Year: 2020

Power sector awaits clarity

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Amid nascent positive economic signs in selective areas, a lag in the implementation of a few supportive initiatives by the government continues to create uncertainties among market players. On the positive side, large-scale manufacturing (LSM) has posted 4.8 per cent growth in the first quarter (July-September) of the current fiscal year. This is driven by textile, mineral and food sectors while selective items in the construction sector have also shown positive signs. That is why the government may like to extend the amnesty scheme for construction to June 2021. Except…

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Petrol, HSD prices slashed by 1.7pc

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The decision was announced by the Ministry of Finance on the recommendations of the Oil and Gas Regulatory Authority (Ogra). According to the decision, the ex-depot price of petrol will come down to Rs100.69 per litre from Rs102.40 — a reduction of Rs1.71 per liter or 1.67pc. The product is mostly used in private transport, small vehicles and two-wheelers. Likewise, the ex-depot price of high speed diesel was set at Rs101.43 per litre — down by Rs1.79 per litre (1.73pc), from its existing rate of Rs103.22. HSD is mostly used…

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Reko Diq: Saga of bliss or bane?

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Not too far from the besieged government, bright stars of the private sector are carefully preparing to dig their heels deeper in the business landscape of Pakistan. In the midst of a historic health crisis, besides negotiating mounting political, economic and diplomatic pressures, Prime Minister Imran Khan’s government is struggling to deal with the embarrassment and hefty fine in a case that Pakistan lost to Tethyan Copper Company (TCC) in the International Centre for Settlement of Investment Disputes (ICSID). National Resource Ltd (NRL), however, has occupied itself with a singular…

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Amendment of PPAs with IPPs: Pakistan to get benefit of Rs11,000 bn in next 30 years

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ISLAMABAD: Pakistan will be having a mammoth monetary benefit of Rs10-11 trillion in the next 25-30 years time, once the PTI government succeeds to get the Power Purchase Agreements (PPAs), having capacity to generate 22,000 MW of electricity, amended with material changes in consultation with the IPPs. So far, the government has signed MoUs with 53 IPPs, which will yield dividends of Rs836 billion in the next 10-12 years and if the government further manages to sign MoUs with more IPPs installed under the 2015 power policy, including the ones…

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A culture of subsidies

Admin

The federal cabinet was briefed that over 2 trillion rupee subsidies, amounting to 4.5 percent of Gross Domestic Product (GDP), were budgeted for the current year. This amount includes grants to different sectors as well as potential losses on account of the energy sector circular debt (estimated at 2.3 trillion rupees at last count), guarantees and non-productive loans. The budget for 2020-21 allocates: (i) 209 billion rupees as total subsidies – an amount that in most fiscal years exceeds the budgeted amount, (ii) grants and transfers of 904 billion rupees…

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