Business

Farmers deprived of power concessions under IMF diktats

Published

1 year ago

Farwa

Govt plans to collect Rs14bn from agriculture consumers.
Farmers will now pay Rs16.60 as the base rate.
The decision has been implemented immediately.

ISLAMABAD: As a part of the conditions laid forth by the International Monetary Fund (IMF) to unlock more than $1 billion in funding, the coalition government has discontinued the power subsidy given to agriculture consumers.

Prime Minister Shehbaz Sharif announced a Kissan Package for the farmers in October 2022 in the wake of the unprecedented flash floods which was later notified by the National Electric Power Regulatory Authority (NEPRA) in December last year.

However, after providing the subsidy for two months, the government has now discontinued the package with immediate effect owing to the conditions set by the Washington-based lender.

“Federal Cabinet […] has approved the Discontinuation of Kissan Package for base rate relief of Rs3.60/kWh to private agriculture consumers from 1st March 2023,” the notification issued by the Power Division read.

It mentioned that the decision of the federal cabinet was conveyed for immediate implementation and necessary action.

The premier announced the relief package for the growers due to cataclysmic flooding caused by historic monsoon rains that washed away roads, crops, infrastructure and bridges, killing over 1,700 people and affecting more than 33 million, over 15% of the country’s 220 million population.

In concurrence with the announcement, the NEPRA had reduced the power tariff by Rs3.60 per unit at the then-base rate of Rs16.80 after which the farmers were consuming electricity at the base rate of Rs13.

However, after the discontinuation of the facility, agriculture consumers will now pay Rs16.60 in the base rate.

Following the decision, the federal cabinet is expected to collect Rs14 billion by June. It should be noted that the Power Division has written letters in this regard to the K-Electric and other distribution companies.

The division has also informed the Ministry of Finance and the Ministry of Food and Agriculture via letters written in this regard.

The IMF has placed four prior actions including the imposition of a permanent power surcharge of Rs3.39 per unit plus 0.43 paisa (Rs3.82 per unit), market-based exchange rate, hiking discount rate by 150 to 250 basis points and securing confirmation from bilateral partners to meet external financing gap of $7 billion.

On the power surcharge, the Pakistani side argued that the EFF programme was going to expire in June 2023, so how the IMF could demand slapping a permanent surcharge of Rs3.82 per unit.

Business

There are US$13,280.5 million in foreign exchange reserves in Pakistan.

Published

8 hours ago

Farwa

According to a representative for the central bank, as of April 19, 2024, the nation’s total liquid foreign reserves were valued at US$ 13,280.5 million. A loss of US$74 million left the State Bank of Pakistan’s foreign reserves at US$7,981.2 million.

Commercial banks have $5,299.3 million in reserves for Pakistan.

In the week that concluded on April 12, the State Bank of Pakistan’s (SBP) foreign exchange reserves increased by $14.4 million to $8.055 billion.

“In a weekly statement, SBP stated that it has repaid US$ 1 billion in principal and interest on Pakistan’s International Bond, which matures this week.”

But at $13.374 billion, the nation’s total reserves decreased by $68 million. In the same way, commercial banks’ reserves dropped to $5.319 billion, a reduction of $82 million.

Business

NIMA seminar to increase Pakistan’s ship recycling industry’s capacity

Published

8 hours ago

Farwa

According to a release, important players from a range of maritime industries attended the conference to discuss issues facing the shipping sector.

It further stated that the symposium cleared the path for the resurgence of a sustainable future in ship recycling.

Participants in the conference included representatives of the Gadani Ship Breaking Labour Union, PSBA, KS&EW, KPT, PMSA, GEMS, and the federal and Balochistani governments.

Furthermore, global perspectives and ideas were offered by international specialists such as Rabia Razzaque from UN-ILO and Professor Raphael Baumler from the World Maritime University.

The seminar emphasized Pakistan’s capacity to emerge as a pioneer in the field of environmentally friendly ship recycling.

In order to protect the environment and the safety of employees, the participants emphasized the importance of following international standards and regulations.

During his speech, Chief Guest Senator Nisar Ahmed Khoro emphasized the importance of the maritime industry’s resurgence and the crucial necessity for coordinated efforts from all parties involved.

A new age of economic prosperity, worker safety, and environmental responsibility for Pakistan’s maritime industry was called for as he urged the stakeholders to work together on a comprehensive SENSREC program.

Vice Admiral Ahmed Saeed (Retd), the president of NIMA, emphasized the significance of environmental stewardship and safety in ship recycling procedures.

Business

Inflows into the Roshan Digital Account surged to $7.660 billion on March 24.

Published

9 hours ago

Farwa

According to the data, remittance inflows for the month of March totaled US$ 182 million, whereas they were US$ 141 million in February and US$ 142 million in January 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own Non-Resident Pakistan Origin Cards (POCs), can now engage in banking, payment, and investing activities in Pakistan with the help of these accounts, which offer cutting-edge banking solutions.

According to a statement from the State Bank of Pakistan, the number of accounts registered under the program increased by 11,091 from 668,701 accounts in February 2024 to 679,792 accounts in March 2024.

As of March 2024, the central bank reported that foreign nationals of Pakistan have invested US $312 million in Naya Pakistan Certificates, US $528 million in Naya Pakistan Islamic Certificates, and US $31 million in Roshan Equity Investment.

It is important to note that former prime minister Imran Khan introduced the Roshan Digital Account initiative in September 2020 with the goal of giving Pakistanis living abroad access to digital banking services for the first time.