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Govt says gas to be provided only for 8 hours in winters

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1 year ago

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  • Minister says gas would be available only in morning, afternoon and evening in winters.
  • Gas to be available only in morning, afternoon, evening.
  • Minister says govt has ordered LNG to address shortage.
  • 2 cargoes arranged for Dec, govt to also order more for Jan. 

ISLAMABAD: Following a massive hike in gas tariff, Caretaker Energy Minister Muhammad Ali gave the masses another blow when he announced that gas will be available only for 8 hours a day during the winter season, reported The News on Friday.

In a press conference alongside interim Information Minister Murtaza Solangi, the energy minister said that the government would be unable to provide the gas round-the-clock and clarified that it would only be available in morning, afternoon and evening.

He also shared that two LNG cargoes have been arranged for December 2023 to address the shortage as much as possible and that they also plan to order two LNG cargoes for January 2024.

In Pakistan, 30% of the country uses piped gas, while 70%, mostly in rural areas, relies on burning wood and LPG. Of the piped gas users, more than half have been kept insulated from the tariff increase. He also noted that the rich people in urban areas were getting piped gas at 25% of the cost the poor were paying in rural areas for LPG.

The minister said that there are 10 million domestic gas connections and that the government did not hike the gas tariff for 57%, as they were mostly low-income people and were in protected slabs. However, he added that the fixed price of Rs10 had been increased to Rs400/month. Their monthly bill was earlier Rs200 to 900, which will now be Rs600 to 1,300/month. The government is trying it bring it near the price of LPG, he added.

Ali said that 57% of domestic consumers were consuming 31% of the total gas. After the increase, they would pay 11% of the total cost of gas for the domestic sector. 

“3% and the wealthy were consuming 17% and paying 39%. Similarly, the middle slab consumers, which is 39% of the total domestic consumers, consume 52% of gas and pay 49%.” 

He further said the gas tariff for the power sector and tandoors had not been increased. The fertiliser sector had also been insulated from the increase, he said.

In the commercial sector (including hotels and restaurants), the tariff has been equalised at Rs3,600 per mmBtu.

Earlier, there were two types of tariffs for them, one was Rs1,100/mmBtu for local gas consumers (mostly old connections) and Rs3,600/mmBtu for the RLNG-based supplies. The volume of local gas connection was 49% and RLNG was 51%.

Meanwhile, the tariff for the Compressed Natural Gas (CNG) sector has been increased to 80% of the petrol prices. Earlier, the CNG price was almost half of the petrol price. Now it will be 80% of the petrol price.

The minister said the caretaker government had frozen the energy sector circular debt after the increase of power and gas tariffs in accordance with its commitment to the International Monetary Fund (IMF). 

However, he cautioned that in the next two years, the local pipeline gas would be unavailable to households and they would have to shift to liquefied petroleum gas (LPG) and would not lift the embargo on new gas connections.

The minister said the government had stopped the addition of energy sector circular debt and it would not increase from now, and that it had happened for the first time in the last 10 to 15 years. 

He added that Economic Coordination Committee (ECC) had approved an increase in gas tariffs, and now, after the federal cabinet’s approval, the new prices would be implemented.

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Dar chairs the CCOP meeting; Blue World’s bid offer of Rs.10 billion is rejected.

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2 days ago

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The Foreign Minister/Deputy Prime Minister chaired the Cabinet Committee on Privatization meeting.

Other committee members who attended the conference included the Federal Secretaries of several Divisions, the Ministers of Finance and Revenue, Industry and Food, Commerce, Power, and Privatization.

The CCOP took the PC Board’s recommendation into consideration and suggested that Blue World’s bid of 10 billion rupees for the sale of 60% of PIACL’s shares be rejected. The bid was rejected by the CCOP, who chose to follow the PC Board’s advice.

The government’s determination to sell out PIACL through government-to-government or privatization was reaffirmed by the CCOP.

The CCOP was pleased with the Aviation Division’s evaluation of PIACL’s sound financial standing.

Additionally, the CCOP established a committee, chaired by the Minister of State for Finance, to assess potential transaction possibilities for the privatization of the Roosevelt Hotel and the appropriate modes of adoption in light of existing legal rules.

Prior to its subsequent meeting, the CCOP also ordered that all difficulties be resolved and an agreement for the selling of services to an international hotel be concluded.

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The KSE-100 Index has surged by 790 points, resulting in an all-time peak for the stock exchange.

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The benchmark KSE-100 Index increased by 790 points, marking a new all-time high for the Pakistan Stock Exchange (PSX) at 94,982 points.

The record-breaking performance underscores a surge of optimism and investor confidence in the stock market.

As investors responded to favorable economic signals, the market experienced a significant increase of over 500 points in early trading. Later, the KSE-100 Index reached another record level of 94,786 points after adding 594 points to its upward trajectory.

This positive development comes as the State Bank of Pakistan’s (SBP) foreign exchange reserves saw an increase of $84 million, reaching $11.26 billion during the week ending November 8, according to data released by the central bank on Thursday.

This represents an increase of 0.75% from the previous week. In addition, the nation’s total liquid foreign reserves experienced a modest increase, increasing by $33.7 million or 0.21% week-on-week to $15.97 billion.

In contrast, commercial banks’ reserves experienced a decline of $50.3 million or 1.06%, ultimately settling at $4.71 billion.

Furthermore, the economic team of Pakistan has expressed confidence in the discussions with the International Monetary Fund (IMF). Minister of State for Finance Ali Pervaiz Malik, in an exclusive conversation with Samaa TV, claimed talks were moving in a positive direction.

Highlighting improvements in Pakistan’s economic conditions, Malik noted substantial progress over the past six months to a year. He emphasized that Pakistan’s current economic situation has seen significant enhancement, with a reduced current account deficit of only $100 million in the first quarter, a reflection of the government’s strategy to increase remittances and boost exports.

Malik shared that discussions with the IMF are primarily focused on external financing, and while there have been speculations about a potential mini-budget or an increase in the petroleum levy, he clarified that these are currently premature considerations.

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Positive IMF negotiations propel KSE-100 Index above 94,000 points

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3 days ago

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As a result of investors’ optimism about the reported progress in the continuing talks with the International Monetary Fund (IMF), the Pakistan Stock Exchange (PSX) experienced a robust surge.

The benchmark KSE-100 Index of the PSX, which tracks market sentiment, rose 713 points to a new record high of 94,068 points, breaking above the 94,000-point barrier, as the trading session began.

Early in the day, the stock market began its upward trajectory as the KSE-100 Index steadily rose, gaining 574 points to reach 93,932 points. A possible agreement with the International Monetary Fund (IMF) might lead to more fiscal stability and back Pakistan’s economic reforms, which is why investors are so optimistic about the country’s future.

Officials from the Federal Board of Revenue (FBR) informed the International Monetary Fund (IMF) on Wednesday that the government would not be introducing a mini-budget and would instead continue to aim to collect Rs12,970 billion in taxes each year.

In line with continuing discussions with the Fund, FBR sources revealed that petroleum goods will not be subject to the General Sales Tax (GST).

The fact that Pakistan’s tax-to-GDP ratio has increased from 8.8% to 10.3%, a 1.5% gain viewed as a favorable sign of Pakistan’s fiscal policies, has reportedly pleased the IMF, who has voiced satisfaction at Pakistan’s recent economic performance.

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