changes in their planned capital spending. Lastly, it mentions mergers and acquisitions in the Power Generation and Supply Industry and provides a brief note on upcoming meetings and conferences.
Australia's cricket team is in Pakistan for the first time in 24 years. Here's how local authorities plan to keep them safe
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