Category: Business

The most important business news, explained in a young, easy to understand way. News that affects young career professionals.

  • Severe gas shortage affect residents of Rawalpindi

    Severe gas shortage affect residents of Rawalpindi

    Since most of Rawalpindi has been without gas for more than a week, the Sui Northern Gas Pipelines Limited (SNGPL) has failed to supply natural gas for domestic users, even during the busiest summer months, and nothing has been done to remedy the situation.

    On Friday, there were long queues of customers waiting to purchase ‘naan’ at exorbitant prices at all ‘tandoors’ and hotels.

    According to Mukhtar Shah, General Manager of Sui Northern Gas Pipelines Limited (SNGPL) for the Rawalpindi region, there is a gas shortage for consumers as a result of the wet weather. In cloudy weather, there is a significant difference between supply and demand, he claimed. He claimed that we are working to make natural gas available everywhere.

    On the other hand, under the condition of anonymity, a few key post officers from SNGPL told The News that the relevant department had cut off natural gas to domestic users in order to benefit nearby businesses and CNG stations. According to the sources, the officers claimed that corrupt officers were profiting greatly from it.

    The LPG vendors were also making money by offering gas in black for an exorbitant Rs300 per kilogramme. The price of LPG gas has also increased by the government and been set at Rs260 per kilogramme, but dealers have been taking full advantage of the current circumstance and selling the commodity in black.

    Gas has not been available for more than a week in the following areas:

    Sher Zaman Colony, Shah Faisal, Shah Khalid, Adiala Road, Qasim Market, Misriyal, Chakra, Satellite Town, Jhanda, Mareer Hasan, Saleha Street, Munawar Colony, Mubarak Lane, Dhoke Juma, New Lalazar, Tahli Mohri, Defence Road, Dhoke Kala Khan, Gulistan Colony, Naik Alam, Dhoke Manga Khan, Kashmir Colony, Gulshanabad, Dhamyal, Quaid-e-Azam Colony, Scheme-III, Dhok Ratta, Arya Mohalla, Tipu Road, Lalkurti, Tench Bhatta, Jan Colony, Dhoke Ratta, Dhok Munshi, Rehmatabad, Dhoke Banaras, Sadiqabad, Muslim Town, Tipu Road, Raheemabad and several other localities.

  • ECC lifts import ban on goods except CBU vehicles, mobiles and appliances

    ECC lifts import ban on goods except CBU vehicles, mobiles and appliances

    The Cabinet’s Economic Coordination Committee (ECC) has decided to lift the import ban on all items other than completely built units (CBUs) of automobile, mobile, and home appliances and to permit the import of 200,000 metric tonnes of wheat.

    The increase in petroleum dealers’ margin from Rs4.90 per litre and Rs4.13 per litre, respectively, to Rs7 per litre was also approved at the meeting chaired by Finance Minister Miftah Ismail.

    The Pakistan Petroleum Dealers Association (PPDA), according to sources, has asked the government for an immediate revision of their margins due to inflation, increases in staff salaries and utility costs, etc.

    They have asked that the margins be revised to Rs6.90 per litre including 15 per cent profit (effectively Rs7.94 per litre). The PPDA then used the media to announce a nationwide strike that would begin on July 18, 2022, with the demand that their margins be increased to 6 per cent of the current selling price (effectively, Rs13.81 per litre for MS and Rs4.16 per litre for HSD).

    On the orders of the prime minister, Musadik Malik, the minister of state for petroleum, and Shahid Khaqan Abbasi, the former minister for petroleum, immediately began communication with the PPDA. On July 16 and 17, 2022, several rounds of negotiations took place in Karachi.

    During negotiations, the Secretary of Petroleum and the Chairman of OGRA both remained present. The PPDA changed its position during negotiations and requested that the margins be raised to Rs9.23 and Rs9.46/litre on MS and HSD, respectively, with immediate effect.

    The negotiating team acknowledged that a dealer with daily sales of less than 200,000 litres cannot operate the business profitably on current margins, and that such losses serve as a motivator for dishonest behaviour.

    After lengthy negotiations, the PPDA finally agreed to margins of Rs7 per litre for both MS and HSD. Based on this agreement and the promise that the revised margins will take effect in August 2022, the PPDA cancelled its call for a strike on July 18, 2022.

    The commitment made to the dealers in November 2021 is still less than this agreed-upon margin (4.4 per cent of sales price).

    The 4th international wheat tender for 2022, which was announced and opened on July 25, has prompted the Ministry of National Food Security and Research to ask for urgent advice. The Trading Corporation of Pakistan (TCP) issued its fourth tender on May 19, 2022, in order to secure 200,000 metric tonnes of imported wheat on a CFR basis, it was announced at the meeting.

    The ECC has approved the direct payment of $11.6 million as compensation/goodwill to the company M/s China Gezhouba Group International Engineering Co. Ltd (CGGC) through the Ministry of Foreign Affairs in response to a proposal from the Ministry of Water Resources for a compensation package for the Chinese casualties at the Dasu Hydro Power project.

    The ECC determined that the compensation/goodwill package’s amount, which is US$ 11.6 million, will remain the same as per the ECC’s earlier decision from January 21, 2022.

    it also approved the proposal to switch both the Fatima Fertilizer (Sheikhupura Plant) and Agritech plants to domestic gas on a summary moved by the Ministry of Industries and Production.

    According to the ministry, RLNG is provided to both SNGPL-based plants on a cost-sharing basis, and the gas rate for running these plants is calculated using a variable contribution margin (VCM).

    Both plants have asked the Ministry to revise the VCM and cap the GST at the price paid by the plants due to rising fuel prices and other factors. The proposal to switch both plants to domestic gas was approved by the ECC following discussion in accordance with the Federal Cabinet’s and ECC’s earlier decision.

    The Ministry of Petroleum, Ministry of Finance, Ministry of Food Security, and Ministry of Industries & Production were further instructed by the ECC to determine the gas price/VCM for the fertilisers The ECC also decided that sales tax could be applied to the actual gas cost that the company is paying.

    The Ministry of Commerce also provided a summary stating that the Cabinet approved the ban on the import of approximately 33 classes/categories of goods in order to reduce the current account deficit (CAD), which was on the rise.

    The decision caused an overall decrease in imports of the prohibited goods of over 69 per cent, or from $399.4 million to $123.9 million. Due to serious concerns expressed by significant trading partners regarding the imposition of the ban and taking into account the fact that the ban has had an impact on supply chains and the domestic retail industry, a review meeting was also held to review the ban after two months.

    The government’s ongoing efforts have resulted in a significant decrease in imports, so the ECC decided to lift the ban on imported goods other than auto, mobile, and home appliance CBUs.

    Additionally, all held-up shipments (aside from those that still fall under the banned category) that arrived at the ports after July 1, 2022, may be cleared with the payment of a 25 per cent surcharge.

  • Toyota announces a massive price increase for all vehicles

    Toyota announces a massive price increase for all vehicles

    Toyota Indus Motor Company (IMC) has announced a massive price increase for all of its completely knocked down (CKD) units.

    Here are the new prices:

    Model Old Price (Rs) New Price (Rs) Total Increase (Rs)
    Toyota Yaris
    1.3 Gli M/T 3,039,000 3,799,000 760,000
    1.3 Gli CVT 3,249,000 4,039,000 790,000
    1.3 ATIV M/T 3,209,000 3,999,000 790,000
    1.3 ATIV CVT 3,379,000 4,209,000 830,000
    1.5 ATIV X M/T 3,449,000 4,309,000 860,000
    1.5 ATIV X CVT 3,659,000 4,569,000 910,000
    Toyota Corolla
    Altis 1.6 M/T 3,909,000 4,899,000 990,000
    Altis 1.6 A/T 4,099,000 5,139,000 1,040,000
    Altis SE 1.6 A/T 4,509,000 5,639,000 1,130,000
    Altis 1.8 CVT 4,499,000 5,679,000 1,180,000
    Altis 1.8 Grande CVT Beige Interior 4,859,000 6,149,000 1,290,000
    Altis 1.8 Grande CVT Black Interior 4,899,000 6,189,000 1,290,000
    Toyota Hilux
    Revo G 2.8 M/T 7,989,000 9,819,000 1,830,000
    Revo G 2.8 A/T 8,379,000 10,299,000 1,920,000
    Revo V 2.8 A/T 9,229,000 11,349,000 2,120,000
    Revo Rocco 9,729,000 11,999,000 2,270,000
    Toyota Fortuner
    Fortuner G A/T 9,959,000 12,489,000 2,530,000
    Fortuner V A/T 11,459,000 14,279,000 2,820,000
    Fortuner Sigma 4 A/T 12,039,000 15,069,000 3,030,000
    Fortuner Legender 12,679,000 15,839,000 3,160,000
    Latest Toyota Price List

    After declining for 10 straight sessions in the interbank market as the country’s foreign exchange reserves continued to shrink, the Pakistani rupee managed to make a small gain of a few paisas against the US dollar.

    Read more: Cheapest new cars in Pakistan

    The ongoing depreciation of the local currency has shown a significant negative impact on the purchasing power of the masses.

  • Lahore Development Authority seals illegal commercial buildings

    Lahore Development Authority seals illegal commercial buildings

    On Thursday, the LDA’s Town Planning Wing carried out a massive operation against unpaid commercial fees and illegal commercial activity throughout the city.

    LDA DG Chaudhry Muhammad Ali Randhawa, who directed the operation, stated that illegal construction and commercial activity would not be tolerated and that action would be taken against them.

    The operation on Thursday involved sealing off illegal and unapproved commercial buildings and business centres in the neighbourhoods of Gulshan Ravi, Ferozepur Road, Multan Road, and LDA-controlled areas.

    According to chief town planner Shakeel Anjum Minhas, legal notices have already been sent to the building owners, directing them to correct the irregularities. He stated that “action will be taken against the buildings if the LDA notices are not implemented” and threatened to seal any structures that did not stop any illegal activity or respond to the notice.

    Director Shafqat Niaz Kang and Chief Town Planner Shakeel Anjum Minhas oversaw the operation. The Enforcement Wing and a large police presence were also present during the operation.

    Two officers were appointed and transferred as a result of LDA DG’s orders. While Assistant Director Muhammad Haris Ali, who was a Deputy Director in the Town Planning Wing, was posted to the Directorate of State Management (Private Housing Schemes) at his own pay scale, Assistant Director Tayyab Ali was appointed in the Directorate of State Management (Private Housing Schemes) at the Chief Town Planner LDA’s discretion.

  • Petrol, diesel prices may increase by Rs10-17 per litre

    Petrol, diesel prices may increase by Rs10-17 per litre

    Despite the fact that the prices for petroleum products and crude oil have remained largely stable, the price of petrol and diesel may increase by Rs10 to Rs17 per litre as of August 1, 2022. The depreciation of the Pakistani rupee is anticipated to be the cause of the upcoming increase.

    According to The News, sources claim that without taking into account the petroleum levy (PL), a price increase of Rs10 for petrol and Rs16–17 for diesel has been estimated. Additionally, Mogas prices have been forecasted at Rs15 per litre and diesel at Rs23 per litre if the government increases the petroleum levy of Rs5 per litre on gasoline.

    The anticipated increase in POL prices has also been calculated without taking into account the ECC’s Thursday approval of an increase in dealers’ margins (DMs) on POL prices of Rs2.10 per litre for gasoline and Rs2.87 per litre for diesel to Rs7 per litre. Petrol’s price could increase by Rs2.10 to Rs17.10 per litre, and diesel’s price could increase by Rs2.87 to Rs25.87 per litre.

    The increase in dealers’ margin will take effect on August 1, 2022, if the federal cabinet approves this decision in the next two days. Industrial sources reported that the US dollar has increased in value by Rs40 so far this month.

    The current exchange rate against the US dollar is Rs239.9427, and the open market price is Rs246.15. However, they did say that the exact price of gasoline and diesel will depend on the exchange rate in force as of today (Friday).

    Since the price of crude oil as of Thursday settled at $99.4 per barrel, according to independent experts, Pakistani consumers won’t be able to benefit from the decrease in price of POL as a result of the rising exchange rate. The government seems more inclined to impose PL on both gasoline and diesel by Rs5 per litre each.

    Liquefied petroleum gas (LPG) costs also rose by Rs10 per kilogramme on Wednesday without an Oil and Gas Regulatory Authority notification (OGRA).

    The chairman of the LPG Distribution Association (LDAP), Irfan Khokhar, told Profit that a household cylinder now costs Rs2,750 after an increase of Rs150, while the cost of a commercial cylinder has increased by Rs450 to Rs10,438 as a result of the unannounced price increase.

  • Apple facing issues in production of iPhone 14

    Apple facing issues in production of iPhone 14

    The release of the iPhone 14 has been eagerly anticipated by Apple fans worldwide, but according to Apple analyst Ming-Chi Kuo, the flagship has a coating crack quality problem.

    The coating crack, according to the analyst, was intended to be used in the phone’s rear cameras, but since it is defective, the tech company has been having production problems.

    This coating crack issue is posing a risk to the tech giant, since it may delay the shipment of the iPhone 14 lineup, which is scheduled to hit stores this fall. Given how important the problem is, Apple has contracted with a new coating supplier; this time, a Taiwanese company called “Largan” will help the tech giant with the iPhone 14’s camera lenses.

    Ming-Chi Kuo recently tweeted that “Apple had transferred about 10 million lens orders from Genius to Largan to avoid affecting iPhone 14 shipments.” This indicates that the tech giant has stopped purchasing lens coating from “Genius” and will do so permanently if that company can’t resolve its coating crack quality problem.

    While highlighting a different issue with the production of the iPhone 14, Kuo wrote that a variety of panel and memory suppliers are experiencing component shortages.

    Despite this, Kuo claimed that the issue will be easily resolved because Apple has brought in a large number of suppliers to fill the component gap.

    “I have learned that recently some iPhone 14 panel and memory suppliers have experienced supply issues”, however indicating little to no impact he added that “other suppliers can fill the supply gap.”

    Apple is doing everything it can to keep up with demand, manufacture, and deliver the iPhone 14 by the projected date despite a number of production issues. Once available, the iPhone 14 is anticipated to outsell the iPhone 13 and surpass its all-time high revenue of $448 billion.

  • Pakistani rupee continues to crash against US dollar, closes near Rs240

    Pakistani rupee continues to crash against US dollar, closes near Rs240

    The Pakistani rupee (PKR) continued to depreciate against the US dollar on Thursday, closing near Rs240, another record low in the inter-bank market as a result of pressure from import payments and the government’s alleged inability to intervene.

    The local currency fell by Rs3.92 (1.63 per cent) or more, or Rs239.94, against the dollar, according to the State Bank of Pakistan (SBP).

    Due to the most recent depreciation, the rupee has fallen more than 13 per cent overall over the last 10 trading sessions. As a result of pressure from ongoing political and economic unrest, the rupee had lost Rs3.09 (1.31 per cent) or more on Wednesday. Its closing value was Rs236.02.

    According to Business Recorder, which cited knowledgeable sources, Finance Minister Miftah Ismail stated on Wednesday that due to the agreement with the International Monetary Fund (IMF), government interventions in the foreign exchange (forex) market cannot be made to control the rate of the US dollar.

    He insisted that the demand for payments against the $7.5 billion import bill from last month is what is putting pressure on the foreign exchange market. He did, however, guarantee that the problem with the US dollar rate and the stress on foreign exchange reserves will be resolved, and that the exchange rate is anticipated to stabilise starting in August.

    In contrast, Pakistan reported a $2,275 million current account deficit (CAD) for the month of June 2022 as opposed to a $1,637 million deficit for the same month in the previous year. The currency is put under more stress as the current account deficit grows.

    The CAD increased by $14.6 billion in a single year, from $2.8 billion in FY21 to $17.4 billion in FY22.

  • Punjab Food Authority raids factory producing fake beverages in Lahore

    Punjab Food Authority raids factory producing fake beverages in Lahore

    The Punjab Food Authority (PFA) raided a factory in Harbanspura, Lahore on Wednesday and seized 1,200 litres of carbonated beverage solution after learning that it manufactured counterfeit carbonated beverages using various well-known brand names.

    In addition, the authority filed a police report (FIR) accusing the factory owner of adulteration and forgery.

    According to PFA Director General Shoaib Khan Jadoon, the factory was subject to enforcement action because it was producing fake drinks devoid of formulas that could cause cancer and ulcer diseases. He claimed that the food authority team seized three cylinders, 1,200 empty bottles, 2,000 lids, and the labelling of numerous well-known beverage brands.

    He claimed that contaminated water, chemicals, loose colours, and artificial sweeteners were being used to make fake drinks.

    During a Monday raid on Lahore-Sheikhupura GT Road Lahore, the Punjab Food Authority (PFA) also halted production at a well-known restaurant due to numerous violations. PFA Director General Shoaib Khan Jadoon oversaw the raid.

    He claimed that the restaurant was subject to action by the PFA for using subpar “Desi Ghee” in the preparation of various food dishes and for maintaining the worst possible levels of hygiene.

  • Government will soon lift the import ban on certain items

    Government will soon lift the import ban on certain items

    The government will lift the import ban on some items in the upcoming weeks, according to Finance Minister Miftah Ismail, but restrictions for cellphones, cars, and home appliances will remain in place.

    He stated that the Commerce Ministry has sent a summary to the federal cabinet for removing restrictions on the import of non-essential and luxury items while speaking at a seminar about the performance of state-owned enterprises (SOEs) here in the federal capital.

    According to the finance minister, the decision was made in light of a lower import bill as a result of restrictions placed on the import of new machinery and raw materials, as well as lower oil prices on the global market. “In the upcoming months, we anticipate a decrease in petroleum product imports. Lower imports will enable Pakistan to conserve its foreign currency, he continued.

    He continued by saying he was hopeful for higher dollar inflows compared to outflows starting in the upcoming month, which would ease pressure on the local currency.

    “Imports in Pakistan as of July 25 were $3.758 billion and our total imports are likely to be $4.824 billion. This number will be less than our exports plus remittance”, he had written on Twitter a day earlier.

    The ban on 30 categories and 83 Customs headings was reportedly requested to be lifted by the finance minister on Tuesday to Prime Minister Shehbaz Sharif.

    He did, however, suggest that the Commerce Ministry keep the ban on completely built units (CBUs), cars, and home appliances in place.

    Speaking with Profit, sources said that between May 19 and July 19, 2021, Pakistan imported CBU automobiles, mobile phones, and home appliances worth Rs399 million. However, after the ban was imposed on May 19, 2022, the trend of importing these items decreased.

    Pakistan imported goods worth Rs123 million between May 19 and July 19, 2022, a difference of Rs276 million compared to the corresponding months of the previous fiscal year.

    It is important to note that the government has outright banned the import of cars, mobile phones, home appliances, dry fruits (aside from those from Afghanistan), crockery, shoes, chandeliers, lights (except energy savers), headphones, and loudspeakers.

    Some items on the list included condiments, doors and window frames, travel bags and suitcases, sanitary ware, fish and frozen fish, preserved fruits, tissue paper, furniture, shampoos, confectionery, luxury mattresses, and sleeping bags, jams and jellies, cornflakes, toiletries, heaters, blowers, sunglasses, kitchenware, aerated water, frozen meat, juices, pasta, ice cream, cigarettes, shaving supplies, luxury leather apparel, and musical instruments.

  • Hyundai sedan prices raised up to Rs830,010 amid rupee devaluation

    Hyundai sedan prices raised up to Rs830,010 amid rupee devaluation

    Hyundai Nishat, like other automakers, has announced a major hike in costs for the Elantra and Sonata variants as a result of the unstable local currency and increased tax rates.

    The updated price for the Hyundai Elantra 2.0 is Rs5,499,000 (including CVT) compared to the old rate of Rs4,998,490 after an increase of Rs500,510. The new price for the Hyundai Elantra 1.6 in Pakistan is Rs5,099,000 (including CVT) compared to the old rate of Rs4,341,9900 after an increase of Rs757,010.

    The revised price of the Hyundai Sonata 2.0 is Rs7,899,000 (with CVT) in Pakistan, up Rs830,010 from the previous rate of Rs7,068,990, while the updated price of the Hyundai Sonata 2.5 is Rs5,499,000 (including CVT), down Rs571,510 from the previous rate of Rs7,927,490.

    Due to local currency devaluation, logistical expenses, tax rate increases, and overall economic uncertainty in the nation, Pakistan’s auto sector is struggling.

    During intraday trade today, the Pakistani Rupee (PKR) lost value against the US Dollar (USD) and fell below the Rs238 mark. The local currency was trading at Rs238.50 in the open market at noon after losing more than Rs5.57 in relation to the dollar.

    Major automakers have been compelled by these problems to lower their production goals in Pakistan. While Honda Atlas Cars Limited (HACL) and Kia Lucky Motor Corporation Limited (KLMCL) are switching to single-shift manufacturing schedules, Toyota Indus Motor Company (IMC) has ceased production for an unknown length of time.