Business

IMF nod awaited to provide relief to consumers using up to 300 units in Oct bills

Published

8 months ago

Farwa

Rs13,000 relief to be provided in Rs60,000 to Rs70,000 power bills.
IMF seeks more data from govt regarding suggestions for relief.
Talks underway between IMF, interim govt for electricity relief.

ISLAMABAD: Amid nationwide protests over inflated electricity bills, the caretaker government has reportedly chalked out a plan to provide relief to the power consumers, Geo News has learnt.

Sources told Geo News the interim government has decided to provide relief of up to Rs3,000 to consumers using up to 300 units in October’s electricity bills.

Likewise, the sources said power consumers whose electricity bills are of Rs60,000 to Rs70,000, will benefit from a reduction of Rs13,000.

Meanwhile, the insiders said talks between the International Monetary Fund (IMF) and the caretaker government are underway on the matter of providing relief to the power consumers

Meanwhile, The News reported that the Washington-based global lender has sought more data from the Power Division for its decision on various suggestions forwarded to the Fund seeking relief in the increased bills for August and September.

“We have shared the required data with the Fund people hoping that IMF may today (Monday) come up with its response with a yes or no to the assertions of the Finance and Power Divisions, seeking permission for relief to inflation-stricken people in electricity bills,” some top sources engaged with the IMF told The News.

“At the moment, authorities of both Power and Finance divisions are in hectic talks with the Fund people on the data related to suggested measures for solace in power tariffs and their possible impact on circular debt, cash flow situation and further delays to IPPs, ultimately making the power sector more unsustainable.”

Following continuous protests by citizens and traders, who have taken to the streets against the exorbitant hikes in power bills and addition of taxes, the caretaker Prime Minister Anwaar-ul-Haq Kakar-led setup in Islamabad has been trying to woo the global lender to agree to provide immediate relief for electricity consumers in the cash-strapped country, where people are already battered by skyrocketing inflation.

The interim premier, on August 31, had assured about the likelihood of the Fund nodding to the government’s relief-related proposal — aimed at providing relief to the public — in 48 hours, but it kept waiting to hear back after the deadline elapsed.

The IMF was earlier briefed about the said proposal, under which some portion of the tariff — up to 30% for August and September — would be scaled down and the impact of reduced tariff would be passed on to consumers in six months of the winter season, from October 2023 toMarch 2024 in a staggered manner.

Business

Pakistan’s gold prices are still declining; see the most recent

Published

3 days ago

Farwa

The price of 10-gram gold reduced by Rs943 to settle at Rs207,733, while the price of gold dropped by Rs1200 to close at Rs242,300 a tola, according to the Sindh Sarafa Jewellers Association.

In the global market, the price of the precious metal fell by $10 to $2,349 per ounce, resulting in losses.

At 04:48 GMT, the spot price of gold had dropped by 0.2% to $2,354.77 per ounce. In the previous session, prices reached a two-week high.

American gold futures dropped 0.6% to $2,361.

Spot silver decreased by 0.4% to $28.03 per ounce, while palladium remained steady at $978.03 and platinum decreased by 0.1% to $992.89.

Business

Pakistan and the IMF begin talks for a new loan.

Published

3 days ago

Farwa

Pakistan is requesting a $6 to $8 billion bailout package from the international lender over the next three to four years to address its financial troubles.

A mission team led by Nathan Porter, the IMF’s Mission Chief in Pakistan, is meeting with a Pakistani delegation led by Finance Minister Muhammad Aurangzeb.

According to sources familiar with the situation, Islamabad may face more difficult options, such as raising power and gas bills.

Mr. Aurganzeb informed the IMF team that the country’s economy has improved as a result of the IMF loan package, and Islamabad is ready to sign a new loan programme to further develop.

The IMF mission expressed satisfaction with Islamabad’s efforts to revive the country’s struggling economy.

The IMF praised Pakistan’s economic growth in its staff report earlier this week, but warned that the outlook remains challenging, with very high downside risks.

The country nearly avoided collapse last summer, and its $350 billion economy has stabilized since the end of the last IMF program, with inflation falling to roughly 17% in April from a record high of 38% last May.

Business

Petrol prices are likely to drop significantly beginning May 16.

Published

3 days ago

Farwa

According to sources, the government is set to decrease petrol prices by Rs 14 per litre and diesel prices by Rs 10 on May 16 for the next fortnight’s revision.

Last month, the government reduced the price of fuel and high-speed diesel by Rs5.45 and Rs8.42 per fortnight, respectively.

The current fuel price is Rs288.49 per litre, while the HSD price is Rs281.96.

Meanwhile, oil prices fell further on Monday, as signs of sluggish fuel consumption and comments from U.S. Federal Reserve officials dimmed optimism for interest rate reduction, which may slow growth and reduce fuel demand in the world’s largest economy.

Brent crude prices down 25 cents, or 0.3%, to $82.54 a barrel, while US West Texas Intermediate crude futures fell 19 cents, or 0.2%, to $78.07 per barrel.

Oil prices also declined on signals of poor demand, according to ANZ analysts, as gasoline and distillate inventories in the United States increased in the week before the start of the driving season.

Refiners throughout the world are dealing with falling diesel profitability as new refineries increase supply and warm weather in the northern hemisphere and weak economic activity reduce demand.