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Musadik Malik says gas load-shedding inevitable despite extra LNG in January

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  • Country to have additional 200 million MMCFD LNG in Jan-Feb.
  • Govt encourages private sector to invest in new LNG terminals.
  • Planning to import 20,000 tonnes of extra LPG for winters.

ISLAMABAD: Musadik Malik, the Minister of State for Petroleum, on Monday warned that gas loadshdding is inevitable in the coming months despite the arrangement of additional 200 million cubic feet per day (MMCFD) liquefied natural gas (LNG) in January-February 2023, compared to the same period last year.

“Despite the availability of an extra LNG cargo during the upcoming peak winter season, gas load-shedding will be inevitable,” Malik said while briefing the Senate Standing Committee on Petroleum in a meeting held under the chair of Chairman Committee, Senator Mohammad Abdul Qadir.

“In January, Pakistan will have ten LNG cargoes, while in February nine of them will be available for local consumption, while this extra liquefied gas will be imported by state-run companies.”

Malik said the government would encourage the private sector to invest in new LNG terminals.

The state petroleum minister was critical of the supply of gas to the fertiliser-makers at discounted rates.

“The gas costing Rs4,000/MMBTU was being supplied to the fertiliser factories for just Rs250/MMBTU under the pressure of the fertiliser mafia,” the minister said.

A poor common consumer pays $17/MMBTU, while the exporting sector gets the same gas for $9/MMBTU; however, it is provided to the fertiliser-makers at a meagre $1.35-3/MMBTU.

“It is true exports are also important, the gas sector circular debt has ballooned to Rs1,500 billion,” he said adding, “We have to strike a balance between gas prices. We did not buy gas when it was available at $2-2.5/MMBTU. Now it has reached $40/MMBTU.”

Malik also informed the meeting that the country was also planning to import 20,000 tonnes of liquefied petroleum gas (LPG) for winter months.

Speaking on the occasion, PTI’s Senator Saifullah Abro said foreign investment in the gas sector would be highly welcome. “However, we need to be careful lest these investing companies should trap the country into paying them capacity payments like some independent power producers (IPPs),” Senator Abro said.

During the meeting, Abro and Malik traded barbs over mismanagement in the buying of LNG.

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Finance Minister: A “big” IMF program is coming for Pakistan.

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Speaking at the Karachi Stock Exchange ceremony, the Finance Minister announced that meetings with IMF representatives would take place in Washington on April 14 and 15.

He applauded the caretaker government’s effort to bring about economic stability and predicted that the nation’s economy would stabilize with improved economic policies.

Muhammad Aurangzeb emphasized that in order to move the country’s economy toward stabilization, structural reforms must be implemented.

He restated that the nation’s recovery from the economic crisis depends heavily on the stock market. The stock market is, nevertheless, trending upward.

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Pakistan is still classified as a secondary emerging market by the FTSE.

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The nation could perhaps be demoted, according to the worldwide index provider, since its index weight has decreased over the previous few years.

Pakistan’s market capitalization peaked in 2017 at $100 billion, but it fell to $21 billion by 2024, according to a Bloomberg research.

It did, however, state that Pakistan’s standing as a secondary emerging market will remain unchanged due to favorable political changes brought about by the establishment of a stable government.

Bloomberg saw Shehbaz Sharif’s election as prime minister, who is open to reform, as a step in the right direction for the nation struggling financially.

Shehbaz Sharif, the president of the Pakistan Muslim League-Nawaz, was chosen on March 4 to serve as the country’s 24th prime minister.

With 201 votes, PM Shehbaz defeated Omar Ayub Khan of the Sunni Ittehad Council (SIC) by 92 votes.

over the economy, earlier this month, Pakistan and the International Monetary Fund (IMF) came to an agreement at the staff level over the second and last review conducted under Pakistan’s Stand-By Arrangement.

The IMF secured a staff-level agreement with Pakistan on the second and final review of the nation’s stabilization program, which is backed by the IMF’s US$3 billion (SDR2,250 million) SBA authorized, according to the official statement released by an IMF team led by Nathan Porter.

The remaining US$1.1 billion (SDR 828 million) of SBA access will be made available following the IMF Executive Board’s approval of the deal.

It was reported shortly after the February 8 election that the newly elected PML-N-led government intended to apply for a new IMF credit package.

Pakistan is anticipated to pursue a $6–8 billion loan program from the global lender, and the IMF will be contacted right once to begin negotiations for this. The sources went on to say that the IMF would have tighter requirements this time.

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PM Shehbaz Sharif: “A plan to digitize the tax system is underway.”

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In an address to the All Pakistan Newspapers Society delegation in Islamabad today, the prime minister announced that plans were in motion to update the tax collection system.

The prime minister added that efforts are underway to broaden the revenue base and that the Federal Board of Revenue (FBR) is fully digitizing.

He emphasized that the Tax Excellence Awards were a recent initiative by the government to support female entrepreneurs, exporters, and engaged taxpayers.

The government’s priorities, according to the prime minister, are institutional changes, austerity, domestic and external investment, and privatization of government-owned businesses.

Praiseing the media’s contribution to public awareness-raising and good governance, he called on the sector to successfully communicate the benefits of economic stability under SIFC.

Calling fake news a major problem, he emphasized the need for cooperation to combat it. Additionally, he extended an invitation to the press to back Pakistan’s administration in its endeavors for the country’s growth and well-being.

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