Category: Highlights

The federal government is all set to reduce gas tariff up to 35 per cent for the independent power producers (IPPs) operating on low quality gas in a bid to rank these plants in high merit order. This plan will result in putting burden on the consumers to cross-subsidize the gas for power plants and the rate of federal excise duty may also go up. According to the current formula, the government prioritizes the operation of those power plants which operate on cheaper fuel – dedicated gas which is low…

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GWADAR: The planning process for the country’s largest oil city — which will house a $10 billion Aramco Oil Refinery project — in Pakistan’s southwestern Balochistan province is expected to conclude before the end of the year, Pakistani officials said this week.  The proposed mega oil city will be developed at an area of 80,000 acres in Gwadar District for the refining and processing of petroleum products mainly imported from the Gulf region for local and regional needs.   “The planning for the mega oil city which will host Aramco Refinery…

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Experts are cautiously optimistic that recent gains pushing the price of oil to around US$60 a barrel are a sign of good things to come. That’s welcome news after an industry downturn followed by the impacts of the coronavirus torpedoed prices and caused massive layoffs, even company closures. Now, supply cuts by major producers and optimism over the likelihood of increasing demand have driven prices to their highest in more than a year. That rise could continue as Saudi Arabia and OPEC continue supply reductions, the Chinese seek more crude…

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To resolve the issues related to K-Electric’s payables and receivables through arbitration, the KE has submitted its TORs to the federal government and dropped its early demand of “the principle of reciprocity” and has also accepted that arbitration may take place in Pakistan, rather than in London. The Ministry of Energy has yet to respond to the TORs submitted by the KE regarding the arbitration in the issues related to company’s payables and receivables, officials’ source told The Nation. In continuation of the government’s now-desperate efforts to resolve the long-standing…

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KARACHI: Pakistan’s total debt and liabilities increased 9.9 percent to Rs44.9 trillion during the last year, the central bank’s data showed on Thursday, as the government’s fiscal position is stressed amid lower tax revenue collection. The debt and liabilities stood at Rs40.9 trillion till December 2019. Brokerage BMA Capital said the government’s fiscal response is limited by burgeoning debt ratios and narrow tax base with the public debt ratio exceeding 81 percent of GDP. “Fiscal resources look strained but the performance has been good so far,” BMA Capital said in…

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