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ARY NEWS

Aleem Malik

  • ‘IMF-Pakistan to discuss petroleum levy on November 30’

    ‘IMF-Pakistan to discuss petroleum levy on November 30’

    ISLAMABAD: The International Monetary Fund (IMF) team has sought a meeting with Pakistan’s petroleum division officials to ‘review’ steps taken under the petroleum levy to boost revenue, ARY News reported, citing sources.

    Currently, Pakistan is charging Rs60 per litre levy each on petrol and diesel, the sources familiar with the matter said.

    As per details, the meeting is expected to take place on November 30 in which the matters related to petroleum levy and others will come under discussion between the IMF and Pakistan officials.

    Pakistan has collected Rs222 billion in the first four months of the FY2023-24 against Rs47.48 billion during the same period, last year.

    Pakistan is tasked to collect Rs869 billion in petroleum levy during FY2023-24 by the International Monetary Fund to boost the country’s revenues, the sources said.

    Read more: IMF tax experts’ team reaches Pakistan

    It is to be noted that a team of IMF tax experts reached Pakistan on Monday.

    Sources said that the technical experts’ delegation will hold consultations with the Federal Board of Revenue (FBR) over the taxation policy for about one week.

    The delegation will suggest measures to the FBR for amendments in the tax policy, sources said. “Introducing amendments in the tax policy aimed at expanding the tax net and collecting maximum tax,” sources said.

  • Pakistan finalises strategy to propel exports to $100bn

    Pakistan finalises strategy to propel exports to $100bn

    ISLAMABAD: Following the establishment of two powerful advisory council, the Ministry of Commerce has finalised a strategy to propel Pakistan’s exports to the ambitious target of $100 billion, ARY News reported on Friday, citing sources.

    Sources told ARY News that it has been proposed to enhance access of Pakistani products in the Chinses markets – which according to the advisory councils will boost the country’s exports.

    It has also been proposed to promote textile and non-textile products in Chinese markets, sources added.

    In this regard, informed sources claimed that a delegation of Pakistani industrialists – led by Minister of Commerce, Dr Gohar Ejaz – will visit China. The delegation will discuss its strategy to boost Pakistani exports with Chinese investors, they added.

    Sources added that a delegation of the heads of the country’s largest companies will also travel to China.

    Read More: Pakistan’s first ‘Industrial Policy’ in the offing

    It is pertinent to mention here that the Ministry of Commerce established two powerful export advisory councils to devise a strategy for the promotion of textile and non-textile products.

    The councils were tasked with developing sector-specific strategies to increase export volumes. These councils are set to formulate policy guidelines within an eight-week time frame, which will then be presented to the Special Investment Facilitation Council (SIFC) for approval.

    This initiative is a key component of the overarching strategy aimed at achieving the ambitious export target of $100 billion.

    The Export Advisory Council for Textile is comprised of notable members from the private sector, including individuals from Interloop Holdings, Alkaram Textiles, Soorty Textiles, US Group, Artistic Milliners, Kohinoor Mills, Sapphire Textile Mills, Kamal Textile Mills, and TBC company.

    Similarly, the Export Advisory Council for Non-Textile products includes members from the private sector representing Guard Agricultural Research and Services, Iftikhar Ahmed & Co, K&N’s Foods (Pvt) Ltd, Malik Sports, Hanif Jewelry & Watches, Hirani Pharmaceuticals, Tufail Chemicals, Amicas Enterprises, Infinity Engineering Pvt Ltd, Popular Marble Industries, Leather Ltd, Getron (Industries) Ltd, Ghani Glass, and Garibsons (Pvt) Ltd.

  • Power consumers to bear Rs12b burden due to DISCOs ‘quota violation’

    Power consumers to bear Rs12b burden due to DISCOs ‘quota violation’

    ISLAMABAD: The power consumers will bear an additional financial burden of Rs12 billion due to ‘quota violations’ of the electricity distribution companies (DISCOs), ARY News reported on Thursday.

    The documents obtained by ARY News showed that DISCOs withdrew less electricity by up to 47.28% from their fixed quota from July 2023 to September 2023.

    The ‘quota violations’ by the DISCOs would increase an additional financial burden worth Rs12 billion on the power consumers.

    Related: NEPRA jacks up electricity tariff

    The Islamabad Electric Supply Company (IESCO) withdrew 2.04% less electricity from July to September 2023, Lahore Electric Supply Company (LESCO) 7.87%, Gujranwala Electric Power Company (GEPCO) 7.86%, Faisalabad Electric Supply Company (FESCO) 14.65%, Multan Electric Power Company (MEPCO) 13.71%, Kanpur Electricity Supply Company (KESCO) 5.57%, Peshawar Electric Supply Company (PESCO) 1.07%, Hyderabad Electric Supply Company (HESCO) 18.6%, Sukkur Electric Power Company (SEPCO) 5.69% and Tribal Electric Supply Company (TESCO) 47.28%.

    Bureaucrats deputation to DISCOs

    In September, the officers from the Establishment Division had been deputed to power distribution companies (DISCOs) by the caretaker government for the first time in Pakistan.

    The caretaker government approved the deputation of officers from the Establishment Division to the DISCOs for the first time in Pakistan.

    A notification was also issued by the caretaker federal government regarding the deputation of 10 Grade-17 officers in different power distribution companies under the administration of the Water & Power Development Authority (WAPDA).

    Related: Pakistan ends free electricity units for officers

    According to the notification, Owais Arshad Bhatti from the Centre was deputed to Islamabad Electric Supply Company (IESCO), Rafia Qayyum from Punjab government to Faisalabad Electric Supply Company (FESCO), Muhammad Murtaza from Punjab to Multan Electric Power Company (MEPCO), Maham Mushtaq from Punjab to Gujranwala Electric Power Company (GEPCO), Sarah Loni from Punjab to Lahore Electric Supply Company (LESCO), Muhammad Shehzad Ahmed from Sindh government to Hyderabad Electric Supply Company (HESCO), Muhammad Ahmed Ali from Sindh to Sukkur Electric Power Company (SEPCO), Hamoodur Rehman from Sindh to Kanpur Electricity Supply Company (KESCO), Muhammad Hashim Azeem from Khyber Pakhtunkhwa (KP) government to Peshawar Electric Supply Company (PESCO) and Muhammad Masood Chaudhry from KP to Tribal Electric Supply Company (TESCO).

  • IMF-Pakistan policy level talks begin tomorrow

    IMF-Pakistan policy level talks begin tomorrow

    ISLAMABAD: The International Monetary Fund (IMF) and Pakistan policy-level talks will begin tomorrow, ARY News reported citing sources.

    According to sources, the IMF will brief Pakistan on their suggestions and demands whereas the ‘do more’ demands will also be tabled during the meeting.

    Sources said that it is expected that the IMF’s point of view on the foreign exchange rate will also revealed and the monetary fund is likely to raise questions on the foreign financing needs.

    Yesterday, the International Monetary Fund (IMF) review mission expressed satisfaction with the measures taken by the government of Pakistan to curb the smuggling and hoarding of foreign currency.

    Related: IMF ‘satisfied’ with Pakistan’s measures to curb currency smuggling

    Sources told ARY News that the IMF mission, visiting Pakistan, held talks with officials reviewed the issues related to exchange rate management of Pakistani Rupee against US dollar.

    The review mission was briefed on measures taken to curb smuggling and hoarding of US dollars and against organized criminal cartels involved in such activities.

    During the meeting, IMF expressed satisfaction over the measures, including crackdown against illegal currency dealers.

    Pakistan has also agreed with the IMF to share the data of the tax evaders with the help of FBR, banks and NADRA, to improve tax collection.

    The agreement was reportedly reached during policy review talks between the IMF officials and Pakistan to release a $700 million loan tranche under the Standby Agreement (SBA).

    It is pertinent to mention here that the caretaker government and the International Monetary Fund (IMF) kicked off the much-awaited loan review talks.

  • Pakistan ‘agrees’ to share tax evaders’ data with IMF

    Pakistan ‘agrees’ to share tax evaders’ data with IMF

    ISLAMABAD: Pakistan has agreed with the International Monetary Fund (IMF) to share the data of the tax evaders with the help of FBR, banks and NADRA, to improve the collection, ARY News reported on Wednesday, citing well-placed sources in the finance ministry. 

    The agreement was reportedly reached during policy review talks between the IMF officials and Pakistan to release a $700 million loan tranche under SBA.

    Sources said during the meeting with the international lender, the Federal Board of Revenue, banks, and the National Database and Registration Authority (NADRA) officials agreed upon the data sharing of the citizens evading taxes.

    Pakistan briefed the IMF delegation that a detailed report of customers’ data will be dispatched in January 2024, the sources said.

    The meeting also discussed improving the tax collection system and administration.

    Read more: IMF ‘satisfied’ with Pakistan’s economic progress

    Earlier, the sources said that IMF expressed satisfaction with the financial deficit and economic growth rate data provided by Pakistan during talks.

    A briefing by the Ministry of Finance stated that on September 23, the volume of the economy reached Rs500,817 billion، and the financial deficit was reduced from the target of Rs 2525 billion to Rs964 billion۔

    The Pakistani officials told the IMF officials that from July to September, the federation spent only Rs40 billion in the development budget, which the international lender appreciated.

  • IMF ‘satisfied’ with Pakistan’s economic progress

    IMF ‘satisfied’ with Pakistan’s economic progress

    ISLAMABAD: The International Monetary Fund (IMF) has expressed satisfaction with the economic progress made by Pakistan, to secure a $700 million loan tranche under SBA, ARY News reported on Tuesday, citing well-placed sources.

    According to sources, the Ministry of Finance presented the economic data from July to September of the current fiscal year, which was agreed by the international lender.

    Sources say the IMF has expressed satisfaction with the financial deficit and economic growth rate data provided by Pakistan during talks.

    A briefing by the Ministry of Finance stated that on September 23, the volume of the economy reached Rs500,817 billion، and the financial deficit was reduced from the target of Rs 2525 billion to Rs964 billion۔

    Read more: IMF ‘seeks’ report on state-owned firms’ losses from Pakistan

    The Pakistani officials told the IMF officials that from July to September, the federation spent only Rs40 billion in the development budget, which the international lender appreciated.

    During the meeting, the International Monetary Fund officials also applauded the performance of the Federal Board of Revenue (FBR) for collecting 25% more in taxes.

    The IMF was told that during the July-September period, tax income remained at Rs2,042 billion, while the non-tax income collection was recorded at Rs453 billion.

    According to sources, the IMF has expressed satisfaction with the accumulation of Rs 222 billion in the July-September tax under the petroleum levy and the efforts of Islamabad to contain the current account deficit.

  • Good news for electricity consumers in Karachi

    Good news for electricity consumers in Karachi

    KARACHI: Good news for electricity consumers in Karachi amid soaring inflation, ARY News reported on Monday.

    As per details, K-electric filed a review plea for the production of 350 megawatts of cheap electricity for Karachi electricity consumers.

    A plea was also filed for 200 megawatts neutral hybrid power project at Dhabeji Grid meanwhile NEPRA will hear the pleas on November 14.

    The National Electric Power Regulatory Authority (NEPRA) has allowed K-Electric (KE) to recover Rs3 per unit subsidy availed by industrial consumers.

    Read more: KE allowed to recover Rs3/unit from industrial consumers

    The federal government gave a subsidy of Rs3 per unit to Industrial consumers in Karachi from July to December 2019 under the industrial relief package for peak hours and off-peak hours.

    On October 19, the National Electric Power Regulatory Authority (NEPRA) concluded a public hearing on K-Electric’s Power Acquisition Programme (PAP) for FY2024 to FY2030.

    The key objective of the Power Acquisition Programme is to develop a long-term capacity expansion plan for KE’s service territory and meet the energy demand in a reliable and sustainable manner while maximizing the use of renewable and indigenous resources.

    The Power Acquisition Program was submitted to the regulator in early 2023 and complements KE’s PKR 484 billion Investment Plan to bolster KE’s transmission and distribution infrastructure, a press release issued today read.

  • Bad news for gas consumers after hike in prices

    Bad news for gas consumers after hike in prices

    ISLAMABAD: After the substantial hike in the prices of gas, there is another bad news for gas consumers in Pakistan, ARY News reported.

    As per details, the gas consumers have to pay gas tariff hike from the last four months (July till October).

    The federal government has decided that consumers will have to pay the hiked gas prices from July this year as the total loss of the last four months is Rs 65 billion.

    The hike in gas tariff will be effective from November but it will also include the hiked prices from July to October.

    Read more: Petroleum Division notifies massive hike in gas prices

    Yesterday, the caretaker federal government notified a massive hike in prices of gas which would be taken into effect on November 1.

    The Petroleum Division issued a notification regarding the massive hike in prices for domestic, export, non-export units, CNG, cement, and other sectors.

    However, the prices of gas were not hiked for protected consumers using 25 to 90 cubic meters in a month, however, the fixed charges for this category of consumers were increased from Rs10 to Rs400.

    The notification stated that the prices for non-protected domestic consumers were hiked by over 172%.

    It is pertinent to mention here that the Economic Coordination Committee (ECC) of the Cabinet had approved various summaries including revision of natural gas pricing.

  • Petroleum Division notifies massive hike in gas prices

    Petroleum Division notifies massive hike in gas prices

    ISLAMABAD: The caretaker federal government has notified a massive hike in gas prices which would be taken into effect on November 1, ARY News reported on Monday.

    The Petroleum Division issued a notification regarding the massive hike in gas prices for domestic, export, non-export units, CNG, cement and other sectors.

    However, the gas prices were not hiked for protected consumers using 25 to 90 cubic metres in a month, however, the fixed charges for this category of consumers were increased from Rs10 to Rs400.

    The notification stated that the gas prices for non-protected domestic consumers were hiked by over 172%.

    Related: Federal cabinet defers hike in gas prices

    The gas prices for different slabs of consumers are as follows:

    • Consumers using 25 cubic metres: From Rs200 to Rs300 per mmBtu
    • Consumers using 60 cubic metres: From Rs300 to Rs600 per mmBtu
    • Consumers using 100 cubic metres: From Rs400 to Rs1,000 per mmBtu
    • Consumers using 150 cubic metres: From Rs600 to Rs1,200 per mmBtu
    • Consumers using 200 cubic metres: From Rs800 to Rs1,600 per mmBtu
    • Consumers using 300 cubic metres: From Rs1,100 to Rs3,000 per mmBtu
    • Consumers using 400 cubic metres: From Rs2,000 to Rs3,500 per mmBtu
    • Consumers using over 400 cubic metres: From Rs3,100 to Rs4,000 per mmBtu
    • Tandoors: Rs600 per mmBtu (previous rate is maintained)
    • Power plants: Rs1,050 per mmBtu
    • Cement sector: Rs4,400 per mmBtu
    • CNG sector: Rs3,600 per mmBtu
    • Export units: Rs2,100 per mmBtu
    • Non-export units: Rs2,200 per mmBtu

    ECC’s decision

    On October 23, the Economic Coordination Committee (ECC) of the Cabinet had approved various summaries including revision of natural gas pricing.

    A summary submitted by the Ministry of Energy (Petroleum Division) regarding the revision of the natural gas sale pricing for the FY 2023-24, was also approved as per the tariff schedule submitted by the Ministry, prospectively w.e.f. 1st November 2023, instead of 1st October 2023.

    It was learnt that the federal cabinet is likely to approve a massive hike of up to 193 per cent in the gas tariff.

    The government is likely to increase the local gas tariff up to 173% for non-protected domestic consumers, 136.4% for commercial, 86.4% for export and 117% for the non-export industry.

  • Power companies seek nod to charge Rs22.56b from consumers

    Power companies seek nod to charge Rs22.56b from consumers

    ISLAMABAD: The power distribution companies (DISCOs) sought Nepra’s nod to receive ‘capacity’, ‘use of system’ and other charges worth Rs22.56 billion from electricity consumers excluding K-Electric, ARY News reported on Monday.

    Preparations have been started to increase the financial burden on the electricity consumers as the DISCOs lodged a request to the National Electric Power Regulatory Authority (NEPRA) for ‘capacity’, ‘use of system’ and other charges in the first quarterly adjustment of the current fiscal year.

    The NEPRA will conduct the hearing on DISCOs’ plea on November 14.

    Related: Federal cabinet defers hike in gas prices

    The power companies sought NEPRA’s nod to receive over Rs12.12 billion from consumers in terms of capacity charges and more than Rs10.24 in ‘use of system’ charges.

    According to the NEPRA, the power firms also sought permission to receive operation and maintenance charges worth Rs4.61 billion and Rs6.61 billion in terms of losses.

    Additionally, the firms requested to increase financial burden on Lahore Electric Supply Company (LESCO) consumers worth Rs10.3 billion, Rs4.18 billion on Peshawar Electric Supply Company (PESCO) and Rs5.54 billion on Islamabad Electric Supply Company (IESCO).

    Free electricity units

    Earlier in the month, Pakistan ended free electricity units for the DISCOs and GENCOs officers.

    According to sources, the Cabinet Committee on Energy (CCoE) meeting approved the summary which stated officers of the power division from grades 17 to 21 will get a utility allowance instead of free electricity units.

    Related: Electricity tariff likely to go up again in Pakistan

    Sources added that a monthly utility allowance of Rs15,858 will be to the 17-grade officers of the DISCOs instead of 450 free units.

    Simultaneously, the officers of DISCOs from 18 to 21 will get monthly utility allowance of Rs21,996, Rs37,594, Rs46,922 and Rs55,536, respectively. Meanwhile, 17-grade officers of GENCOs will likely receive a monthly utility allowance of Rs 24,570, sources said.

    Officers of 18 grade will receive Rs 26,460 monthly instead of 700 free electricity units. The GENCOs officers from grades 19 to 21 are proposed to receive monthly utility allowances of Rs42,720, Rs46,992 and Rs55,536, respectively.