Current Final

Category: Business

  • Govt’s borrowing soars to over Rs1.6 trillion in three months, marking a fivefold increase from last year

    Govt’s borrowing soars to over Rs1.6 trillion in three months, marking a fivefold increase from last year

    In the current fiscal year, FY24, the federal government’s net borrowing to meet its financial obligations for governing the nation amounted to Rs1.6 trillion.

    According to official data released by the State Bank of Pakistan (SBP), the government secured loans exceeding Rs1.6 trillion in cash from the domestic banking sector during the first quarter, up significantly from the Rs261 billion borrowed during the same period in the previous year.

    During this period, the government obtained a net loan of Rs98 billion from SBP. It’s worth noting that the government is obligated to adhere to International Monetary Fund regulations, which prohibit direct borrowing from the central bank.

    Additionally, the government raised Rs1.5 trillion from scheduled banks in the first quarter of FY24 (up to September 8) to address the budget deficit.

    The net borrowing by the government for budgetary support in FY23 totaled Rs3.74 trillion, marking an increase from Rs3.13 trillion in FY22.

  • Sindh raises factory worker salaries: Skilled workers to earn Rs33,280 monthly

    Sindh raises factory worker salaries: Skilled workers to earn Rs33,280 monthly

    The Sindh Minimum Wage Board, in a recent announcement, has officially revised the compensation rates for factory workers. Chairman Zulfiqar Ali Nizamani revealed that skilled workers in the province will now receive a minimum monthly wage of Rs33,280, while unskilled workers will be entitled to a minimum wage of Rs32,000.

    According to ARY News, Nizamani emphasised the mandatory nature of these minimum wages for factory owners, with a provision for objections to be submitted within a 14-day window. He also warned of punitive measures against those who fail to adhere to these wage standards.

    Notably, the Sindh High Court has intervened in this matter, ordering the enforcement of the minimum wage set by the Sindh government. Specifically, the court mandated that sanitary workers must receive a minimum wage of Rs25,000.

    Additionally, the labour department has been directed to gather reports from various departments to assess and oversee compliance with these wage regulations.

  • Microsoft to buy ‘Call of Duty’ maker, Activision, for $69 billion

    Microsoft to buy ‘Call of Duty’ maker, Activision, for $69 billion

    Xbox-owner Microsoft is edging closer to finalising its $69 billion acquisition of the video game giant Activision Blizzard, the creator of ‘Call of Duty.’ The UK regulatory body, on Friday, gave its approval for the revamped deal, addressing previous regulatory concerns.

    Microsoft, a US tech giant, initiated this bid early last year, aiming to secure its position as the world’s third-largest gaming company by revenue, following China’s Tencent and Japan’s PlayStation maker, Sony.

    This acquisition has undergone rigorous scrutiny from both US and UK regulators. The Competition and Markets Authority (CMA) in the UK had previously blocked an earlier version of the deal in April. However, the CMA, in its recent statement, mentioned that the “restructured deal makes important changes” and paves the way for potential clearance. The CMA will now consult on the required “remedies” before making a final decision.

    Microsoft’s Vice Chairman and President, Brad Smith, expressed optimism about the CMA’s review process, stating, “We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work towards earning approval to close the deal by October 18.”

    Bobby Kotick, CEO of Activision Blizzard, which also produces popular games like ‘Diablo’ and ‘Candy Crush,’ hailed the UK regulator’s announcement as “a significant milestone for the merger.”

    The revised proposal submitted by Microsoft to the CMA last month significantly alters the deal. Notably, it ensures that the cloud distribution of these critical games remains with a strong independent supplier, Ubisoft Entertainment, instead of coming under Microsoft’s control. Colin Raftery, Senior Director of Mergers at the CMA, emphasised this change.

    The original concerns of the CMA have been addressed, according to its Chief Executive, Sarah Cardell. She noted, however, that presenting this restructuring during the initial investigation would have been preferable, emphasising the costs and delays incurred when effective remedies are not proposed promptly.

    Outside the UK, the European Union approved the deal in May, while the US antitrust regulator temporarily halted its efforts to block the acquisition after a legal setback.

    Regulators have been concerned about Microsoft potentially restricting access to highly popular games by making them exclusive to the Xbox platform. In July, Microsoft and Sony reached an agreement to continue releasing the ‘Call of Duty’ video game on the PlayStation console, resolving previous disputes where Sony sought to oppose Microsoft’s acquisition of Activision Blizzard.”

  • Islamabad Airport to be outsourced, international firms meeting underway in Dubai

    Islamabad Airport to be outsourced, international firms meeting underway in Dubai

    Today in Dubai, a crucial meeting of the Civil Aviation Authority (CAA) is set to take place, focusing on the outsourcing of Islamabad International Airport.

    According to ARY News, CAA officials have convened in Dubai to participate in this pivotal session, marking a significant step in the outsourcing process for Islamabad International Airport.

    This gathering will see the participation of international firms that have expressed interest in becoming part of Islamabad Airport’s outsourcing initiative. It’s noteworthy that the federal government intends to implement a phased approach to outsourcing major airports nationwide.

    Previously, the federal government had initiated the process by issuing tenders to solicit applications for outsourcing Islamabad International Airport for a duration of 15 years. The Civil Aviation Authority has stipulated that interested bidders are required to submit their applications along with a Rs5,000 fee to the CAA by November 8.

    Recent developments reveal that the government has made the decision to outsource Karachi, Lahore, and Islamabad International Airports. Notably, countries such as the United Arab Emirates, Qatar, Turkey, China, and Saudi Arabia have expressed a keen interest in the outsourcing of all three airports.

    In response to this decision, CAA unions launched a protest movement, and despite attempts at negotiation by Aviation Minister Khawaja Saad, talks have proven unsuccessful. CAA employees remain steadfast in their opposition to the outsourcing of airports, with a spokesperson for the CAA Union emphasising that the protest will persist until their demands are met.

  • Rs5.1 trillion debt threatens energy sector, govt thinking about privatisation of power companies

    Rs5.1 trillion debt threatens energy sector, govt thinking about privatisation of power companies

    The caretaker government is contemplating significant changes in response to mounting circular debt and losses in the power and gas sectors in Pakistan.

    Two key strategies are under consideration: privatising both power generation (Gencos) and distribution companies (Discos) or transferring management control to private entities for a duration of 20 to 25 years.

    This policy shift is driven by the alarming circular debt crisis in the power sector, totaling Rs2.3 trillion, and a staggering Rs2.8 trillion in the gas sector. Combined, this amounts to over $17 billion, endangering sector sustainability.

    Energy Minister Muhammad Ali disclosed that the government is considering transferring management responsibilities for four power generation plants and 10 state-run Discos to private entities under long-term concession agreements. Discussions with the World Bank’s International Finance Corporation (IFC) for such agreements are ongoing.

    The power generation plants under consideration include the Haveli Bahadur Shah and Balloki power plants, the Guddu power plant, and the Nandipur power plant. The government is exploring options such as transferring Discos to provincial governments, complete privatisation, or management delegation to private investors.

    After privatisation or management transfer, uniform tariffs may no longer be mandatory, allowing for varying tariff structures. This move is aimed at reducing government subsidies and losses.

    The government is also considering public listings, but only for profitable entities. This shift towards privatisation is seen as a means to spur economic growth, job creation, and increased tax revenues.

    Regarding gas availability, the situation is expected to be similar to the previous year, with gas load-shedding planned. Gas tariffs are set to increase, particularly for low-income consumers.

    Government-independent power producer (IPP) agreements will be honoured as international investments prevent alterations. Short-term strategies to reduce circular debt include cost reduction measures, extending loan terms, boosting local power generation, and upgrading transmission lines.

    The gas sector’s annual losses of Rs350 billion are a significant concern, primarily due to the reliance on imported liquefied natural gas (LNG) procured at a higher cost than what is sold domestically.

    In summary, the Pakistani government is considering a major overhaul of the power and gas sectors, with privatisation and management transfers as primary options to address circular debt and losses. These reforms aim to reduce financial burdens, encourage efficiency, and stimulate economic growth, all while ensuring essential services remain accessible to consumers.

  • Federal ministers predict petrol price reduction, oil authority cautions against speculation

    Federal ministers predict petrol price reduction, oil authority cautions against speculation

    The Oil and Gas Regulatory Authority (OGRA) has cautioned against engaging in speculative discussions regarding the future pricing of petroleum products. This advisory comes in response to recent statements made by federal ministers suggesting potential reductions in Petroleum Oil and Lubricants (POL) rates during the upcoming fortnightly review.

    Caretaker Federal Commerce and Industries Minister Gohar Ejaz and Interim Federal Minister for Information and Broadcasting Murtaza Solangi had asserted last week that POL prices might see a decrease, attributing this possibility to the strengthening of the Pakistani rupee against the US dollar.

    Over the past two weeks, the rupee has appreciated by approximately Rs16 against the dollar, prompting these statements. It’s important to note that Pakistan, as a petroleum importer, conducts its transactions in US dollars.

    In the preceding fortnightly review, the caretaker government had substantially raised the prices of petrol and diesel, setting historic highs at Rs331.38 and Rs329.18 per litre, respectively.

    In light of the ministers’ remarks, OGRA has released a statement reiterating the importance of refraining from speculative discourse concerning petroleum product prices. The regulatory authority clarified that these prices in Pakistan are primarily influenced by international market rates and the prevailing dollar-to-ruble exchange rate.

    OGRA pointed out that recent times have witnessed an upsurge in global petroleum prices, while the rupee has demonstrated an improvement against the dollar. However, OGRA emphasised that there is still one week remaining before the announcement of the new pricing structure.

    The statement from OGRA further underscores that any conjecture regarding price fluctuations during this interim period is highly speculative and could potentially disrupt the efficient functioning of the petroleum supply chain.

  • Pakistani rupee settles at Rs290.86 against US dollar, marking 14th consecutive gain

    Pakistani rupee settles at Rs290.86 against US dollar, marking 14th consecutive gain

    In continuation of its recent positive streak, the Pakistani rupee extended its upward trajectory against the US dollar for the 14th consecutive session, marking a gain of 0.31 per cent in the interbank market on Monday.

    According to data released by the State Bank of Pakistan (SBP), the rupee closed at Rs290.86, representing a noteworthy increase of Re0.9 in the inter-bank market. This sustained appreciation trend has seen the rupee make significant gains, amounting to 5.28 per cenr, or Rs16.24, since its record low of Rs307.1 against the US dollar on September 5 in the inter-bank market.

    In the previous week, the rupee experienced a further appreciation of 1.74 per cent, concluding positively for all five trading sessions and settling at Rs291.76 against the US dollar in the inter-bank market by the end of the week. Additionally, the rupee’s performance in the open market has strengthened, reducing the ‘premium’ to negligible levels and aligning with the benchmarks established by the International Monetary Fund (IMF).

    While several experts attribute the rupee’s recent gains to administrative and enforcement measures, some argue that these increases reflect the currency’s intrinsic value when speculative influences and negative sentiment are excluded.

  • Pakistan’s Civil Aviation Authority is dividing into two entities

    Pakistan’s Civil Aviation Authority is dividing into two entities

    A specialised committee consisting of nine members has been established to supervise the division of the Pakistan Civil Aviation Authority (CAA).

    Heading this committee is Shazia Rizvi, who holds the position of Joint Secretary II within the Ministry of Aviation. Assisting her as the committee’s deputy is Vice Air Marshal Taimoor Iqbal.

    As per the official notification, Vice Air Marshal Taimoor Iqbal will serve as the committee’s deputy. The committee will also include other distinguished members, namely Asif Iqbal, the Joint Secretary of the Ministry of Aviation; Abdul Malik from the Ministry of Finance; and Nadir Shafiq, the Deputy Director General of Regulatory CAA.

    In addition to the aforementioned members, Commodore Mirza Aamir, President of the Aircraft Accident Investigation Board; Saqib Butt, Director of Finance at CAA; Sameer Saeed, responsible for Aviation Security; Sadiqul Rahman, Director of APS; and Abid Ali Shah, Director of HR at CAA, will also be integral parts of this committee.

    The committee has been allocated a deadline of October 15th to carry out its assigned tasks. The primary objective of this restructuring initiative is to bifurcate the CAA into two distinct entities, namely the Pakistan Airport Authority (PAA) and the Bureau of Air Safety Investigation (BASI).

    In addition to the creation of these new entities, the committee holds the vital responsibility of seamlessly transferring assets, funds, personnel, records, and equipment between them.

  • Are you a woman looking to start your own business? State Bank of Pakistan has an interest-free loan for you

    Are you a woman looking to start your own business? State Bank of Pakistan has an interest-free loan for you

    In pursuit of fostering both economic stability and enhanced female workforce participation, the State Bank of Pakistan (SBP) has initiated a noteworthy endeavor. It involves extending interest-free loans to unemployed women, empowering them to embark on substantial entrepreneurial ventures.

    During a seminar titled ‘Women Bankability and Banking on Equality’ at the Government Polytechnic Institute for Women in Dera Ismail Khan, Fazal Muqeem, Deputy Chief Manager of SBP in Dera Ismail Khan, articulated this pivotal announcement.

    Muqeem underscored that women, through the establishment of their own businesses, would not only be able to provide for their families but also confront the pervasive impact of the current inflationary trends that affect every echelon of society. He highlighted the financial difficulties faced by economically disadvantaged individuals in meeting their daily expenses due to limited income avenues.

    In light of the restricted employment opportunities within the country, the pursuit of self-employment emerges as the most viable option in such circumstances, according to Muqeem. He elucidated that these initiatives are the result of collaborative efforts between the Prime Minister and the central bank, aimed at cultivating productive citizenship among unemployed women.

    These policies have facilitated the opening of bank accounts for unemployed women on an equitable basis with men, thereby enabling them to access interest-free loans of up to Rs0.5 million.

    Muhammad Zubair, Assistant Director, asserted that the contemporary era is characterised by digital mobility, and citizens should harness this resource to their advantage. He encouraged citizens to become income tax filers, which would help them reduce their tax liabilities.

    Sara Khan, Principal of GPI for Women, expressed her gratitude to the SBP for their support and highlighted their institution’s dedication to equipping students with skills that empower them to be self-sufficient and valuable contributors to society.

    According to Geo News, she envisioned that numerous women would benefit from SBP’s policy in the future and hoped that such insightful seminars would continue to be organised, enabling the underprivileged and eligible women of Dera Ismail Khan to reap the benefits.

    The event also saw the presence of key figures such as Muhammad Amir Ejaz, Assistant Chief Manager of SBP in Dera Ismail Khan, Rizwanullah Shah, Zafar Awan, Placement Officer at GPI (Women), and a substantial gathering of teachers and female students.

  • Tesla CEO Elon Musk is buying an iPhone 15 due to its ‘incredible’ camera

    Tesla CEO Elon Musk is buying an iPhone 15 due to its ‘incredible’ camera

    Apple’s latest flagship, the iPhone 15, made headlines after its debut at the company’s Wonderlust event on September 12. It became available to eager customers on September 22, causing long queues at Apple stores worldwide. Billionaire Elon Musk has announced his intention to purchase the iPhone 15, a sentiment shared by many.

    Apple’s CEO, Tim Cook, took to X (formerly Twitter) to share images featuring renowned photographers Stephen Wilkes and Reuben Wu. One image depicts the photographers presenting their work to Cook, demonstrating the limitless creative potential of the iPhone 15 Pro Max. The vibrant photos capture breathtaking scenes, from the beauty of summer in Rhode Island to the otherworldly landscapes of Utah. Cook expressed his appreciation, saying, “Thank you for showing me your work.”

    In response, Elon Musk praised the iPhone’s incredible capabilities, stating, “The beauty of iPhone pictures & video is incredible.”

    Cook also shared images of Apple’s new product launches at the Fifth Avenue store in New York, celebrating the latest iPhone 15 family, the first carbon-neutral Apple Watch models, and the latest AirPods. Musk, impressed by these new offerings, exclaimed, “I’m buying one!”

    Musk’s announcement sparked curiosity among social media users. One person wondered about his choice of model and color, while another playfully questioned if he was buying a single unit or the entire company. Some users even joked about Musk promoting Apple products.

    Apple’s latest flagship, the iPhone 15, made headlines after its debut at the company’s Wonderlust event on September 12. It became available to eager customers on September 22, causing long lines at Apple stores worldwide. 

    Billionaire Elon Musk has announced his intention to purchase the iPhone 15, a sentiment shared by many.

    Apple’s CEO, Tim Cook, took to X (formerly Twitter) to share images featuring renowned photographers Stephen Wilkes and Reuben Wu. One image depicts the photographers presenting their work to Cook, demonstrating the limitless creative potential of the iPhone 15 Pro Max. The vibrant photos capture breathtaking scenes, from the beauty of summer in Rhode Island to the otherworldly landscapes of Utah. Cook expressed his appreciation, saying, “Thank you for showing me your work.”

    In response, Elon Musk praised the iPhone’s incredible capabilities, stating, “The beauty of iPhone pictures and video is incredible.”

    Cook also shared images of Apple’s new product launches at the Fifth Avenue store in New York, celebrating the latest iPhone 15 family, the first carbon-neutral Apple Watch models, and the latest AirPods. Musk, impressed by these new offerings, commented, “I’m buying one!”

    Musk’s announcement sparked curiosity among social media users. One person wondered about his choice of model and colour, while another playfully questioned if he was buying a single unit or the entire company. Some users even joked about Musk promoting Apple products.

    Meanwhile, the iPhone 15 series boasts four models: the iPhone 15, the iPhone 15 Plus, the iPhone 15 Pro, and the iPhone 15 Pro Max. The iPhone 15 and iPhone 15 Plus come in three storage options (128GB, 256GB, and 512GB) and five colours (pink, yellow, green, blue, and black).