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ARY NEWS

Aleem Malik

  • Pakistan ‘hopes to secure’ fresh IMF loan program in July

    Pakistan ‘hopes to secure’ fresh IMF loan program in July

    ISLAMABAD: The International Monetary Fund (IMF) has expressed satisfaction with the recent measures taken by the Pakistan government, paving the way for a new loan program, ARY News reported on Monday, citing finance ministry sources.

    As per details, Pakistan hopes to secure a new IMF loan program in July as the budget 2024-25 prepared under IMF conditions has also been approved, fulfilling one of the major requirements set by the international lender.

    Sources indicate that the government is continuing to meet other conditions set by the IMF. Work is underway to increase the basic electricity tariff in light of NEPRA’s decision, with the new rates expected to be implemented in July.

    Timely implementation of monthly and quarterly electricity adjustments is also being carried out.

    Read more: IMF says budget 2024 approval ‘not enough’, demands Pakistan to ‘Do more’

    Finance ministry officials anticipate that an agreement for the new loan program will be finalized in July. The new program is expected to range between $6 billion and $8 billion, although the exact amount has yet to be finalized.

    The new loan program with the IMF is projected to span three years.

    The National Assembly (NA) on July 28 approved the Federal Budget for the fiscal year 2024-25 with a total outlay of Rs18,870 billion.

  • Power tariff likely to hike by Rs3.41/unit

    Power tariff likely to hike by Rs3.41/unit

    ISLAMABAD: The power tariff is likely to hike by Rs 3.41 per unit on account of monthly fuel adjustment (MFA), ARY News reported on Thursday.

    As per details, the National Electric Power Regulatory Authority (NEPRA) is set to hear an application by the Central Power Purchasing Agency (CPPA) to hike the power tariff by Rs3.41 per unit.

    The CPPA has filed an application to NEPRA seeking an increase in the electricity tariff, citing an increase in the monthly fuel adjustment for May.

    According to the CPPA, 12.26 billion units of electricity were generated last month, with a production cost of Rs9.12 per unit.

    If the application is approved, the tariff hike would put an additional burden on consumers already struggling with high electricity prices.

    READ: NEPRA approves hike in power tariff

    Following the announcement of Budget 2024-25, the federal government earlier further burdened the inflation hit citizens with Rs 5.72 per unit hike in power tariff.

    The National Electric Power Regulatory Authority (NEPRA) announced that the average electricity tariff will rise to Rs. 35.50 per unit from the current Rs. 29.78.

    Previously, the basic electricity tariff was increased to Rs 7.50 per unit in the current financial year, up from Rs 7.91 per unit in the last fiscal year.

    However the surge in the electricity tariff will be implemented from July 1.

  • Power tariff jacked up by Rs10.1/unit

    Power tariff jacked up by Rs10.1/unit

    KARACHI: In yet another burden on Karachi electricity consumers, the power tariff has jacked up by Rs10.1 per unit, ARY News reported.

    According to the notification issued by NEPRA, the electricity tariff was hiked on account of monthly Fuel charge adjustments (FCA) for July 2023 to March 2024.

    The notification further said, additional charges will be collected from consumers in Karachi from June to September 2024.

    The power consumers have to pay additional Rs2.68/unit in June, Rs3.11/unit in July, Rs3.22/unit in August and Rs1/unit in September.

    However, the increased tariff will not apply to Electric Vehicle Charging Stations (EVCS) and lifeline consumers, the notification said.

    READ: Budget 2024-25: Pakistan likely to unveil relief package for power consumers

    Earlier, the National Electric Power Regulatory Authority (NEPRA) approved an increase of Rs3.3 per unit in the power tariff for the consumers of power distribution companies (DISCOs) except K-electric.

    NEPRA stated that the tariff hike on account of fuel charges adjustment (FCA) shall be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers.

    As a result of the latest hike in electricity prices, consumers will face higher electricity bills in June.

    Prior to this, the National Electric Power Regulatory Authority (Nepra) hiked the per unit price of electricity by Rs3.76 per unit on account of quarterly fuel adjustment.

    The notification issued by the power regulator stated that, the increase will be applicable for three months this year — June, July and August.

    As a result of the hike in electricity prices, consumers will face higher electricity bills, with additional rates of Rs 1.90 per unit in June, Rs 0.93 per unit in July and August.

  • Wheat scandal: PM Shehbaz ‘approves’ probe against four officers

    Wheat scandal: PM Shehbaz ‘approves’ probe against four officers

    ISLAMABAD: Prime Minister (PM) Shehbaz Sharif on Thursday has green signal for a probe against the four officers involved in the wheat import scandal, ARY News reported citing sources.

    According to sources, the Prime Minister has appointed Secretary of Commerce, Muhammad Saleh Ahmad Farooqui, as the inquiry officer to investigate the suspended officials.

    The investigation will be conducted under the Civil Servants (Efficiency and Discipline) Rules, and the suspended officials will be probed for poor planning and negligence.

    Earlier, PM Shehbaz ordered the removal of four officers involved in the wheat import scandal.

    The prime minister directed to suspend four officials of the Ministry of National Food Security over poor planning and negligence.

    READ: Wheat scandal: PM Shehbaz Sharif suspends four officers

    He gave nod for relevant action to be taken against former federal secretary of national food security Muhammad Asif.

    Meanwhile, other officers who are to be suspended include former director general plant protection AD Abid, Food Security Commissioner Dr Wasim and Director Sohail and Punjab Director Food Security Imtiaz Gopang.

    The development came after PM Shehbaz constituted a probe committee led by Secretary Cabinet Division Kamran Ali Afzal, to investigate the wheat scandal.

    What is wheat scandal?

    Pakistan’s wheat sector has been embroiled in a fresh controversy, with the recent import of 3.4 million metric tons of wheat by the caretaker government sparking widespread outrage and allegations of corruption. Despite a surplus of wheat in the country, the import deal has led to a staggering loss of over Rs300 billion to the national exchequer, raising questions about the government’s decision-making process and accountability.

    To Read All the Latest Stories on Wheat Import Scandal; Click here

    The crisis has dealt a severe blow to Pakistan’s farming community, with wheat farmers facing significant losses due to the government’s decision to import wheat at a higher price than the prevailing market rate. The move has led to a glut of wheat in the market, causing prices to plummet and leaving farmers struggling to sell their produce at a fair price.

    The opposition and farming communities have slammed the government’s decision, terming it a “wheat scam” and demanding an immediate inquiry into the matter. The government’s insistence on importing wheat despite a domestic surplus has raised suspicions of corruption and cronyism, with many questioning whose interests the government is serving.

    Read More: Wheat imported in caretaker setup despite sufficient stocks: minister

    An inquiry committee has been established to investigate the scandal and fix responsibility, but the government’s credibility is at stake. The public demands transparency and accountability, and the government must act swiftly to address the concerns of the farming community and the nation at large.

    The Pakistan wheat import scandal is a stark reminder of the need for good governance, transparency, and accountability in decision-making processes. The government must take concrete steps to address the crisis and ensure that such fiascos are not repeated in the future.

  • Pakistan’s electricity shortfall ‘rises’ to 5,500 MW

    Pakistan’s electricity shortfall ‘rises’ to 5,500 MW

    ISLAMABAD: Prolong power outage crippled the country as electricity shortfall climbed to 5,500 megawatts in Pakistan, ARY News reported on Sunday, citing sources.

    According to sources, the major cities are facing up to six hours of load shedding and up to eight hours in rural areas whereas in the areas with high line losses, load shedding of 12 to 14 hours is ongoing.

    The country’s electricity demand is 24,000 megawatts, while the total electricity production is 18,540 megawatts, according to Power Division sources.

    Earlier, an official report of the power ministry stated that the circular debt of Pakistan’s power sector soared to Rs 2,635 billion till January 2024.

    According to a report released by the power division, the hike in circular debt continued despite the massive increase in power tariffs and fuel adjustments.

    READ: Pakistan’s power sector circular debt soars to Rs 2.63tlr

    The circular debt increase was recorded at Rs2,310 billion till June 2023, showing an increase of Rs325 billion during the seven months (January 24).

    The report stated that poor performance and low recoveries by the DISCOs added to the increase in the circular debt.

    It is pertinent to mention here that the International Monetary Fund (IMF) demanded further increase in electricity prices, citing an additional burden of Rs 150 billion on the power sector.

    According to sources, the IMF has asked the Ministry of Energy to increase the electricity tariff from Rs5 to Rs7 per unit in July.

  • Pakistan’s electricity shortfall ‘climbs’ to 6,623 MW

    Pakistan’s electricity shortfall ‘climbs’ to 6,623 MW

    ISLAMABAD: Prolong power outage crippled the country as electricity shortfall climbed to 6,623 megawatts in Pakistan, ARY News reported.

    According to sources, the major cities are facing up to six hours of load shedding and up to eight hours in rural areas whereas in the areas with high line losses, load shedding of 12 to 14 hours is ongoing.

    The country’s electricity demand has reached 25,800 megawatts, while the total electricity production is 19,177 megawatts, according to Power Division sources.

    Earlier, an official report of the power ministry stated that the circular debt of Pakistan’s power sector soared to Rs 2,635 billion till January 2024.

    According to a report released by the power division, the hike in circular debt continued despite the massive increase in power tariffs and fuel adjustments.

    READ: Pakistan’s power sector circular debt soars to Rs 2.63tlr

    The circular debt increase was recorded at Rs2,310 billion till June 2023, showing an increase of Rs325 billion during the seven months (January 24).

    The report stated that poor performance and low recoveries by the DISCOs added to the increase in the circular debt.

    It is pertinent to mention here that the International Monetary Fund (IMF) demanded further increase in electricity prices, citing an additional burden of Rs 150 billion on the power sector.

    According to sources, the IMF has asked the Ministry of Energy to increase the electricity tariff from Rs5 to Rs7 per unit in July.

  • K-Electric seeks Rs 10.69/unit hike in basic power tariff

    K-Electric seeks Rs 10.69/unit hike in basic power tariff

    ISLAMABAD: K-Electric on Friday sought an increase of Rs 10.69 per unit in the basic power tariff, seeking to fix the tariff at Rs 44.69 per unit, ARY News reported.

    As per details, currently, K-Electric’s average basic tariff is Rs 34 per unit. The company has requested a hike under the 7-year Multi-Year Tariff (MYT) framework.

    The EPP component is requested to be fixed at Rs 18.88 per unit, while transmission charges and distribution charges are requested to be Rs 3.48 per unit and Rs 3.84 per unit, respectively.

    Operation and maintenance charges are requested to be fixed at Rs 0.42 per unit, and retail margin is requested to be Rs 0.59 per unit.

    Additionally, K-Electric has requested recovery of lost allocation of Rs 2.88 per unit and working capital of Rs 2.07 per unit.

    Read more: K-Electric finally gets 20-year licence from NEPRA

    NEPRA has sought input from stakeholders on K-Electric’s request within 7 days, and a decision is expected soon. If approved, the new tariff will likely affect millions of electricity consumers in Karachi and surrounding areas.

    Last month, K-Electric sought a whopping Rs18.86/ unit hike in the power tariff on account of monthly Fuel charge adjustments (FCA) of seven months in an application to the National Electric Power Regulatory Authority (NEPRA).

    The sole power provider of the port city has requested to lower the power tariff for two months by Rs0.29/unit.

    In a separate development, it emerged that the federal government has finalised a plan to privatize profit-making power distribution companies (Discos).

    The power companies include Lahore Electric Supply Company (LESCO), Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), Multan Electric Power Company (MEPCO) and Faisalabad Electric Supply Company (FESCO).

  • Power consumers likely to face Rs 5/unit hike in basic tariff

    Power consumers likely to face Rs 5/unit hike in basic tariff

    ISLAMABAD: Power consumers likely to receive another ‘shock’ as the National Electric Power Regulatory Authority (NEPRA) is set to take up CPPA’s plea seeking a hike of Rs5 per unit in the base tariff, ARY News reported.

    Preparations are underway to impose an additional burden of over Rs 310 billion on electricity consumers.

    As per details, the electric power regulator will decide on the Central Power Purchasing Agency (CPPA) plea tomorrow, which is seeking a hike in the base tariff for the FY2024-25.

    CPPA has presented seven scenarios for power purchase prices, with an estimated range of Rs 25.03 to Rs 27.11 per unit.

    After approval, the burden of power purchase prices is expected to reach Rs 3.58 trillion, putting an additional strain on electricity consumers.

    READ: Pakistan’s power sector circular debt soars to Rs 2.63tlr

    Yesterday, it was reported that the power consumers are likely to face a significant increase in tariff of Rs 3.49 per unit on account of fuel charges adjustment (FCA) for April 2024.

    On behalf of power distribution companies (DISCOs), the Central Power Purchasing Agency (CPPA) submitted an application to the National Electric Power Regulatory Authority (NEPRA) seeking an increase in the power tariff by Rs 3.49 per unit.

    Following this request, NEPRA has scheduled a public hearing on May 30, 2024. If approved, this adjustment will be reflected in the consumers’ June bills.

    It is pertinent to mention here that the circular debt of Pakistan’s power sector has soared to Rs 2,635 billion till January 2024.

    According to a report released by the power division, the hike in circular debt continued despite the massive increase in power tariffs and fuel adjustments.

    The circular debt increase was recorded at Rs2,310 billion till June 2023, showing an increase of Rs325 billion during the seven months (January 24).

  • CPPA seeks Rs5/unit hike in basic power tariff

    CPPA seeks Rs5/unit hike in basic power tariff

    ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) will take up the Central Power Purchasing Agency’s (CPPA) petition seeking Rs5 per unit hike in basic power tariff, on May 23.

    The electric power regulator will decide on the Central Power Purchasing Agency, which is seeking a hike in the base tariff for the FY2024-25.

    The increase will put an extra burden of Rs310 billion on the power consumers. Pakistan is currently negotiating with the International Monetary Fund (IMF) for a fresh loan programme.

    According to sources, the international lender has asked Islamabad to further jack up the power and gas prices.

    Read more: IMF ‘demands’ further increase in electricity prices

    The IMF has expressed concern over the failure to achieve the targets, and the power sector’s circular debt is expected to reach Rs 2500 billion by the end of the current financial year. The Ministry of Energy has been unable to control the circular debt, sources said.

    The IMF has also asked the Ministry of Energy to share a plan to increase the power and gas tariffs in the next financial year.

    It is worth noting that the power sector’s circular debt was supposed to be controlled at Rs 2310 billion by the end of the current financial year, but it will exceed the target by Rs 150 billion by June.

  • Wheat scandal: ‘Import continued till second month of elected govt’

    Wheat scandal: ‘Import continued till second month of elected govt’

    ISLAMABAD: A significant quantity of wheat was imported even during the second month of the elected government as 86,800 metric tons of wheat worth over Rs 7 billion were imported in April 2024 alone, ARY News reported citing well-known sources.

    According to the government data available with ARY News, in the first two months of the Pakistan Muslim League-Nawaz (PML-N) led government, approximately 7.78 lakh metric tons of wheat were imported.

    As per official documents, 6.91 lakh metric tons of wheat worth Rs 57.19 billion was imported in the first month of the current government.

    In March 2024, wheat worth over Rs 57.19 billion was imported. The official data revealed that 27.58 lakh metric tons of wheat was imported during the caretaker government.

    To Read All the Latest Stories on Wheat Import Scandal; Click here

    The documents revealed that in the current fiscal year, until February, wheat imports totaled Rs 225.78 billion. Until March, 34.49 lakh metric tons of wheat were imported, worth Rs 282.97 billion.

    What is wheat scandal?

    Pakistan’s wheat sector has been embroiled in a fresh controversy, with the recent import of 3.4 million metric tons of wheat by the caretaker government sparking widespread outrage and allegations of corruption. Despite a surplus of wheat in the country, the import deal has led to a staggering loss of over Rs300 billion to the national exchequer, raising questions about the government’s decision-making process and accountability.

    The crisis has dealt a severe blow to Pakistan’s farming community, with wheat farmers facing significant losses due to the government’s decision to import wheat at a higher price than the prevailing market rate. The move has led to a glut of wheat in the market, causing prices to plummet and leaving farmers struggling to sell their produce at a fair price.

    The opposition and farming communities have slammed the government’s decision, terming it a “wheat scam” and demanding an immediate inquiry into the matter. The government’s insistence on importing wheat despite a domestic surplus has raised suspicions of corruption and cronyism, with many questioning whose interests the government is serving.

    An inquiry committee has been established to investigate the scandal and fix responsibility, but the government’s credibility is at stake. The public demands transparency and accountability, and the government must act swiftly to address the concerns of the farming community and the nation at large.

    The Pakistan wheat import scandal is a stark reminder of the need for good governance, transparency, and accountability in decision-making processes. The government must take concrete steps to address the crisis and ensure that such fiascos are not repeated in the future