Business

ECC approves increasing dealers, OMCs margins on petrol, diesel

Published

1 year ago

Farwa

OMCs margin on MS, HSD enhanced by Rs1.87 per litre.
Margins to be determined by Ogra on systematic mechanism.
ECC approves supplementary grant of Rs40 billion for defence services.

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has allowed increasing the petroleum dealers’ and oil marketing companies’ (OMCs) margins from Sept 15 in four fortnightly installments, The News reported.

The decision to increase margins came after the Ministry of Energy (Petroleum Division) submitted a summary to that effect.

The ECC decided to enhance the petroleum dealers’ margins on MS and HSD by Rs1.64 per litre four installments of Rs0.41 per litre, effective from September 15.

Moreover, the OMCs margin on MS and HSD is to be enhanced by Rs1.87 per litre in four installments of Rs0.47 per litre, w.e.f September 15, 2023.

After a detailed discussion, the ECC decided that in order to ensure efficiency and timelines, these margins shall be determined by the Oil and Gas Regulatory Authority (Ogra) on the basis of a systematic mechanism to be developed by Ogra after considering PSO’s operating cost for OMC and dealers.

Meanwhile, the ECC meeting also rejected the Pakistan International Airlines’ (PIA) demand for the provision of Rs22.9 billion and deferment of Rs1.3 billion per month to the Federal Bureau of Revenue (FBR) as well as loans and markup amount till the finalisation of the restructuring plan.

The Ministry of Finance late Wednesday night issued a press release, which did not say anything about the PIA request to issue a carry-over amount of Rs22.9 billion for the last financial year 2022-23, which could not be released.

During the meeting, the Ministry of Aviation submitted a summary on “Financial support for PIACL & its Restructuring”.

The secretary of Aviation gave a detailed briefing to the chair about the financial burdens, liabilities of PIA, and the need for restructuring the organization.

The ECC discussed and reviewed the timelines and costs of the restructuring plan. After detailed discussion and deliberation, it was decided to constitute a separate committee for the assessment of the restructuring plan of PIA.

The ECC also rejected the request for deferment of the payments of Rs1.3 billion per month, which PIA pays to FBR against FED and Rs0.7 billion per month which PIA pays to CAA against embarking charges.

It was also decided that the Finance Division and State Bank of Pakistan would support PIA in tackling its financial challenges after a concrete plan for restructuring the airlines had been finalized and submitted to the satisfaction of the committee.

The ECC also approved a Technical Supplementary Grant of Rs40 billion against various approved projects of defence services and for subsidies and miscellaneous expenditures during FY2023-24. However, the amount will not be released at once, but on case to case basis only as it has already been budgeted for the current fiscal.

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.