Business

Pakistan, Iran to jointly develop gas pipline implementation plan

Published

1 year ago

Farwa

Pakistan renewed its commitment to project: minister.
Iran offers to export more electricity for Gwadar, Chaman.
Both countries decide to explore ways to implement project.

ISLAMABAD: In a positive development, Pakistan and Iran have decided to jointly develop a consensus implementation plan for the Iran-Pakistan (IP) gas pipeline, The News reported Friday.

The decision came after a meeting between two sides in Tehran during which Islamabad had sought relaxation on the Feb-March 2024 deadline to avert the penalty of $18 billion for not laying down a pipeline in its territory.

Iran had asked Pakistan last year to construct a portion of the gas line project in its territory till February-March 2024 or pay a $18 billion penalty.

The negotiations regarding the plan would begin in the next two to three weeks.

Despite this, the Iranian deadline to move international arbitration by September 2024 would remain in the field allowing that much time to explore bilateral avenues.

Energy Minister Muhammad Ali told The News, “We have held constructive talks in Tehran and Pakistan has renewed its commitment to the project.

“We have convinced the neighbouring country of our deficient energy status for which we also have enhanced work on the TAPI gas line project. The Iranian side listened to us carefully and agreed to increase active engagements to enable the IP project.”

During the talks, the Iranian side also offered to export more electricity to Pakistan for Gwadar and Chaman and the former agreed to consider that. Pakistan is already importing 104MW of electricity from Iran.

Ali said in his view Pakistan needs more electricity from Iran for Gwadar, of course on a better negotiated tariff. Though China is setting up an imported coal-based 300MW power plant at Gwadar, it may not fulfil the future needs.

“Once the national grid gets installed at Gwadar, Pakistan can also use more Iranian electricity for its national use,” the minister said.

When the energy minister was asked about the gas project and the issue of $18 billion penalties, he said that both countries have decided to explore ways to implement the project.

The Inter-State Gas Systems of Pakistan and the National Iranian Gas Company signed a revised agreement in September 2019 for the pipeline.

This accord stipulated that Iran would not approach any international court for any delay till 2024 but would be free to do so afterwards. Pakistan could not build the pipeline primarily due to the risk of US sanctions that any project with Iran would invite.

During the talks, the Iranian side was of the view that there could be no US sanctions as it was already exporting gas to Azerbaijan and Turkmenistan, which have not been exposed to any sanctions. The same would hold good for Pakistan in that scenario.

Business

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

Published

4 hours 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.