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Providing regionally competitive energy by providing subsidy to the exporting sectors was always a challenge; it has now become an even more daunting task. Energy prices are high which would mean a higher requirement of subsidy. As per an agreement with the International Monetary Fund (IMF), however, there is no room for supplementary grants. The textile industry is demanding a commitment of electricity at 9 cent per unit and gas at $9 per mmbtu for the whole fiscal year. ECC (Economic Coordination Committee) of the Cabinet wanted to stick to…

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July 2022 offered a much-needed breather as Pakistan’s LNG imports halved from a month ago at c. $350 million. Recall that LNG imports for both May and June 2022 crossed $750 million, as the government opted to import spot cargoes at record high prices. There was not much on offer for July 2022 as the authorities failed to receive a single bid for spot cargoes. Eight cargoes imported in July 2022 were all under the long-term arrangements by the state-owned Pakistan State Oil. The LNG cost for July 2022 averaged…

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The National Electric Power Regulatory Authority (Nepra) Friday allowed ex-Wapda power distribution companies (XWDISCOs) to make a whopping Rs9.8972 per unit additional collection from the power consumers in their billing month of August. In June they paid less than what was the cost of the power generation, especially from costly imported RLNG [Regasified Liquefied Natural Gas] and oil and devaluation of rupee against US dollar. With the implementation of this increase, the government would collect an additional Rs156 billion in August 2022 that includes monthly fuel charges adjustment (FCA) plus…

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A study “Regional Competitive Energy Tariffs and Textile Sector Competitiveness (Phase II)” was conducted between April and July 2022, which analyzed the regional competitiveness of the textile industry in Pakistan from the perspective of energy and related issues faced by the textile sector through an exhaustive desk research, field surveys, and analyses. The focus of the field work, in June 2022, was on the north and south regions of Punjab — Lahore, Faisalabad, Kasur, Sheikhupura and Multan — and on North Karachi and Lasbella in Sindh and Balochistan, respectively. The…

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The government has formally decided to supply electricity at a rate of 9 cents per kWh and RLNG at $9 per MMBtu without any disparity to zero-rated five export-oriented sectors across the country for existing connections till end-June 2023, The News has learnt. Textiles including jute, leather, carpet, surgical, and sports goods will get the energy at regionally competitive rates to reduce the cost of manufacturing and enhance exports. Around 65 percent of Pakistan’s exports come from these five sectors. The Federal Cabinet approved these rates on August 5, 2022…

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