Category: Latest News

Karachi: Global oil markets reacted positively to reports of an emerging peace agreement between the United States and Iran, with crude oil prices falling sharply during trading in Asian markets amid expectations of improved energy supply flows and easing geopolitical tensions in the Middle East. Brent crude futures dropped by 3.8 percent to $84.02 per barrel, while US West Texas Intermediate (WTI) crude declined by 4.1 percent to $81.40 per barrel following reports that Washington and Tehran have reached a framework for a peace agreement aimed at ending months of…

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ISLAMABAD: The government has outlined a series of measures in the Annual Plan 2026-27 aimed at strengthening energy security, expanding strategic fuel reserves, and accelerating the transition toward sustainable power generation. A key policy shift includes the expansion of strategic petroleum reserves, as Pakistan seeks to reduce vulnerability to global supply disruptions. Currently, the country maintains commercial fuel stocks equivalent to around 20 days of demand, but the government plans to increase this buffer to 30–45 days of consumption. Officials noted that in contrast to regional economies such as India,…

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ISLAMABAD: The federal government has earmarked Rs103.086 billion for more than three dozen water and hydropower projects under the Public Sector Development Programme (PSDP) for FY2026-27, significantly lower than the Rs179 billion initially proposed by the Ministry of Planning, Development and Special Initiatives. The revised allocation reflects a cut of over 42 percent, with funds split almost evenly between Rs51.445 billion in rupee cover and Rs51.641 billion for local expenditure, according to budget documents. Hydropower Projects Receive Major Share Out of the total allocation, Rs28.166 billion has been set aside…

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ISLAMABAD: The federal government has reduced power sector subsidies by around 19 percent to Rs830 billion for FY2026-27, down from Rs1.036 trillion in the previous fiscal year, according to budget documents. For FY2025-26, the subsidy allocation was later revised downward to Rs893.136 billion, reflecting ongoing fiscal consolidation efforts in the energy sector. Overall, total subsidies have declined by 8 percent to Rs1.091 trillion in FY2026-27, compared to Rs1.186 trillion in the current fiscal year. Key Changes in Power Sector Subsidies The allocation for Inter-Disco tariff differential subsidy has been slightly…

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ISLAMABAD: The federal government has set an ambitious target of Rs1.677 trillion in Petroleum Levy (PL) collections on petroleum products for FY2026-27, marking an increase of nearly 11.8 percent or Rs178.5 billion over the revised estimate of Rs1.498 trillion for the outgoing fiscal year. Energy sector experts believe the government may further increase the petroleum levy to as much as Rs100 per litre, following the removal of the statutory cap through amendments to the Petroleum Levy Ordinance. Successive governments have increasingly relied on petroleum levy revenues as they are not…

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