Year: 2022

Despite the federal government’s intervention, commercial banks remain reluctant to increase the credit limits of oil marketing companies (OMCs) spurred by Hascol’s Rs54 billion default, which might trigger a country-wide fuel shortage. The hesitance on part of commercial banks to increase the credit line would certainly serve nothing, but expose the country to massive shortage of POL products, particularly high speed diesel, which was in high demand for harvesting wheat in Punjab and Sindh – the country’s food baskets. “Apart from HASCOL, there are two more OMCs” that are facing…

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With the increase in global prices of oil and gas amid the Russia-Ukraine War, Pakistan could be adversely impacted leading to devaluation of the country’s currency, increasing current account deficit and spiking inflation, say experts. The economic sanctions imposed on Russia may also derail other initiatives underconsideration between Russia and Pakistan as part of ‘Cooperation Roadmap 2021-26’. This will affect delivery and maintenance of transport aircraft and helicopters,modernization and repair of Pakistan railways, construction including up-gradationof industrial facilities in metallurgy, chemical and pharma sectors and powerengineering. It will also have…

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The Economic Coordination Committee (ECC) is all set to approve opening of Revolving Account (RA) of Rs 50 billion for Independent Power Producers (IPPs) established under China Pakistan Economic Corridor (CPEC), well informed sources in Power Division told Business Recorder. The government had approved an amount of Rs 100 billion to clear some overdue receivables of CPEC IPPs – an amount of Rs 50 billion was paid to Chinese power projects, prior to last visit of Prime Minister to China – however, the remaining amount of Rs 50 billion is yet…

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Petroleum product prices have been reduced by the government despite rising international prices, which first crossed $100 per barrel mark and have now approached $130. The issue has been compounded by the Ukraine conflict. In Pakistan, petroleum prices have been and are the lowest in the region. Petroleum product prices have been reduced by Rs10 per litre. Gasoline and diesel prices, after the recent reduction, are at Rs150 per litre and Rs144 per litre. The lower petroleum prices have been possible by reducing the petroleum levy to almost the negligible…

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