Tag: interim government

  • Public health concerns mount as essential drug prices increase

    Public health concerns mount as essential drug prices increase

    The interim government announced on Wednesday a price adjustment affecting 146 essential drugs, aligning with the decision made by the federal cabinet on February 1, 2024.

    The Ministry of National Health Services and Regulations issued a notification invoking its authority under Section 36 of the Drug Act 1976, stating that all drugs and biological substances not included in the National Essential Medicines List are exempt from Section 12 of the act in the public interest.

    This decision stems from a federal cabinet meeting chaired by interim Prime Minister Anwaar ul Haq Kakar on February 1, 2024. The move, categorised under hardship, was endorsed based on the recommendation of the National Health Services Ministry. The ministry highlighted the escalating costs of raw materials for drug manufacturing in the global market.

    Officials from the National Health Services Ministry and the Drug Regulatory Authority of Pakistan (DRAP) informed the cabinet that citizens could report medicine unavailability through the pharmaceutical industry regulator’s online portal.

    Primarily targeting vital medications like those for cancer treatment, vaccines, and antibiotics, the decision, communicated through a drug price hike notification, was based on a proposal from the Drug Regulatory Authority, suggesting price increases for 262 medicines. However, the government opted to implement adjustments for 146 medicines crucial to saving lives.

    According to Brecorder, among the medicines listed for price increments, pharmaceutical companies are tasked with adjusting the prices of 116 medications.

    Significantly, the government will now oversee the prices of 464 medicines included in the National Essential Medicines List, ensuring the accessibility of critical medications to the public.

    The government’s decision to deregulate drug prices grants pharmaceutical companies autonomy to adjust prices independently, marking a significant shift in pharmaceutical pricing governance that may reshape the healthcare industry’s landscape.

    As stakeholders assess the implications, concerns regarding affordability and access to life-saving medications emerge. While the government seeks to balance the viability of pharmaceutical companies with public health interests, the consequences of these adjustments warrant scrutiny and debate.

    However, following the cabinet’s approval of the price increase, a shortage of essential drugs was observed in both the wholesale and retail markets. Drug distributors and retailers attribute this to manufacturers awaiting formal notification from the Health Ministry regarding the price increase before releasing supplies to the market.

    This practice has resulted in significant patient suffering, as Mohammad Samiullah Awan, a drug retailer, highlights. While the notification’s issuance may ensure medicine availability, it further burdens already financially strained consumers grappling with price hikes.

  • OGRA approves massive gas tariff hike for SNGPL, SSGC consumers

    OGRA approves massive gas tariff hike for SNGPL, SSGC consumers

    In a move to address the fiscal challenges faced by Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC), the Oil and Gas Regulatory Authority (OGRA) has granted approval for a noteworthy increase in gas tariffs.

    Effective January 1, 2024, consumers of SNGPL will experience a 35.13 per cent surge, while SSGC customers will witness an 8.57 per cent rise.

    This marks the second adjustment in gas prices within the current fiscal year, following a substantial 193 per cent increase announced by OGRA, effective November 1, 2023. The decision to implement these changes is aimed at bridging the Rs98 billion shortfall collectively faced by both gas companies.

    The interim government’s initial projections aimed to collect Rs980 billion, intending to cover the estimated revenue requirements of Rs700 billion for both SNGPL and SSGC.

    The recommended average increase in the prescribed gas price is set at 23 per cent, reaching Rs1,590 per mmbtu, compared to the previous average of Rs1,291 per mmbtu determined on June 2, 2023.

    Specifically, OGRA has outlined a 50 per cent increase (Rs415.11 per mmbtu) for SNGPL, elevating the gas price to Rs1,238.68 per mmbtu, effective July 1, 2023.

    Simultaneously, the gas price for SSGC has been raised by 45 per cent (Rs417.23 per mmbtu) to reach Rs1,350.68 per mmbtu.

    The decision to increase gas prices aligns with the interim government’s commitment to the International Monetary Fund (IMF), with an agreement to announce a raise in gas sale prices by February 18, 2024.

    However, the OGRA Ordinance stipulates that if the government remains unresponsive to OGRA’s notification within 40 days, the determined tariff by the regulator will be automatically enforced.

    The recent approval underscores the ongoing efforts to address financial challenges and ensure the sustainability of the gas sector in Pakistan.

  • Govt implements measures to control onion prices amidst rising inflation

    The interim federal government has reportedly chosen to implement restrictions on onion exports due to the persistent surge in prices, as revealed by sources on Sunday. 

    According to detailed information, the government has introduced advance payments to discourage onion exports and has established a minimum export price. 

    These measures are aimed at preventing an anticipated shortage of onions and curbing further increases in prices.

    In light of escalating inflation, Pakistan witnessed a short-term inflation spike of 43.16 per cent in the week ending December 14, primarily driven by increased costs of pulses, rice, and vegetables. 

    The weekly inflation has now surpassed 41 per cent for the fifth consecutive week, influenced by elevated gas prices and electricity tariffs compared to the previous year.

  • Govt implements major gas price hike to tackle circular debt crisis 

    Govt implements major gas price hike to tackle circular debt crisis 

    On Monday night, the interim government made a significant announcement that will have a profound impact on the nation’s economy.  

    The decision involved a substantial increase in gas prices, set to take effect on November 1st, 2023. 

    Under this new pricing structure, non-protected domestic consumers will experience a substantial surge in their gas tariffs.  

    Specifically, rates will surge by a staggering 173 per cent for this category of consumers. Commercial users will see their gas prices climb by 136.4 per cent, while those in the export and non-export industries will face increases of 91 per cent and 83 per cent, respectively. 

    Further elaborating on the specifics of these changes, the revised monthly charges for protected consumers have been elevated from a mere Rs10 to a more substantial Rs400. For non-protected consumers, the monthly charges have surged from Rs460 to Rs1000, and for higher consumption slabs, the charges have escalated to a maximum of Rs2000. 

    In terms of actual consumption, the price per mmbtu will vary depending on usage. Users consuming up to 0.25 cubic metres will be charged Rs121 per mmbtu.  

    Those using up to 0.5 cubic metres will pay Rs150 per mmbtu; users with a monthly consumption of 0.60 cubic metres will incur charges of Rs200 per mmbtu; and those utilising 0.9 cubic metres will see rates set at Rs250 per mmbtu.  

    The steepest increase is witnessed by individuals using 1 cubic metre of gas per month, as their charges have surged from Rs400 per mmbtu to Rs1,000 per mmbtu. Users with gas consumption up to 1.5 cubic metres, previously paying Rs600 per mmbtu, will now be required to pay Rs1,200 per mmbtu starting from November 1st. 

    The changes in gas pricing also extend to small commercial users, such as local tandoors, who will be paying Rs697 per mmbtu from the aforementioned date.  

    The power sector will experience a range of charges, with rates fluctuating between Rs1,050 and Rs3,890 per mmbtu, while the cement industry will be subject to a consistent rate of Rs4,400 per mmbtu. 

    As for the export industry, gas pricing has been set at Rs2,100 to Rs2,400 per mmbtu, while non-export industries will be required to pay between Rs2,200 and Rs2,500 per mmbtu. These significant adjustments have been made to alleviate the burden on the nation’s economy. 

    The Power Division, in an official statement, justified the increase in gas prices by referencing the recommendations of the Oil and Gas Regulatory Authority, which sought to prevent an additional burden of Rs400 billion on the already burgeoning circular debt.  

  • Winter chills and rising bills: Govt may hike gas tariff by up to 200%

    Winter chills and rising bills: Govt may hike gas tariff by up to 200%

    The interim government is in the process of preparing a significant gas tariff increase proposal, set to be presented to the Economic Coordination Committee (ECC) tomorrow. 

    According to ARY News, the Petroleum Division will lay out a plan for a 200 per cent hike in gas tariffs for various consumer categories, with domestic consumers facing a 172 per cent increase in anticipation of the upcoming winter season.

    The proposal encompasses a broad spectrum of changes, including a 200 per cent price hike for different consumer categories and a staggering 3,900 per cent surge in monthly fixed charges for protected consumers, soaring from Rs10 to Rs400.

     For non-protected consumers, the plan suggests an increment of Rs100 for those using 0.25 cubic metres per month, Rs300 per mmBtu for those using 0.60 cubic metres, and up to Rs1,900 per mmBtu for consumers utilising 300 cubic metres per month.

    Export units may see their rates rise from Rs950 to Rs2,050 per mmBtu, while non-export units might face an increase from Rs1,400 to Rs2,600 per mmBtu. The CNG sector could experience a hike of Rs2,595 per mmBtu.

    For other industries, the suggested rates are Rs2,900 per mmBtu for the cement sector and Rs4,400 per mmBtu for the CNG sector. However, the current rates for power generation units and tandoors are expected to remain unchanged.

    Sources indicate that the caretaker finance minister has called for an ECC session at 4:00 pm on Monday, proposing the implementation of these gas tariff adjustments starting on October 1. 

    Earlier, there were reports from within the finance ministry that the International Monetary Fund (IMF) had urged Pakistan to promptly increase gas tariffs by 100 per cent to address the losses and circular debt in the country’s gas sector.

    The IMF, during a virtual meeting with Pakistan’s finance ministry officials, expressed concerns over the failure to raise gas tariffs on July 1, emphasising that this was a violation of their standby agreement. 

    The IMF further advised the recovery of a Rs46 billion loss incurred by gas companies from July to September. It should be noted that caretaker Finance Minister Dr Shamshad Akhtar is currently in China.

  • Petrol price reduced by Rs8 to Rs323.38 per litre for two weeks

    Petrol price reduced by Rs8 to Rs323.38 per litre for two weeks

    In a noteworthy development aimed at alleviating concerns over inflation, the interim government has decided to implement a reduction in the prices of petroleum products for the upcoming two weeks.  

    As of October 1, 2023, the price of petrol will see a substantial decrease of Rs8 per litre, resulting in a new rate of Rs323.38. Additionally, a price reduction of Rs11 per litre has been announced for diesel, bringing the revised rate to Rs318.18 per litre. 

    This decision has been prompted by the strengthening of the Pakistani rupee and a global decrease in petroleum prices, as indicated by the Ministry of Finance in an official statement.  

    The Ministry stated, “In the wake of variations in international prices of petroleum products and the improvement in the exchange rate, the Government of Pakistan has decided to revise the consumer prices of petroleum products.” 

    Furthermore, the government has taken steps to lower the cost of kerosene oil by Rs7.53 per litre, establishing a new rate of 237.28, while light diesel oil will witness a reduction of Rs7.77 per litre, resulting in a price of 212.45 per litre. 

  • Govt raises petrol price by Rs26.02 per litre, diesel by Rs17

    On Friday night, the interim government implemented a significant adjustment in fuel prices. The cost of petrol rose by Rs26.02 per litre, reaching a new rate of Rs331.38 per litre, while high-speed diesel (HSD) saw an increase of Rs17.34 per litre, settling at Rs329.18 per litre.

    The Ministry of Finance made this announcement via a post on X (formerly known as Twitter) after midnight.

    This decision was driven by the continuous upward trajectory of petroleum prices in the global market. It’s important to note that there were no alterations made to the rates of kerosene or light diesel oil.

    This latest price surge closely follows a substantial hike on September 1, when the interim government elevated fuel prices by up to Rs18 per litre. This increase was preceded by similar adjustments made by the interim government on August 15.

    The rationale behind these price adjustments lies in adherence to existing tax structures and import parity prices. These changes were primarily necessitated by currency fluctuations and a slight uptick in international oil prices.

  • IMF’s ‘yes or no’ decision nears on relief for electricity bills

    IMF’s ‘yes or no’ decision nears on relief for electricity bills

    In the midst of extensive protests regarding soaring electricity charges, the interim government has reportedly devised a strategy aimed at alleviating the financial burden on electricity consumers in the country.  

    According to Geo News, the interim government is preparing a relief package that will grant up to Rs3,000 in relief to customers who use up to 300 units of electricity in their October bills. Furthermore, those facing electricity bills between Rs60,000 and Rs70,000 stand to benefit from a significant reduction of Rs13,000. 

    Simultaneously, discussions between the International Monetary Fund (IMF) and the interim government are ongoing, focusing on providing relief to electricity consumers. 

    In a separate report by The News, it’s revealed that the IMF, headquartered in Washington, has requested additional data from the Power Division to inform its decision regarding various proposals to address the impact of high bills in 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,” shared sources involved in discussions with the IMF. 

    Currently, officials from both the Power and Finance divisions are engaged in intensive discussions with IMF representatives, considering the data associated with proposed measures to alleviate power tariffs and their potential effects on circular debt, cash flow, and potential delays in Independent Power Producers (IPPs) payments, ensuring the stability of the power sector. 

    In response to continuous protests by citizens and traders against soaring power bills and added taxes, the government is actively seeking to convince the global lender to grant immediate relief to electricity consumers in a nation already grappling with severe inflation. 

  • Relief plan for electricity bills to be revealed in 48 hours: PM Kakar

    Relief plan for electricity bills to be revealed in 48 hours: PM Kakar

    Caretaker Prime Minister Anwaar ul Haq Kakar made an announcement on Thursday, revealing that his administration will unveil a relief plan for addressing the widespread protests triggered by escalating electricity bills within 48 hours.

    PM Kakar informed me that his government conducted an exhaustive review of electricity bills spanning the last two months. He highlighted that all institutions were questioned regarding their utilisation of complimentary electricity and stressed that the issue of exorbitant electricity bills needed a measured perspective.

    According to Geo, the caretaker prime minister underscored that while the electricity bills must be settled, it is imperative to comply with the terms outlined by the International Monetary Fund (IMF). He attributed the surge in electricity bills to independent power producers (IPPs) and transmission line losses, emphasising that collaboration with the IMF was underway to address the matter. Despite the prevalent inflation, PM Kakar argued against an extensive strike.

    In addressing the allocation of free electricity units, PM Kakar assured that the military does not avail itself of free electricity; rather, it is funded through the defence budget.

    Additionally, he clarified that the judiciary does not enjoy complimentary electricity, and in the Wapda sector, only certain employees from grades 1 to 16 benefit from this provision. Employees in grades above 17 receive free units.

    PM Kakar expressed his perspective that most protests originate from employees in grades 1–16. He suggested redirecting financial assistance towards officers in grades 17 to 22 instead of offering free electricity. He emphasised the need for stakeholders to formulate a policy within the following 48 hours.

    Regarding the impending general elections, PM Kakar assured that the elections would occur as scheduled, with the understanding that the Election Commission of Pakistan holds the authority in this matter. He asserted that adherence to the interpretation of the law by the Supreme Court is essential and should be respected.

    Frustrated citizens, grappling with soaring inflation, have been participating in demonstrations against substantial increases in electricity tariffs and heightened taxes nationwide.

    In light of the ongoing public outcry over exorbitant electricity bills, the caretaker government is contemplating the possibility of allowing individuals burdened by inflation to settle bills for up to 400 units in six-month installments. This proposal emerged following discussions held during a cabinet meeting, which also addressed the influence of IMF conditions on elevated energy costs.

    During the session, caretaker Finance Minister Dr Shamshad Akhtar updated the attendees about ongoing negotiations with the IMF, highlighting its pivotal role in the escalated energy tariffs.

  • Retired Justice Maqbool Baqar becomes Interim CM Sindh

    Retired Justice Maqbool Baqar becomes Interim CM Sindh

    On Monday evening, Sindh’s Chief Minister (CM) Murad Ali Shah, and the Leader of the Opposition in the dissolved Sindh Assembly, Rana Ansar, agreed on appointing Justice (retd) Maqbool Baqar as the eighth interim CM of Sindh. He will be taking his oath tomorrow.

    Around midnight yesterday, Mayor Karachi Murtaza Wahab Siddiqui posted on X (former Twitter), “I would like to inform you that the consultative process between CM Sindh & Opposition Leader under Article 224(1A) took place on 12th, 13th & 14th of August. Both leaders have concurred to nominate Justice Maqbool Baqar as the interim Chief Minister of the Sindh Government.”

    Sindh CM House issued a brief statement that said, “After three-day consultations between Sindh Chief Minister Syed Murad Ali Shah and Leader of Opposition in the dissolved provincial assembly Rana Ansar, the two have agreed on the appointment of retired justice Maqbool Baqar as caretaker chief minister.”

    “The summary for the formal appointment of Justice Baqar has immediately been forwarded to the Sindh governor Kamran Khan Tessori,” the statement added further.

    The ruling party in Sindh, PPP, proposed Justice Baqar’s name for the interim CM position.

    Who is Justice Baqar?

    Justice Maqbool Baqar is a retired judge of the Supreme Court of Pakistan. Born in Karachi on April 5, 1957, Justice (retd) Baqar did his LLB from the University of Karachi in 1979. He became the Chief Justice of the Sindh High Court on September 20, 2013, and was elevated to a Judge of the Supreme Court of Pakistan on February 17, 2015. Justice Baqar retired as a Supreme Court judge on April 4, 2022. His name was also under consideration in 2022 for the position of Chairman of National Accountability Bureau (NAB).

    During his service at the SHC, Justice Baqar’s decisions in terrorism cases infuriated terrorist organizations, leading to an attack by Lashkar-e-Jhangvi in a bombing incident on June 26, 2013, in Karachi. He, along with law enforcement personnel, sustained injuries during the attack. He returned to work after undergoing months of restorative surgery.

    One of his notable judgments is in the case of the Baldia factory fire, which resulted in significant compensation for the victims of the incident.

    Justice (retd) Baqar has also frequently highlighted shortcomings within the judiciary. Even in his farewell address at the Supreme Court, he admitted, “I believe that despite our efforts, we have not met expectations. Backlogs and pending cases remain exceedingly high across all courts in the nation. This reality should concern all stakeholders. It is vital that we eliminate obstacles to swift and affordable justice and take steps to prevent unnecessary delays in adjudication with genuine dedication and a focused approach to fulfilling our constitutional role.”