Business

Export and non-export sectors in Punjab deprived of gas supply till July 9

Published

3 years ago

Farwa

Govt decides to suspend gas supply to divert more LNG to power sector.
To review decision after Eidul Azha.
Official says gas supply to two sectors may be cut off in Sindh as well.

The supply of gas for the export and non-export sectors in Punjab has been cut off till July 9, The News reported.

The decision to suspend the gas supply has been taken to shift the flow of LNG supply towards the power sector so that more electricity could be generated to mitigate the intensity of hours long power outages currently affecting the entire country.

However, the government will review its decision after Eidul Azha.

In the month of July, the government will have only eight LNG cargoes against the demand of 12 cargoes, showing a deficit of 400mmcfd RLNG.

Pakistan LNG Limited (LNG) failed to obtain any LNG cargo from the international spot market in its three attempts. ENI has also defaulted on its LNG cargo, which had to be delivered on July 8. So the government is on a tightrope and has no space to accommodate the industrial sector, a senior official of the Petroleum Division said.

“It has also been decided to cut off gas supply to the export sector and non-export sector in Sindh for 24 hours from Monday onward as there is a shortage of gas supply in Sui Southern Gas Company system, owing to which the availability of gas has decreased, resulting in low pressure in the system.”

He said that if hydrogenation increases substantially by mid of July, then the government may find itself in a position to restore some gas supply to the export sector.

“The government has shut down the gas supply to captive power plants of export and non-export sector in Punjab,” Executive Director of All Pakistan Textile Mills Association (APTMA) Shahid Sattar confirmed to The News. He added that the textile industry was expecting a massive decline in exports in the month of July in the wake of the non-availability of gas.

According to the notification, the gas supply to the industrial sector, including captive Power Plants, has been closed down till July 9 and after Eidul Azha, the government will review its decision.

The government is facing the biggest challenge of loadshedding across the country. The coal-based power plants including Port Qasim, Sahiwal, and China HUB are not running at the full capacity because of the lower stock of coal. Port Qasim is producing 312 MW, Sahiwal 330 MW against their capacity of 1,320 MW each.

Likewise, the China HUB also has the capacity to generate 1,320 MW but is generating over 600 MW. The government on Thursday generated 20,774 MW against the demand of over 28,000 MW, showing an electricity shortfall of over 7,000 MW. “We have not enough money to purchase coal at $450 per ton. However, we are in talks with the Afghanistan government for purchasing coal under transaction based on Pak rupee.”

Business

Trade ties between Pak-Oman: Both nations decide to activate “Joint Business Council”.

Published

2 days ago

Farwa

Jam Kamal Khan, federal minister for commerce, visited Oman Chamber of Commerce and Industry in Muscat alongside chairman Faisal Abdullah Al Rawas.

To enable closer economic collaboration, both sides decided during the meeting to activate joint Business Council between OCCI and the federation of Pakistan Chambers of Commerce and industry.

Concurrent with the conference, the Embassy of Pakistan arranged a b2b networking event in association with OCCI to gather Omani Businessmen and Pakistani Business Delegates investigating trade prospects.

Speaking on the occasion, Jam Kamal Khan said, “Our present trade figures do not fairly represent the depth of our connection. We can quickly raise the current Trade volume to two or three times its present level by just eliminating logistical and communication barriers.

Business

Despite economic gains, PSX remains strong.

Published

2 days ago

Farwa

Amidst the ongoing negotiations with the International Monetary Fund (IMF) regarding a loan tranche, the Pakistan Stock Exchange (PSX) has resumed its upward trajectory in recent days.

The KSE-100 Index gained 600 points on Friday, the penultimate working day of the business week, and then increased to 115,730 points as traders showed confidence and engaged in trading.

After experiencing fluctuations, the PSX gained strength on Thursday, as the major index surpassed 115,000 points.

The KSE 100-Index closed at 115,094.23 points after gaining 1,009.70 points, or 0.89 percent. 115,247.39 was the intraday high, and 14,429.93 was the lowest.

According to experts, one important factor is Moody’s Ratings’ upgrade of Pakistani banks. Investor confidence has also increased due to the expectation of a positive conclusion from the negotiations with the International Monetary Fund (IMF).

In its assessment, Moody’s stated, “We have shifted our outlook on Pakistan’s banking system from stable to positive to reflect the banks’ resilient financial performance as well as improving macroeconomic conditions from very weak levels a year ago.”

The major index of the Pakistan Stock Exchange (PSX) surpassed 115,000 on Thursday, indicating a surge in the market.

Business

Pakistan resolves to meet benchmarks, and the IMF promises economic help.

Published

2 days ago

Farwa

In the midst of an ongoing economic review, the delegation from the International Monetary Fund (IMF) has promised Pakistan economic cooperation.

In order to assess the delivery of a $1 billion tranche under the $7 billion rescue deal, IMF officials are now in Pakistan.

Today, March 14, marks the completion of the two-week-long economic review and negotiations between the global lender’s representatives and Pakistani authorities.

The team met with Finance Minister Muhammad Aurangzeb at the Ministry of Finance for the last round of negotiations.

The nation’s economic team’s actions and performance were praised by the visiting officials.

Aurangzeb promised the IMF during the conference that all economic goals would be met. He said that as long as the loan program is in place, no goals would be broken.