Current Final

Category: Business

  • Toyota IMC unveils locally-made Toyota Corolla Cross Hybrid in Pakistan

    Toyota IMC unveils locally-made Toyota Corolla Cross Hybrid in Pakistan

    Indus Motor Company (IMC) celebrated the launch of the 4th generation Toyota Corolla Cross Hybrid Electric Vehicle (HEV) at its manufacturing facility in Karachi.

    This marks a significant achievement for IMC, emphasising the ‘Made in Pakistan’ initiative and showcasing the strong bond between Japan and Pakistan. Notable figures present at the ceremony included Federal Secretary Asad Rehman Gilani, Toyota’s top leadership and the Japanese Ambassador to Pakistan, Mitsuhiro Wada. 

    Yoshiyuki Takai, expressing optimism about the Corolla Cross HEV’s reception in Pakistan, highlighted the environmental benefits of increased hybrid vehicle adoption.

    Gilani, on behalf of the government, congratulated IMC and reiterated the commitment to support hybrid and electric technologies, aligning with the Auto Policy 2021–26. IMC’s CEO, Ali Asghar Jamali, emphasised the company’s dedication to sustainability, revealing an investment exceeding $100 million in manufacturing the first locally produced HEV.

    The Corolla Cross HEV boasts a smooth and efficient 1800-cc engine with hybrid and gasoline options. Jamali also outlined IMC’s contribution to the local automobile sector, encompassing a comprehensive value chain, part manufacturers, authorised dealerships, and a substantial workforce of over 450,000 people.

  • SNGPL proposes 137.62% hike in gas tariff amidst financial challenges

    SNGPL proposes 137.62% hike in gas tariff amidst financial challenges

    Sui Northern Gas Pipelines Limited (SNGPL) has proposed a substantial 137.62 per cent increase in gas tariffs per Metric Million British Thermal Unit (MMBtu), aiming for implementation in June 2023. 

    This tariff adjustment, seeking Rs1,715 per MMBtu, is intended to address the company’s financial shortfall of Rs181.51 billion projected for the fiscal year 2023–24. 

    The plea to the Oil and Gas Regulatory Authority (OGRA) emphasises the necessity of fixing the gas price at Rs2,961.98 per MMBtu.

    Currently priced at Rs1,246.49 per MMBtu, SNGPL proposes a hike of Rs1,209.14 per MMBtu in arrears, with an additional Rs56.48 per MMBtu attributed to rupee devaluation. OGRA is scheduled to review SNGPL’s plea on December 11.

    In a related context, the caretaker government, led by Finance Minister Dr Shamshad Akhtar, has announced plans to increase gas prices in Pakistan starting in January 2024. 

    Dr Akhtar highlighted that this decision aligns with Pakistan’s commitment to the International Monetary Fund (IMF), aiming for a comprehensive review of power tariffs. 

    The government’s broader economic strategy involves reducing debts, prioritising development initiatives, and implementing governance reforms within government enterprises.

    Upon reaching a staff-level agreement with the IMF, Pakistan anticipates receiving approximately 70 million US dollars, contributing to a total assistance amount of about $1.9 billion under the IMF programme. 

    Dr Akhtar emphasised the need to address the circular debt in the power and gas sectors, which currently exceeds 4 per cent of the Gross National Product (GNP). 

    Immediate measures have been initiated to mitigate this challenge, including adjustments to electricity and gas rates. 

    Dr Akhtar underscored the importance of a market-based exchange rate policy and the augmentation of foreign exchange reserves as key priorities for economic stability.

  • Electricity bills to reflect Rs3.07 per unit hike in December

    Electricity bills to reflect Rs3.07 per unit hike in December

    The National Electric Power Regulatory Authority (NEPRA) has officially sanctioned a Rs3.07 per unit increase in electricity prices for October 2023, attributed to Fuel Charges Adjustment (FCA), as communicated in its notification on Tuesday.

    This tariff adjustment will be separately reflected in the power bills based on the units consumed by consumers of all ex-Wapda DISCOs (XWDISCOs) during October 2023. NEPRA has specified that XWDISCOs are to incorporate the FCA in the billing cycle for December 2023.

    It is important to note that this tariff adjustment does not apply to K.Electric (KE) consumers, Electric Vehicle Charging Stations (EVCS), or lifeline consumers.

    The adjustment in the approved tariff for Ex-WAPDA DISCOs was prompted by variations in fuel charges for October 2023, as indicated in the request submitted by CPPA-G via a letter dated November 15, 2023, the authority clarified. NEPRA emphasised the need for XWDISCOs to adhere strictly to court orders while implementing the FCA.

    In a separate development, a NEPRA inquiry report disclosed that numerous electricity consumers in Pakistan were overcharged during July and August of the current year. 

    The report highlighted that distribution companies (DISCOs) billed consumers for over 40 days, leading to widespread overbilling. NEPRA identified MEPCO, followed by GEPCO, FESCO, LESCO, and HESCO, as the main contributors to this overbilling, holding all DISCOs responsible for this unjustified practice.

    The report recommended legal actions against power distribution companies, including K-Electric Limited (KEL), under NEPRA Fine Regulations, 2021, for violating the provisions of the NEPRA Act, Consumer Service Manual (CSM), and tariff terms and conditions.

  • NEPRA exposes overbilling scandal impacting thousands of electricity consumers 

    NEPRA exposes overbilling scandal impacting thousands of electricity consumers 

    An investigative report by the National Electric Power Regulatory Authority (NEPRA) unveiled a disconcerting situation in Pakistan, affecting thousands of electricity consumers during the months of July and August this year.  

    The report disclosed that distribution companies (Discos) had billed consumers for over 40 days, a major contributor to the issue of overbilling in the mentioned months. Notably, MEPCO, followed by GEPCO, FESCO, LESCO, and HESCO, were identified as the Discos significantly involved in this overbilling, implicating all Discos collectively in this unjustified practice. 

    As a response to these findings, NEPRA recommended initiating legal proceedings against the power distribution companies, including K-Electric Limited (KEL), under NEPRA Fine Regulations, 2021. The basis for these actions lies in the violation of the provisions outlined in the NEPRA Act, Consumer Service Manual (CSM), and tariff terms and conditions. 

    Expressing concern, NEPRA emphasised the unfortunate deliberate malpractices by distribution companies undertaken to conceal their inefficiencies. These practices resulted in higher electricity bills for thousands of consumers.  

    The report highlighted the failure of Discos to adhere to the percentage checking mechanism outlined in the Consumer Service Manual (CSM), along with the unauthorised charging of detection bills, contravening Clauses 9.1 and 9.2 of the CSM, which provide a specific procedure for charging detection bills. 

    NEPRA noted with concern that detection bills charged by Discos were found to be fake and frivolous, contributing to a significantly low recovery ratio in certain Discos.  

    The authority initiated an inquiry in response to widespread complaints from consumers across the country regarding excessive, inflated, and erroneous bills during July and August 2023. A hearing was conducted on November 13, 2023, wherein CEOs of all distribution companies participated online, presenting their perspectives. 

    During the proceedings, it was observed that numerous distribution companies were charging metre readings, with discrepancies between snap readings and the readings recorded on consumers’ bills. 

    Additionally, some cases were identified where snaps of metre readings were either invisible or intentionally not taken. Monthly metre readings were reported to be taken beyond the standard billing cycle of 30 days in certain instances, leading to undue and inflated charging of upper slab bills for less frequent users and a consequent change in category from protected to unprotected. 

     

  • Pakistan set to host US officials for crucial bilateral talks 

    Pakistan set to host US officials for crucial bilateral talks 

    In a confirmation made by the foreign office spokesperson on Sunday, Pakistan is set to host successive visits by senior US officials, marking a continuation of bilateral consultations between the two nations.  

    According to Mumtaz Zahra Baloch, the foreign office spokesperson, Pakistan and the United States are actively engaged in discussions on a spectrum of issues, prompting the need for reciprocal visits to facilitate and further these consultations. 

    Scheduled to commence on December 4, Assistant Secretary of State for the Bureau of Population, Refugees, and Migration, Julieta Valls Noyes, is expected to visit Pakistan until December 6.  

    Following her visit, the Special Representative for Afghanistan, Thomas West, is slated to be in Islamabad from December 7 to 9. Subsequently, Principal Deputy Assistant Secretary for Pakistan, Elizabeth Horst, is scheduled to visit from December 9 to 12. 

    The spokesperson for the foreign office emphasised that these visits are integral to the ongoing negotiations between Pakistan and the US, with a primary focus on addressing issues pertaining to Afghanistan. Notably, the discussions are not confined solely to matters related to Afghanistan but encompass a broader spectrum of bilateral concerns. 

    According to the US State Department, Julieta Valls Noyes will engage with senior government officials as well as representatives from non-governmental organisations and international partners.  

    The purpose of her visit is outlined as discussions on “shared efforts to protect vulnerable individuals and accelerate safe, efficient relocation and resettlement of Afghan refugees in the US immigration pipeline.” 

    These diplomatic engagements underscore the commitment of both nations to maintain an open dialogue and collaborate on multifaceted challenges, with a particular emphasis on the evolving situation in Afghanistan. 

  • China to assist Pakistan in improving crop growth through advanced farming

    China to assist Pakistan in improving crop growth through advanced farming

    Liu Jianming, Deputy Party Secretary and Deputy Political Commissar of the Xinjiang Production and Construction Corps, announced that China is set to extend support to Pakistan by providing top-quality, disease-resistant, high-yield hybrid seeds for cotton, canola, and wheat crops. 

    The objective is to achieve robust crop production while simultaneously addressing the escalating demands of the textile industry and earning essential foreign exchange. During his visit to the head office of Guard Agricultural Research and Services, he emphasised, “We aim for enhanced crop production through modern mechanised agricultural farming,” according to a news release. 

    Furthermore, Liu affirmed that China will collaborate with Pakistan in the production of cotton hybrid seeds, encompassing sunflower, maize, sesame, and other varieties. He also mentioned that China would share its successful experience with “Water Saving Technology.” 

    Expressing appreciation for the research activities of Guard Agriculture Research, Liu stated that all nine members of the delegation were keenly interested and extended an invitation to visit China for one-on-one interactions with stakeholders. 

    Liu asserted, “Together, we can leverage the power of innovation to address the challenges confronting the agricultural sector in Pakistan,” underscoring China’s readiness to provide technical expertise, research collaboration, and necessary resources for the development of cutting-edge hybrid seeds. 

    Highlighting the significance of the agriculture sector, he mentioned that China is eager to support Pakistan in hybrid seeds, with the shared goal of enhancing crop productivity and contributing to sustainable agricultural practices. Deputy Consul General Cao Ke was also present during the occasion. 

    According to APP, earlier in the event, Shahzad Ali Malik, CEO of Guard Agri, extended a warm welcome to the visiting delegation. He informed them, “We are pioneers in developing the first-ever Guard Hitech hybrid rice seed, which not only doubled production but also significantly increased farmers’ profitability in Pakistan.” 

    Malik mentioned that Guard Agri has been actively engaged in research since 1999 in collaboration with the Longping Chinese Company. He added that their rice is exported to 41 countries across Asia, Europe, the Middle East, and North America. The CEO emphasised ongoing research in rice, wheat, cotton, maize, oilseed, and vegetables in various stations across Punjab and Sindh provinces. 

    “Pakistan aims to enhance the production of all crops through modern technology and Chinese expertise,” Malik stated, expressing gratitude to the Chinese delegation for visiting Pioneer Company. He accepted their invitation to visit Xinjiang Province for further cooperation and collaboration in the agriculture sector. 

    Subsequently, Liu and Shahzad exchanged souvenirs to mark the occasion. 

  • Pakistan and Saudi Arabia reach consensus on long-awaited GCC free trade agreement

    Pakistan and Saudi Arabia reach consensus on long-awaited GCC free trade agreement

    Pakistan’s Commerce and Industries Minister, Dr Gohar Ejaz, led an official delegation to Saudi Arabia. The delegation included secretaries from the Ministry of Commerce, the Board of Investment (BOI), and officials from the Attorney General’s Office. 

    They engaged in discussions with the GCC Chief Negotiator to finalise the investment-related aspects of the Gulf Cooperation Council (GCC) Free Trade Agreement (FTA). Technical teams delved into details such as investment protection and facilitation. 

    Dr Ejaz expressed optimism about strengthening economic ties and highlighted the significance of the investment chapter. 

    The GCC FTA is anticipated to enhance trade, investment, and job opportunities between Pakistan and the GCC. 

    Both parties are considering a joint business forum to further promote economic collaboration, and Dr Ejaz expressed gratitude for the warm hospitality extended by the GCC.

  • Pakistan’s trade deficit shrinks by over 30% in November

    Pakistan’s trade deficit shrinks by over 30% in November

    In the initial five months of the fiscal year 2024, Pakistan’s trade performance has witnessed notable enhancements, marking a positive stride towards economic stability, as articulated by Dr Gohar Ejaz, the Federal Minister for Commerce and Industries, in a communication on X (formerly Twitter).

    The minister conveyed his unwavering confidence in Pakistan’s trajectory towards economic recovery, emphasising the commitment to diligent efforts aimed at job creation, economic growth, and the overall betterment of citizens’ lives.

    It is noteworthy that Pakistan’s exports experienced a year-on-year increase of 1.93 per cent, reaching $12.17 billion in the aforementioned five-month period, while imports exhibited a substantial decrease of 17.32 per cent to $21.55 billion.

    Consequently, the trade deficit contracted to $9.38 billion, registering a noteworthy decline of 33.59 per cent compared to the corresponding period in the preceding year.

    Zooming in on November’s performance, Pakistan’s exports demonstrated a robust year-on-year growth of 7.66 per cent, totaling $2.57 billion, whereas imports saw a decline of 13.47 per cent to $4.46 billion.

    This translated into a trade deficit of $1.89 billion for November, marking a notable reduction of 31.72 per cent compared to November 2022.

  • Pakistan’s inflation soars to 29.2% in November, exceeding October figures

    Pakistan’s inflation soars to 29.2% in November, exceeding October figures

    In November, Pakistan’s headline inflation surged to 29.2 per cent year-on-year, as reported by the Pakistan Bureau of Statistics, surpassing the October figure of 26.9 per cent. 

    On a monthly basis, there was a 2.7 per cent increase. The average inflation for July-November reached 28.62 per cent, up from 25.14 per cent in the same period the previous year.

    CPI inflation in urban areas rose to 30.44 per cent in November 2023, compared to 25.5 per cent in the previous month and 21.6 per cent in November 2022. On a monthly basis, it increased to 4.34 per cent, reflecting a substantial jump from the previous month and November 2022.

    Conversely, rural CPI inflation stood at 27.53 per cent year-on-year in November 2023, showing a slight decrease from the previous month but an increase from November 2022.

    Anticipated by several brokerage houses, the November inflation spike, driven partly by a rise in gas tariffs, aligns with predictions. 

    JS Global and Arif Habib Limited had forecasted CPI-based inflation to be around 28.26 per cent and 28.2 per cent, respectively.

    Beyond inflation, Pakistan faces economic challenges. A recent staff-level agreement with the IMF, subject to board approval in December, will provide access to SDR 528 million. The International Monetary Fund (IMF) expects inflation to decrease in the coming months due to improved supply conditions.

    Despite maintaining a key policy rate of 22 per cent, the State Bank of Pakistan projects a downward trajectory for inflation, citing fiscal consolidation, commodity availability, and exchange rate alignment as offsetting factors against risks like global oil price volatility and increased gas tariffs.

    Caretaker Finance Minister Dr Shamshad Akhtar expressed optimism about gradual inflation reduction, attributing it to improved financial management. The government believes effective policies will contribute to an overall improvement in economic conditions.

  • Pakistan’s forex reserves rebound: SBP gains $77 million in a week 

    Pakistan’s forex reserves rebound: SBP gains $77 million in a week 

    According to data released on Thursday, the State Bank of Pakistan (SBP) witnessed a weekly increase of $77 million in its foreign exchange reserves, reaching $7.26 billion as of November 24.  

    The total liquid foreign reserves for the country amounted to $12.39 billion, with commercial banks holding net foreign reserves at $5.13 billion. 

    During the week ending on November 24, 2023, SBP’s reserves increased by $77 million, reaching $7,257.0 million. Contrastingly, the previous week saw a decrease of $217 million in Pakistan’s central bank reserves. 

    In July of this year, the central bank’s reserves received a boost as Pakistan obtained the initial tranche of approximately $1.2 billion from the International Monetary Fund (IMF) following the approval of a new $3-billion Stand-By Arrangement (SBA).  

    This boost was complemented by inflows from Saudi Arabia and the UAE. 

    However, the SBP reserves faced pressure due to debt repayments, a surge in import payments after the easing of restrictions, and a lack of fresh inflows. 

    In a significant development, the IMF announced last week that its staff and Pakistani authorities had reached an agreement on the first review of the SBA.  

    The staff-level agreement is pending approval by the IMF Executive Board. 

    The IMF team reached a staff-level agreement (SLA) with the Pakistani authorities on the first review of their stabilization program supported by the IMF’s $3 billion (SDR2,250 million) SBA.  

    Upon approval, approximately $700 million (SDR 528 million) will become available, bringing total disbursements under the program to almost $1.9 billion. 

    Following the SLA with the IMF, Caretaker Finance Minister Dr Shamshad Akhtar expressed confidence that external financing would not be an issue, anticipating inflows in December 2023 to contribute to an increase in foreign exchange reserves.