Despite COVID, PIA shows Recovery

PIA has announced its financial results for FY 2020 as it submitted audited accounts with the Stock Exchange of Pakistan. What has been termed as one of the worst year in decades for the global aviation industry whereby even largest players in the market have obtained huge bailout packages from their respective governments to stay afloat, PIA came up with a noteworthy performance, nearly breaking even on operational losses and reducing its overall losses by 33.7%. According to the airline’s audited financial results for the year 2020, PIA reduced its…

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Inaction may double circular debt, says PM’s aide

LAHORE: The PTI government’s strategy to cap the flow — or the addition of new stock — of the power sector’s circular debt in the next two years has ‘too many variables and moving parts’, which need to be implemented concurrently for the success of the proposed plan. The government has formulated the Circular Debt Management Plan with the assistance of the World Bank as a prior action for the resumption of the IMF’s $6 billion facility. But the plan has not yet been shared with the public even though…

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Russian co intends to setup desalination, waste-to energy project in Karachi

A delegation of Russian businessmen led by Sergey Savchuk, CEO, CC RusWelding called on Board of Investment (BOI) Chairman Atif Bokhari to discuss investment opportunities in Pakistan. The delegation briefed about their projects related to water desalination and conversion of solid waste to energy, which they intend on setting up in Karachi. They also spoke about developing an engineering center & said the company is exploring Public-Private Partnerships and EPC ventures. The delegation was briefed about various incentives offered to enterprises in Special Economic Zones (SEZs) and encouraged them to…

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Pakistan Refinery seeks used complex to upgrade operations

Pakistan Refinery Ltd (PRL) is looking to buy a second-hand refinery complex to upgrade its operations and increase output to help meet rising demand for petroleum products as the country emerges from a pandemic-driven slump. The South Asian country currently has five refineries with a total capacity of 417,000 barrels per day (bpd), according to Pakistan’s 2020 economic survey, the largest of which stands at 150,000 bpd. If the purchase goes ahead PRL could double its capacity to 100,000 bpd. The company this week sought offers to purchase a second-hand…

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Shell holds webinar

Shell Pakistan on Friday organised a webinar to look at the global transformations taking place in the energy sector due to the Covid-19 pandemic and its resultant impact on demand. Head of Shell Scenarios and Vice President of Global Business Environment Jeremy Bentham was the keynote speaker at the event titled “The Energy Transformation Scenarios”. “The COVID-19 pandemic is having a tremendous negative impact on the global landscape. The energy industry and its systems are also faced with unprecedented challenges due to this public-health crisis, as the demand for fuels…

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Pakistan to become 23rd biggest economy by 2040: US intelligence report

Pakistan is set to become the world’s 23rd biggest economy by 2040 based on its predicted gross domestic product (GDP) rank which currently sits at 39th position, according to a United States intelligence report, which is issued every four years. The assessment was included in this year’s Global Trends report by US National Intelligence Council (NIC), which is designed to help policymakers and citizens anticipate the economic, environmental, technological and demographic forces that are likely to shape the world through the next 20 years. “Our intent is to help policymakers and citizens……

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Pakistan needs economic overhaul

Pakistan needs economic transformation by redefining resource allocation and incentive structure, said Federal Minister for Planning, Development and Special Initiatives Asad Umar. Addressing a seminar on Friday, Umar said that deeper understanding and new levers are needed to trigger growth, and the most important function of the government is to provide policy signalling, a framework for competitiveness and supportive regulatory architecture. He urged economists to do more research on the incentive structure in light of the East Asian experience, globalisation and technological advancements, highlighting that the industrial policy tools that…

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Spending on defence, development likely to remain flat till 2026

The country’s development and defence budgets have shrunk significantly over the past two years and spending at a reduced level will remain almost flat in the medium term, that is until 2026, in line with fiscal consolidation measures under the ongoing International Monetary Fund (IMF) programme. Documents released by the IMF after revival of its programme about two weeks ago show that Pakistan’s defence budget has declined from 3 per cent of GDP in FY2017-18 to 2.9pc last year and would drop to 2.8pc of GDP this year. The spending…

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Cut in rate of return of 12 IPPs to help govt save Rs150bn

The National Electric Power Regulatory Authority (Nepra) on Friday approved reduction from 17 to 12-13 per cent in the Return on Equity (RoE), Return on Equity during Construction (RoEDC), Operation & Maintenance and Insurance components of a total of 12 renewable independent power producers (IPPs) under renegotiated tariff contracts with the government. The regulator said the reduction in tariffs will result in estimated savings of around Rs150 billion over the remaining life of the projects. Of the total, seven projects are based on bagasse, three on wind and two solar…

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Promoting Sustainable Construction Sector

A year after the COVID-19 pandemic, the construction sector has shown robust growth and contributed to the revival of economic activity in Pakistan. The housing and real estate activity has taken off on the back of an incentive package and low-cost housing projects announced by the government. Till October last year, a total of 127 projects had been registered at an estimated cost of Rs.63 billion to avail the scheme. In addition, a further 114 projects worth around Rs.109 billion were also under the process of being registered. Economic revival…

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