Tag: Financial Impact

  • Authorities confiscate smuggled cigarettes worth Rs14 crore

    Authorities confiscate smuggled cigarettes worth Rs14 crore

    In a substantial crackdown on the illicit trade of non-duty-paid cigarettes, the Inland Revenue Enforcement Network (IREN) successfully seized over 679,000 packerites (15,580,000 sticks) of smuggled cigarettes during a two-day operation.

    The confiscated cigarettes, representing various local and foreign brands, including Business Royal, H&P, Platinum, Milano, and Olympic, have an estimated value exceeding PKR 140 Million.

    The enforcement teams targeted local shops in Peshawar, Multan, and Sialkot, where the availability of non-duty paid cigarettes had seen a concerning surge.

    This operation was initiated under the directive of Mir Badshah Khan Wazir, Member (IR-Operations), who emphasized the need to curb the illegal trade of tobacco products.

    Criminal proceedings have been set in motion against both manufacturers and transporters involved in this illicit trade.

    One of the key factors contributing to the rise in the popularity of smuggled cigarettes is the substantial price difference compared to duty-paid alternatives.

    While the cost of a pack of 20 duty-paid cigarettes starts at Rs600, the non-duty paid counterparts can be obtained for as low as Rs200. Some reports even suggest that certain brands are being sold at an even more economical rate.

    The increasing prevalence of non-duty paid cigarettes poses a serious concern, not only in terms of lost revenue for the government but also due to health implications.

    Smokers in Pakistan, attracted by the affordability of these illicit products, have contributed to the surge in sales of non-duty paid cigarettes.

    The IREN’s recent operation sends a clear message that the authorities are actively addressing this issue to safeguard public health and financial interests.

    As investigations unfold, it remains to be seen how this crackdown will impact the illicit trade of cigarettes and discourage individuals from opting for non-duty paid alternatives.

  • Nepra allows passing Rs3.53 per unit burden on power consumers

    Nepra allows passing Rs3.53 per unit burden on power consumers

    National Electric Power Regulatory Authority (Nepra) has provisionally approved distribution companies (Discos) to recover Rs32.7 billion at Rs3.53 per unit from consumers for October 2023.

    Central power purchasing agency highlighted a negative impact of paisa 20 per unit for the Fuel Cost Adjustment (FCA), which rose to Rs3.53 per unit with Rs28.33 billion added in previous adjustments.

    China Power and Thar Coal Block-1 Power also had shares in the adjustments.

    Due to a potential negative impact on consumers, there’s a proposal to stagger the amount in the winter months. Electricity sales decreased by over 10 per cent, reaching 9.63 billion units in October 2023, and a 28 per cent reduction in demand occurred compared to September 2023.

    Concerns were raised about the decline in demand, with Nepra noting alarm if it’s due to reduced industrial consumption.

    In a public hearing, the National Transmission and Despatch Company (NTDC) representative urged a review of the “disallowed mechanism” due to financial difficulties, with Rs42 billion withheld, impacting salaries and pensions.

    In terms of electricity generation, various sources contributed differently in October 2023. Hydel generation was 32.54 per cent, local coal-fired plants were 13.94 per cent, and imported coal was 3.51 per cent.

    Gas-based plants generated 7.35 per cent, RLNG contributed 20.25 per cent, nuclear sources provided 19.08 per cent, and electricity imported from Iran constituted 0.24 per cent.

    Wind and solar energy made up 3.08 per cent and 0.79 per cent, respectively. The total energy generated was 9,572 GWh at Rs8.2605 per unit, with a cost of Rs79.066 billion.

    Discos received 9,253 GWh at Rs11.4277 per unit, totaling Rs105.737 billion in October 2023. The situation raises concerns about the financial viability of power entities and their potential impact on consumers.

  • Here are the latest prices of all Honda cars in Pakistan after reduction

    Here are the latest prices of all Honda cars in Pakistan after reduction

    In a move similar to what Toyota did earlier, Honda Atlas Cars (Pakistan) Limited announced on Wednesday that it is reducing the prices of its vehicles, especially the popular Honda City lineup.

    This decision was made due to the significant strengthening of the Pakistani rupee (PKR) against the US dollar.

    Through an official circular, Honda Pakistan disclosed the updated ex-factory prices for all its car models, reflecting reductions of up to PKR 300,000.

    This substantial price drop is expected to make Honda vehicles more affordable for a broader consumer base.

    After these adjustments, the price of the most budget-friendly Honda car in Pakistan, the City MT 1.2L, now stands at Rs4.699 million following a reduction of Rs100,000.

    Moreover, the top variant, the Aspire CVT 1.5L, is now available for Rs5.849 million after a cut of Rs130,000.

    The most significant price changes have been applied to the popular Honda City lineup, generating excitement among potential buyers.

    Here are the new prices for all Honda cars: