Business

Petrol, diesel likely to cross Rs300 mark for first time in country’s history

Published

1 year ago

Farwa

At present the inflation rate is at 28%, says energy ministry official.
Govt already under pressure due to power bills, says official.
LC confirmation charges embedded in price of petroleum products.

ISLAMABAD: Amid a recent increase in global oil rates along with depreciation in the value of the rupee against the US dollar — which has impacted the exchange rate impact by Rs12 — Oil and Gas Regulatory Authority (Ogra) is likely to recommend a hike in the petroleum products prices for the next fortnight, The News reported Tuesday.

It is likely that the price of petrol will go up by Rs12 per litre, while diesel will see a rise of Rs14.83 per litre from September 1, 2023.

“This would expose the masses to a further surge in inflation making the lives of the masses more miserable. At present the inflation rate is at 28%,” a senior official of the Energy Ministry told The News.

“However, the government which is already under tremendous pressure because of the countrywide protests over the inflated electricity bills, may reduce the increase or stop it,” the official added.

But doing so would put the caretaker government in a tight spot.

“If the government does that it would be considered that the caretaker government has defaulted on the IMF terms and conditions for its $3 billion standby agreement (SBA) loan under which the government is bound to pass fluctuation in prices of the POL products.

The dollar’s value has reached Rs301.75 in the interbank while it is selling at around Rs319 in the open market,” the official said.

As per the data, over the month of August, petrol prices have already increased by Rs37.50 while diesel has gone up by Rs40 per litre.

“However, the authorities last time worked out the POL prices at the value of the dollar at Rs287 and now they have decided to calculate the prices of POL products from September 1, 2023, at Rs299.

“The big impact of the exchange rate of Rs12 will be reflected in the hike in POL prices.

“The LC confirmation charges that have increased by 10% are also embedded in the price of PSO petroleum products,” the Energy Ministry official told The News.

“The existing price of Mogas stands at Rs290.45 per litre which may go up by Rs12 per litre to Rs Rs302.45 per litre. Likewise, the HSD price which stands at Rs293.40 per litre is also likely to increase by Rs14.83 per litre to Rs308.23 per litre.”

Diesel price is highly inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube wells and threshers and particularly adds to the cost of vegetables and other eatables.

On the other hand, petrol is also mostly used in private transport, small vehicles, rickshaws and two-wheelers and directly affects the budget of middle and lower-middle-class citizens.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

2 days ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.