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Karachiites to pay additional Rs1.52 in surcharge

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1 year ago

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  • Federal cabinet nod is necessary to notify it.
  • It will be collected for a span of one year.
  • Federal government had requested increase.

ISLAMABAD: On the federal government’s request, the National Electric Power Regulatory Authority (Nepra) Thursday approved a hike of Rs1.52  per kWh surcharge for Karachi Electric (KE) consumers, which will translate into a whopping Rs24.50 billion burden on Karachiites.

The sole power supplier of Pakistan’s biggest city — in terms of population — will be able to collect this additional surcharge for a period of a year, from December 2023 to November 2024, according to Nepra.

Although the power regulator has approved the rise in the tariff, the federal cabinet nod is necessary to notify it. The increase will not affect the sole power provider’s lifeline customers.

“In view of the foregoing discussion, response of the MoE, and the fact that Motion has been filed under Section 3 1(8) of the NEPRA Act, which empowers the Federal Government for imposition of surcharge, and is being levied for fulfillment of the financial obligation of the Federal Government, the Authority has decided to allow the subject Motion i.e. recovery of Rs. 1.52/kWh from the consumers of K-Electric, except life line, for a period of twelve months from December 2023 to November 2024,” Nepra said.

The government has taken several measures to hike gas and power tariffs in a bid to curtail the circular debt and satisfy the International Monetary Fund (IMF) for releasing a much-needed loan under a short-term programme.

Pakistan is set to receive $700 million soon, which will boost the economically struggling nation’s foreign reserves and help it pay off debts and in terms of imports.

Expressing the commitment to further hike electricity and gas tariffs, caretaker Minister for Finance Dr Shamshad Akhtar had said that the interim government plans to increase gas prices in January next year to address the circular debt issue.

Addressing a press conference here at the Q Block last week, she said that under the IMF’s Stand-By Agreement Programme (SBA), it has been agreed to reduce costs in the energy sector and restore efficiency in the sector.

“The circular debt of the power and gas sectors has crossed 4 percent of Gross Domestic Product. Urgent action is needed to bring it down. We have started work in this regard and electricity and gas rates have been adjusted accordingly,” she added.

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

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7 days ago

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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.

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

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1 week ago

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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.

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The inflation rate in Pakistan dropped to its lowest level.

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On December 2, core inflation as determined by the Consumer Price Index (CPI) significantly slowed, falling to 4.9% in November 2024 from 7.2 percent in October 2024.

The CPI-based inflation rate for the same month last year (November 2023) was 29.2%, according to PBS data.

Compared to a 1.2% gain in the prior month, it increased by 0.5% month over month in November 2024.

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