Daily News Pakistan

National Electric Power Regulatory Authority has approved a blueprint to introduce competition in the power market which is likely to distribute energy on competitive price. NEPRA has given go-ahead to Competitive Trading Bilateral Contracts Market (CTBCM) which according to the regulatory body, is the development of the wholesale competitive electricity market. According to the details, such a development will bring down power prices as it will quash the monopoly and let power producers attract consumers by offering minimum possible rates. The CTBCM is likely be materialized by April 2022 which will ensure transparency in business, growth in power generation and regulations in distribution, the press statement of the electric power regulatory body said. NEPRA said that industries would be the biggest beneficiaries of CTBCM alongside other consumers, as the competitive wholesale market in place, they will make for crucible for the retail power sector as well. NEPRA will monitor ...

Prime Minister Imran Khan on Tuesday announced a package under which small and medium enterprises as well as the industrial sector in general will be able to benefit from reduced energy costs. The prime minister said that starting November 1, the additional electricity used by SMEs up to June 30, 2021, will be sold at 50% lower the cost. "So whatever amount of electricity they use in addition to the level that they used last November, it will cost [half] of what it did previously," he explained. "For example electricity that cost Rs16 per unit will now cost Rs8." He said that these rates will then be revised beyond the aforementioned date. The prime minister also said that industries in general, even the large scale ones, will pay reduced electricity costs at all times, and the concept of "off-peak hours" will be redundant. "It will be as if its all off-peak hours." He said that after the coronavirus lockdown period, record-high cement sal...

Pakistan’s pharmaceutical exports rose by 22.6 per cent in the first quarter of the current fiscal year, Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood said on Monday. He tweeted: “Alhamdolillah, I am glad to share that our Pharmaceutical exports have gotten off to a good start this year. In value terms, our exports have grown by 22.6% in the first quarter (Q1) to USD 68.1 million as compared to USD 55.6 million in the corresponding period last year.” All this has been due to the hard work our Pharmaceutical exporters and renewed focus on exports. I take this opportunity to express my gratitude to Dr. Faisal Sultan @fslsltn and his team for their valuable support to the Pharma Industrial Sector. 2/2 — Abdul Razak Dawood (@razak_dawood) November 2, 2020 “All this has been due to the hard work our Pharmaceutical exporters and renewed focus on exports,” he said, expressing gratitude to Special Assistant to the Prime Minister (SPAM) on National Health S...

Fuel prices for November have been announced by the Ministry of Energy and Minerals Oman on Saturday, according to Times of Oman. An official from the Ministry of Energy and Minerals confirmed to Times of Oman that the fuel prices for November 2020 as below: M95 at 194 baisa per litre, the price of M91 has been fixed at 183 baisa per litre while the new rate of Diesel will be 209 baisa per litre It may be noted that the fuel prices in October were: M95 at 194 baisa per litre, M91 at 183 baisa per litre and the Diesel at 209 baisa per litre. Oil posted a double-digit weekly fall on continued concern over the economic impact of rising global coronavirus infections and ahead of Tuesday’s US presidential election. US crude fell 1.38% to $35.67 per barrel and Brent was at $37.45, down 0.53% on the day. Both fell over 10% this week alone. The oil weakness led to a sell-off of some commodity-linked currencies, including the Russian rouble.a

The Oil and Gas Regulatory Authority (OGRA) on Saturday recommended up to Rs2 decrease in prices of petroleum products for the month of November. The authority forwarded a summary in this regard to the Ministry of Finance for approval. According to the details disclosed by the summary, the OGRA has recommended a Rs1.50 cut in the per litre price of petrol and Rs2 in the price of high-speed diesel (HSD). The finance ministry will announce new fuel prices for November after Prime Minister Imran Khan’s approval. Authorities said the government may keep the prices of petroleum products unchanged by increasing petroleum levy. On September 30, the government had cut the price of high-speed diesel by Rs2.40 per litre and kept that of petrol and other petroleum products unchanged for a fortnight with effect from October 1. Later on October 15, the government decided to keep fuel prices unchanged for the rest of the month.

The government on Thursday approved a fertiliser subsidy of Rs5.4 billion for farmers, two days after a ruckus in the federal cabinet over increasing inflation and the lack of a coordinated response to tackle it. The Economic Coordination Committee (ECC) of the cabinet approved a subsidy of Rs1,000 per 50kg bag of di-ammonium phosphate (DAP) fertiliser, according to a statement issued by the Ministry of Finance. The Rs5.4 billion subsidy has been worked out on the basis of 30% outreach to the farmers and the federal government will bear 70% of the cost, which comes to Rs5.4 billion. The remaining 30% cost will be borne by the provincial governments, according to the decision. The Rs5.4 billion will be spent out of the Rs1.2 trillion prime minister’s package to mitigate the impact of coronavirus. Out of the Rs1.2 trillion fiscal stimulus package, Rs50 billion had been earmarked for the agriculture sector. But the government could not utilise the Rs50 billion and so far only Rs10 b...

The chief executive officer (CEO) of Pakistan International Airlines (PIA), Arshad Malik, has paid a one-day visit to Turkey for discussing the alternative plan for flight restoration to European countries. During his visit, Arshad Malik held meetings with the chief executive officer (CEO) and chairman of the Turkish Airlines. The PIA and Turkish Airlines have agreed to extend codeshare agreement for the restoration of the national carrier’s flights to Europe. The high-ups of Turkish Airlines requested the PIA CEO for collaboration in cargo services. Malik and Turkish officials also discussed plans for initiating flight operations to Istanbul and other administrative matters in the meetings. Upon the arrival of Arshad Malik, he was warmly welcomed by the Turkish authorities by the digital screens of the Istanbul Airport. In July, Turkish Airlines had okayed for code-sharing agreement with the national carrier, Pakistan International Airlines (PIA). Under the new agreement, the pa...

The European Union has allocated Euro 1.15 million for Pakistan to cope with the damage caused by the devastating monsoon rains and floods across the country during August and September. The fund was part of a multi-donor response that would support over 420,000 people and help address the most pressing needs of around 75,000 people in the hardest-hit provinces of the country, Bernard Jaspers-Faijer, head of EU Civil Protection and Humanitarian Aid Operations Islamabad, said while talking to the state-owned news agency. He said, “We stand by the people of Pakistan, many of whom have suffered tremendous losses in the wake of the floods.” Replying to a question, he said, “This contribution from the EU will enable our partners on the ground to scale up their operations and deliver vital assistance to those most in need, helping them to get back on their feet at the earliest possible.” Last month, the government of UK had pledged to provide life-saving clean water, sanitation and she...

Minister for Industries and Production Hammad Azhar tweeted on Monday that a rally in shares on the stock market, the appreciation of the rupee, and strong growth in industrial sectors point towards a positive economic sentiment in the country. He said tax revenues are also rising and the country’s current account is also in surplus. In a tweet on October 21, Prime Minister Imran Khan had said: “We are headed in the right direction finally.” Rally in the stock market, appreciation of PKR in currency markets, strong growth in industrial sectors like Cement, Automobiles, Construction, Fertiliser, Textiles etc point towards a positive econ sentiment in the country. Tax revenues also rising & Current Account in surplus. — Hammad Azhar (@Hammad_Azhar) October 26, 2020 He said the country’s current account balance posted a surplus of $73 million during September, bringing surplus for the first quarter of the current fiscal year to $792 million as compared to $1,492 million defici...

The prices of Liquefied Petroleum Gas (LPG) has been increased by Rs10 to Rs130 per kilogram in the domestic market. Talking to journalists, LPG Distributors Association’s Irafan Khokhar attributed the local price hike to $60 per ton rise in the international market. He maintained that the price of an 11.8 kg domestic cylinder has been increased by Rs 120 while the rate of the commercial cylinder has been increased by Rs 455. Earlier on September 30, the Oil and Gas Regulatory Authority (OGRA) had increased the price of liquefied petroleum gas (LPG) by Rs3 per kilogram to Rs113 for the month of October. According to a notification issued by OGRA, the price of an 11.8 kg domestic cylinder had been increased by Rs 34 while the rate of commercial cylinder has been increased by Rs130. The new prices would come into effect from 1st of October.

Millers on Thursday reduced prices of various varieties of flour by Rs7 per kg prior to release of Sindh government’s wheat to millers followed by drop in price of imported and locally-produced wheat. Pakistan Flour Mills Association Sindh Zone Chairman Chaudhry Mohammad Yousuf said the price of flour no. 2.5 has been slashed to Rs52 from Rs59 per kg followed by drop of Rs7 in fine and super fine flour (maida) to Rs64 per kg. The price of 10kg bag of flour no. 2.5 has been fixed at Rs525 as compared to Rs595. However, in March, on the arrival of wheat crop from Sindh, the price of flour no. 2.5 in the province was Rs42-43 per kg while fine and super fine flour variety was Rs45-46. He said the flour prices had been reduced to provide relief to masses as the Sindh government is likely to start wheat supply to millers from Monday at an issue price of Rs3,637 per 100kg bag. Yousuf said millers had received challans from the Sindh government on Oct 19 which was submitted to the State ...

Balochistan Governor Amanullah Khan Yasinzai has underlined the need for boosting economic cooperation between Pakistan and Iran. Presiding over the concluding session the 8th Pak-Iran Joint Border Trade Committee meeting here on Wednesday, he said that people of both countries were enjoying cordial and close relations, adding the decisions taken by the committee would be implemented for enhancing bilateral trade. The governor said the present government was giving special attention to strengthening economic relations with all neighbouring countries. He said the governments, as well as people of Pakistan and Iran, were enjoying close bilateral trade relations.   Speaking on the occasion, Deputy Governor of Sistan-Baluchestan for Economic Affairs Coordination Mandana Zanganeh, who was leading the Iranian delegation, said that the meeting discussed difficulties faced by the traders of both countries in the bilateral trade and participants from Pakistan and Iran have given sugg...

Ride-hailing firm Uber UBER.N has offered more than 1 billion euros to buy Daimler DAIGn.DE and BMW's BMWG.DE joint mobility services company Freenow, Manager Magazin said on Wednesday. While Daimler is ready to sell, BMW’s Chief Executive Oliver Zipse is wavering about selling up, and is instead open to offering Uber a stake, Manager Magazin added.

Minister for Petroleum Division Omar Ayub Khan has acknowledged that the country is going to face a serious natural gas shortage in upcoming winter months due to a gap between the demand and supply of gas. He highlighted that during winter months, gas consumption by the domestic sector increased manifold on account of use of room and water heaters. According to him, the Sui Northern Gas Pipelines Limited (SNGPL) will face 370 mmcfd shortfall while the Sui Southern Gas Company (SSGC) network has already started to face a short supply and the shortage is expected to go up to 250 mmcfd in winters. The minister said that in September the gas supply at SSGC was 993 mmcfd against 1,109 mmcfd in the same month last year. The energy minister was responding to a question of Shaza Fatima Khawaja, MNA of the Pakistan Muslim League-Nawaz, in the National Assembly. Ms Khawaja asked if the country was going to face a shortage of natural gas in this winter and that would it be more severe in t...

As a technology-driven rally brings U.S. stock indexes within striking distance of fresh records, concerns that big names are over-extended and that new regulation might be coming have some investors diversifying beyond the rally leaders. The S&P 500's five biggest companies, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O, Alphabet Inc GOOGL.O and Facebook Inc FB.O now account for 28% of the index's weighting and have been responsible for 25% of its earnings, Goldman Sachs said earlier this month. On average, these tech and internet-driven stocks have gained 49.23% this year, compared to a 7% gain for the S&P 500 - and are up 9.6% on average since Sept. 21, versus 6.6% for the S&P 500. They are expected to report strong third-quarter earnings in coming weeks, proving their mettle in a year when the coronavirus pandemic fueled a work-from-home economy while devastating companies linked to sectors like travel, restaurants, and fossil fuels. Still...

Local auto manufacturers have asked the government to cut down taxes to reduce prices of cars and off-road vehicles in the country. The concerns were shared in a meeting organised by the government with local manufacturers seeking proposals to help reduce the prices of locally-manufactured vehicles. With the demand and supply balance tilting again in favor of the former, premiums charged by showrooms have increased prices for buyers. “We have informed the government that there were around 40pc taxes on each car and off-road vehicle. The best possible way to reduce prices would be through abolishment of some taxation on new cars being assembled in the country,” said Indus Motor Company (IMC) Chief Executive Ali Asghar Jamali. Talking to media on Thursday, he said that government and auto sector will review vehicle prices in December as they are going to negotiate a new auto policy. “Auto sector foresees a promising future and aims to be the biggest contributor to the government’s...

“The government is taking various steps to put economy on the path of sustainable growth and create employment opportunities for the youth, Finance Adviser Dr Abdul Hafeez Shaikh claimed We hope that the graph of unemployment will be reduced sharply in coming days,” he said while speaking to the office bearers and members of Lahore Chamber of Commerce and Industry (LCCI). “When the PTI government came to power, it had a bulk of challenges, especially a high current account deficit and artificially high exchange rate. These factors were causing de-industrialisation, hampering exports and promoting an import based economy,” he said. Shaikh believed that the government is heading towards the right direction by focusing on enhancing export. In this context, the government has reduced duties on numerous raw materials besides subsidising energy rates to export sectors. He committed to solve the problem of refunds on permanent basis, claiming that a lot of improvements were made in ...

Adviser to the Prime Minister on Finance and Revenue Abdul Hafeez Sheikh has the whole world is appreciating economic growth of Pakistan. “Due to coronavirus our economy shrunk but we are reviving the economy”, Abdul Hafeez Sheikh said while addressing the members of the business community at the Governor House Lahore. He appreciated the role of the business community in uplifting the economy of the country. Hafeez Sheikh said that despite limited resources and the COVID-19 pandemic, the government has tried to provide maximum relief to the common man. The adviser said that the incumbent government has paid loans up to rupees 5trillion. Shaikh said that PTI government had given a historic relief package for the construction sector. He vowed to control over increasing inflation in the country. On the occasion, the business community raised problems being faced by them. Both the government personalities assured them to address their problems. Earlier this week, Adviser to Prime M...

A slight decrease in fuel prices across Pakistan is recommended in a summary forwarded by OGRA to the Petroleum Division. From October 16, a slight decrease is likely in petrol prices across Pakistan as the government may slash prices slightly. The final prices of petroleum products, however, will be decided by the Ministry of Finance after taking into account Prime Minister Imran Khan’s recommendations. On September 30, the federal government had decided to continue the existing rates of petrol, light diesel and kerosene oil for the next 15 days. According to a statement issued by the finance division, prices of the petroleum products in the country were kept unchanged for a fortnight, effective from October 1. However, Rs2.4 were decreased on high-speed diesel for the next 15 days. The price of petrol was maintained at Rs 103.97 per litre, while kerosene oil, and light diesel remained at Rs65.29 and Rs62.86, respectively.

With the lowest GDP growth of 0.5% among all South Asian nations, the World Bank (WB) has warned Pakistan about external financing risks that could be compounded by difficulties in rolling-over bilateral debt from non-traditional donors and tighter international financing conditions. The WB’s report on South Asia reveals that regional growth was expected to rebound to 4.5% in FY21 against -7.7% in the last fiscal year. Afghanistan’s growth is now projected at 2.5%, Maldives 9.3%, Sri Lanka 3.3%, Bangladesh 1.6%, Bhutan 0.6%, Pakistan 0.5% and India 5.4% in FY21. India’s economy had contracted by 9.6% in FY20. The report stated that there are considerable downside risks to the outlook of Pakistan’s economy, with the most significant being a possible resurgence of the coronavirus, triggering a new wave of global and/or domestic lockdowns and further delaying the implementation of critical structural reforms. “Locust attacks and heavy monsoon rains could lead to widespread crop dam...