Tag: inflation

  • NEPRA recommends electricity rate increase of Rs3.28 per unit

    NEPRA recommends electricity rate increase of Rs3.28 per unit

    The National Electric Power Regulatory Authority (NEPRA) has officially proposed to the government an increase in the electricity tariff of Rs3.28 per unit, citing the need for a quarterly adjustment.

    In this proposal, NEPRA is looking to impose an additional financial burden of approximately Rs160 billion on consumers of electricity. According to ARY News, this recommendation has been conveyed to the caretaker federal government through an official summary, outlining the suggested increment of Rs3.28 in electricity rates as part of the fourth-quarter adjustment for the fiscal year 2022–23. 

    The proposed increase, subject to approval by the federal government, would also apply to K-Electric consumers. As a result of this adjustment, power consumers would be required to make additional payments over the next six months, spanning from October 2023 to March 2024. 

    It is worth noting that the proposed surge in power tariffs has incited protests throughout the country, with citizens expressing their displeasure over the considerable rise in electricity costs and the imposition of excessive taxes on electricity bills. In some instances, individuals infuriated by inflated bills have resorted to burning them as a form of protest, while certain political factions have threatened to stage sit-in demonstrations outside K-Electric offices. 

    This unrest surrounding the increased electricity tariffs coincides with Pakistan’s ongoing economic struggles, characterised by financial constraints and an inflation rate hovering around 29 per cent. 

    Furthermore, it is important to highlight that the International Monetary Fund (IMF) has reportedly discouraged Pakistan from offering relief to consumers using over 200 units of electricity on a monthly basis. According to sources, the IMF argued that reducing electricity bills for such consumers would not address the issue of circular debt. 

    Consequently, relief in the form of deferred payments for electricity bills will be exclusively extended to consumers who consistently utilise less than 200 units for six consecutive months. This relief would be rescinded if a consumer’s bill exceeded 200 units within the same timeframe, as per the sources. 

    Caretaker Federal Minister for Energy, Power, and Petroleum, Muhammad Ali, has also announced that the revised electricity tariff will be introduced before October 31. During a press conference held alongside Sindh Governor Kamran Tessori, Minister Ali emphasised the government’s commitment to combating electricity and gas theft through indiscriminate measures. 

    He added that efforts are being made to regulate and potentially lower electricity tariffs, with a goal to supply cost-effective electricity to industries starting on October 31. Muhammad Ali attributed the surge in electricity bills to electricity theft and the increased price of the US dollar. 

    While acknowledging the challenges of amending previous agreements, the minister pledged that the government would explore solutions within the framework of existing arrangements. He also expressed the government’s commitment to promoting solar energy despite the lack of reductions in solar equipment prices, outlining plans to devise a strategy for the promotion of solarization. 

  • Pakistani rupee gains value, now at Rs292.78 per US dollar

    Pakistani rupee gains value, now at Rs292.78 per US dollar

    The Pakistani rupee’s ascent against the US dollar persisted for the 12th consecutive session in the inter-bank market on Thursday, registering a 0.38 per cent gain.

    According to the State Bank of Pakistan (SBP), the rupee settled at 292.78, marking a notable increase of Rs1.1 within the inter-bank market. Just the day before, on Wednesday, the rupee had exhibited a similar upward trend, appreciating by 0.35 per cent and settling at 293.88.

    This remarkable turnaround in the rupee’s value follows a recent period of decline, during which it hit a record low of 307.1 in the inter-bank market on September 5.

    The transformation in its fortune can be attributed to a series of structural reforms introduced by the State Bank of Pakistan (SBP) within the Exchange Companies’ (ECs) sector, along with various administrative measures implemented by authorities to combat currency smuggling and hoarding.

    On the global stage, the US dollar reached new heights on Thursday, notably against the yen, marking its strongest position since November.

    This surge in the dollar’s strength followed a hawkish stance taken by the US Federal Reserve at its recent monetary policy meeting, where it opted to maintain interest rates within the 5.25 per cent–5.50 per cent range.

    The Fed’s decision reflected a growing confidence among officials that their assertive monetary policy approach can effectively combat inflation without causing significant economic disruption or substantial job losses.

    Conversely, oil prices experienced a decline on Thursday, following the previous session’s significant drop, as expectations of US interest rate hikes overshadowed the impact of reduced US crude stockpiles.

  • PKR gains for 11th straight session, reaches Rs293.88 per dollar

    PKR gains for 11th straight session, reaches Rs293.88 per dollar

    The Pakistani rupee continued its upward trend against the US dollar, marking the 11th consecutive session of appreciation in the interbank market on Wednesday.

    According to the State Bank of Pakistan (SBP), the rupee closed at 293.88, reflecting a 0.35 per cent increase. This follows a 0.36 per cent appreciation on Tuesday, when it settled at 294.90.

    Recent days have seen a remarkable strengthening of the rupee, with a nearly 4.5 per cent gain since hitting a record low of 307.1 in the inter-bank market on September 5. 

    This turnaround is attributed to structural reforms introduced by the State Bank of Pakistan (SBP) in the Exchange Companies’ (ECs) sector and reported efforts to combat smuggling, both of which have provided support to the currency markets.

    Globally, the US dollar remained steady on Wednesday, with a slight softening against the yen, in anticipation of the Federal Reserve’s highly anticipated rate decision later in the day. 

    The US dollar index, which gauges the greenback against a basket of currencies, held steady at 105.13 as traders awaited the Fed’s announcement. Market expectations are that the Fed will likely maintain interest rates in the range of 5.25 per cent to 5.50 per cent, putting the spotlight on the central bank’s forward guidance.

    Meanwhile, oil prices, a significant indicator of currency stability, declined by nearly $1 on Wednesday, ahead of the US Federal Reserve’s interest rate decision. Investors remain uncertain about when peak interest rates will be reached and the potential impact on energy demand. 

    These price drops occurred despite larger-than-expected reductions in US oil stockpiles and weaker US shale output, both of which point to limited crude supply for the remainder of 2023.

  • Significant decline in mobile phone imports in two months

    Significant decline in mobile phone imports in two months

    In the current financial year, the volume of imports of mobile phones was 89.93 million dollars

    In the first two months of the current financial year, a significant decline has been recorded in the imports of mobile phones.

    According to data from the State Bank of Pakistan, the volume of imports of mobile phones in July and August was 8.314 million dollars. In the same period last year, the volume of imports of mobile phones was recorded at 59.31 million dollars.

    The statistics also revealed that during the last month in August, foreign exchange was spent on the import of mobile phones worth 4.979 million dollars, which was 3.33 million dollars in June and 43.66 million dollars in August last year.

    The volume of imports of mobile phones recorded in the current fiscal year was 89.93 million.

  • PM Kakar ordered to appear before court over fuel price increase

    PM Kakar ordered to appear before court over fuel price increase

    Caretaker Prime Minister Anwaar-ul-Haq Kakar has received summons on Tuesday from a civil court in Gujranwala over the recent increase in the prices of petroleum products.

    Judge Mohammad Awais summoned the caretaker PM, secretary petroleum, and Gujranwala commissioner against the hike in petrol prices.

    Advocate Manzoor Qadir filed a petition on September 16 asking for a stay order on the decision of the caretaker government to increase fuel prices. According to the petition, the caretaker prime minister and other officials are “concerned parties” and responsible for the price hike.

    The court has ordered the caretaker prime minister and other officials to appear before the court on September 20 (Wednesday).

    The caretaker government had increased the petrol price by more than Rs 26 and the diesel price by over Rs 17 per litre last week.

    According to the Finance Ministry, the decision was taken due to the increase in oil prices in the international market.

  • 10-day winning streak: Pakistani rupee soars to Rs294.90 against US dollar 

    10-day winning streak: Pakistani rupee soars to Rs294.90 against US dollar 

    In a noteworthy financial trend, the Pakistani rupee continued its upward trajectory against the US dollar, marking its 10th consecutive session of appreciation in the interbank market. On Tuesday, the rupee displayed resilience by appreciating by 0.36 per cent, settling at Rs294.9, following a notable increase of Rs1.05. 

    This positive momentum in the exchange rate follows the previous day’s gain, where the rupee had strengthened by 0.3 per cent to close at Rs295.95. This recent surge in the value of the Pakistani rupee comes in stark contrast to its earlier performance, when it reached an all-time low of Rs307.1 in the interbank market. 

    The shift in fortune can be attributed to government initiatives aimed at reforming the Exchange Companies’ (ECs) sector and cracking down on smuggling activities, both of which have bolstered confidence in the currency markets. 

    This development offers some relief to the prevailing economic outlook, which had been under pressure due to the easing of import restrictions, leading to a widening of the current account deficit in July. 

    Analysts at Topline Securities anticipate that the PKR/USD exchange rate in the inter-bank market will likely remain within the range of Rs320–340 by June 2024, providing a forward-looking perspective on the currency’s performance. 

    Meanwhile, on the global stage, the US dollar experienced a modest decline, albeit remaining close to its six-month peak against major currencies. This movement occurred ahead of the Federal Reserve’s highly anticipated interest rate decision scheduled for Wednesday. 

  • ‘Laggay raho bhai’: Yet another petrol hike has celebrities completely speechless

    ‘Laggay raho bhai’: Yet another petrol hike has celebrities completely speechless

    Friday’s petrol price hike has completely shocked social media. The Ministry of Finance said on X (formerly Twitter) announced that the cost of petrol has risen by Rs 26.02 per litre, coming to Rs331.38 per litre, while high-speed diesel (HSD) saw a hike of Rs17.34 per litre, settling at Rs329.18 per litre.

    Social media users were enraged at the constant price hikes, and celebrities were no exception.

    Singer and actor Ahmed Ali Butt slammed how the public was more concerned with the price of the upcoming iPhone 15 than they were with the ongoing petrol price hike.

    “As a nation we have lost all will to fight against this inflation which is due to corruption and bad economic policies,” he shared on Instagram.

    Veteran comedian and actor Sohail Ahmed took to X, formerly Twitter, to request current government to stop implementing policies that are exploiting common folks.

    Screenwriter Khalil-ul-Rehman Qamar asked all Pakistanis to pray during these difficult times.

    Maybe is mushkil waqt mein thora humor hi chal jata hai? Rabya Kulsoom joked that before any Pakistani, it was the petrol price that reached to the moon!

  • 98 percent of Pakistanis unhappy with country’s direction, survey

    98 percent of Pakistanis unhappy with country’s direction, survey

    Along with the country’s economy, restoring the declining confidence of Pakistani consumers is a big challenge for the caretaker government.

    Apsus Pakistan released the third quarter survey report of Consumer Confidence Index.

    According to the survey report, 98 per cent of Pakistanis are not happy with the country’s direction, while the number of Pakistanis who consider the direction to be correct has come down to merely 2 per cent.

    According to the report, Pakistanis are disappointed with the country’s economy and their own financial situation, 76 per cent of Pakistanis say the country’s economy is weak and 68 per cent say their financial situation is precarious.

    The survey also revealed that 66 per cent of Pakistanis are not optimistic about improvement in the country’s economic conditions, even in the next six months, while 60 per cent see their financial conditions becoming weaker in the future.

  • Pakistani rupee surges 0.43% versus US dollar in inter-bank trading

    Pakistani rupee surges 0.43% versus US dollar in inter-bank trading

    The Pakistani rupee displayed resilience against the US dollar, registering a noteworthy 0.43 per cent appreciation in the early hours of trading within the inter-bank market on Friday.

    By 11:15 am, the rupee had reached a level of 296.68, marking a substantial increase of Rs1.28 in the inter-bank market.

    In contrast, on the previous Wednesday, the rupee had demonstrated a 0.29 per cent appreciation, ultimately settling at 297.96.

    Concurrently, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) opted to maintain the key policy rate at 22 per cent, anticipating a future decline in inflation.

    This decision mirrors the MPC’s stance during the preceding meeting, indicating a consistent status quo in the policy rate despite market expectations of a potential rate hike.

    Internationally, the US dollar maintained relative stability in the Asian market on Friday, slightly retreating from its recent gains against other currencies. This shift coincided with the strengthening of the yuan, driven by positive economic data from China.

    The US dollar’s surge was driven by an unexpected increase of 0.6 per cent in August retail sales, surpassing the estimated 0.2 per cent rise. Additionally, market participants reacted to the European Central Bank’s 25-basis-point hike.

    While the US dollar index currently stands at 105.32, marginally lower than Thursday’s six-month peak of 105.43, it still maintains its overall strength.

    Furthermore, oil prices experienced an uptick on Friday, marking their third consecutive weekly gain. This rise was influenced by better-than-expected Chinese economic data and reports indicating record oil consumption, reinforcing the belief in continued high demand from the world’s second-largest crude consumer.

  • Economic crisis: 95 per cent of Pakistanis fear unemployment

    Economic crisis: 95 per cent of Pakistanis fear unemployment

    In Pakistan, 95 per cent of Pakistanis are worried about the possibility of unemployment, while only 5% are confident of job security.

    Apsus Pakistan’s new survey, based on public opinion, says that there has been a clear increase in the rate of Pakistanis claiming to be unemployed in the last one year.

    According to the survey, 95 per cent of Pakistanis are afraid of unemployment due to the country’s economic conditions, while only 5 percent are confident of job security.

    In the survey, 63 per cent said that they, or someone they know, lost their job; and 99 per cent claimed that it was difficult to buy daily necessities, while 99 per cent were not confident about buying a house or a car.

    About 96 per cent of Pakistanis expressed their inability to save and invest to meet their financial needs in the future.