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  • ECC approves grant for salary disbursement to PSM employees

    ECC approves grant for salary disbursement to PSM employees

    ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a grant for disbursement of Rs1.38 billion of projected salary to employees of Pakistan Steel Mills (PSM).

    The ECC considered and approved a summary of Ministry of Industries & Production (MoIP) and allowed the payment of projected net salary of Rs1.378 billion for the Financial Year 2022-2023 to be disbursed every month to Pakistan Steel Mills (PSM) employees through a technical supplementary grant.

    READ MORE: ECC approves clearance of banned items landed till August 18, 2022

    This decision will ensure the disbursement of monthly salaries to the employees.

    This was approved in ECC of Cabinet meeting Chaired by Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar.

    Federal Minister for National Food Security and Research Chaudhary Tariq Bashir Cheema, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Shahid Khaqan Abbasi MNA/ex-PM, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Tariq Bajwa, Coordinator to PM on Commerce and Industry Rana Ihsan Afzal, Federal Secretaries and senior officers attended the meeting.

    READ MORE: USC to disburse ration bags worth Rs540 million to flood victims

    Ministry of Commerce presented a summary on amendment in Import Policy Order 2022 to allow import of the Holy Quran subject to NOC from the relevant Federal or the Provincial Authority.

    The summary was presented in the light of the directions of the honourable Lahore High court and Baluchistan High court directing the Federal and Provincial authorities to ensure only error-free printing, publishing, recording and import of copies of the Holy Quran. The proposed amendment of import of the Holy Quean was subject to NOC. The ECC after discussion approved the proposal.

    The ECC also approved another summary of Ministry of Commerce seeking amendment in the earlier decision of the ECC dated 25-07-2022 on Regionally Competitive Energy Rates for Export Oriented Sectors during FY 2022-23 and allowed amendment that “the electricity tariff will be effective from 1st August, 2022, whereas RLNG tariff will be effective from 1st July, 2022.”

    READ MORE: Pakistan State Oil gets Rs30 billion to avoid default

    The ECC considered a summary of Petroleum Division and allowed to grant a Development and Production Lease (D&PL) for (15) fifteen years w.e.f 15-01-2022 over Kandhkot Mining Lease area on existing Gas Price and subject to the condition that M/s PPL will pay all the financial obligations in accordance with Petroleum Policy 2012.

    Kandhkot discovery was made by PPL in 1959. The Government granted the mining lease over Kandhkot Gas field for a period of 30 years in 1962 which was renewed for further thirty years in 1992.

    Petroleum Division submitted another summary on revival of revoked petroleum exploration licenses. It was informed that (11) eleven exploration licenses were revoked due to non performance of work commitment and non-payment of financial obligations by various exploration & production companies.

    In all the eleven blocks, status quo order was passed by the respective Civil Courts, Islamabad and Sindh High Courts. It is pertinent to mention that the litigant companies have approached the government and shown keen interest in exploration of the blocks awarded. In order to resolve this longstanding issue of litigation, which has resulted in halting of exploration and production activities in some of the respective blocks of the country, Petroleum Division has developed a framework for revival of revoked licenses through out of court settlement.

    The ECC after detail discussion approved the proposed framework.

    READ MORE: Pakistan decides to lift ban on imported goods

    The ECC approved another summary of Petroleum Division for change of effective control from M/s Eni ULX Limited, M/s Eni UK Limited and M/s Eni Oil Holdings B.V, in respect of its subsidiary companies i-e M/s ENI Pakistan Limited , ENI

    Pakistan (AEP) Limited and ENI Pakistan (M) Limited , respectively to M/s Prime International Oil & Gas Company Limited (PIOGCL) subject to condition that PIOGCL shall be liable to the Government for all the minimum work commitments and financial obligations and Government’s revenue s will not be adversely affected after this change of effective control.

    Ministry of National Health Services, Regulations and Coordination presented a summary on proposal for increase in Maximum Retail Price (MRPs) of Paracetamol products. The ECC approved following agreed price of Paracetamol products.

    DescriptionProduct Current Price (Rs.)Demand Price (Rs.)Agreed Price (Rs.)
    Plain 500mg1.872.672.35
    Extra 500mg2.193.322.75
    Liquid104.8117.6117.6

    The ECC also approved Technical Supplementary Grants of Rs. 30,888.5 million in favour of Defence Division and Rs. 1000 Million for Ministry of Housing and Works.

  • SBP’s weekly forex reserves dip by $157 million to $7.44 billion

    SBP’s weekly forex reserves dip by $157 million to $7.44 billion

    KARACHI: The official weekly foreign exchange reserves of the State Bank of Pakistan (SBP) fell by $157 million to $7.44 billion by week ended October 21, 2022, the central bank said on Thursday.

    The official foreign exchange reserves of the SBP were at $7.597 billion a week ago i.e. October 14, 2022.

    READ MORE: Pakistan’s weekly forex reserves increase nominally

    The central bank attributed the decline to external debt repayments.

    SBP however said it h ad received $1.5 billion from Asian Development Bank (ADB) in value on October 26, 2022 as disbursement of loan for the Government of Pakistan. These proceeds will be reflected in SBP reserves for the week ending October 28, 2022.

    READ MORE: Pakistan’s forex reserves continue to fall; deplete to $13.25 billion

    The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP dropped by $12.706 billion.

    Previously, the central bank received $1.16 billion from the International Monetary Fund (IMF) under Extended Fund Facility (EFF) program, which increased the official reserves to $8.8 billion. But scheduled repayment gradually depleted the official reserves of the central bank.

    READ MORE: Pakistan’s forex reserves decline to $13.59 billion

    The total foreign exchange reserves of the country fell by $89 million to $13.162 billion by week ended October 21, 2022 as compared with $13.251 billion a week ago.

    The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $14.066 billion.

    The foreign exchange held by commercial banks witnessed an increase of $68 million to $5.722 billion by week ended October 21, 2022 as against $5.654 billion a week ago.

    READ MORE: State Bank’s forex reserves shrink to $8 billion

  • KTBA demands perfect tax return form before setting filing deadline

    KTBA demands perfect tax return form before setting filing deadline

    The Karachi Tax Bar Association (KTBA) has strongly criticized tax authorities for their handling of unresolved issues surrounding the filing of income tax returns for the tax year 2022.

    (more…)
  • Dollar climbs to PKR 221.50 on rising political tension

    Dollar climbs to PKR 221.50 on rising political tension

    KARACHI: The US dollar on Wednesday climbed up by 82 paisas against the Pakistani Rupee to PKR 221.50 owing to rising political tension in the country.

    The exchange rate ended with a decline of 82 paisas in rupee value to end at PKR 221.50 to the dollar from previous day’s closing of PKR 220.68 in the interbank foreign exchange market.

    READ MORE: Rupee slips sharply to dollar on PTI long march

    Currency experts said that the announcement of the longa march by Pakistan Tehreek I Insaaf (PTI) had shaken investors’ confidence.

    PTI Chief Imran Khan two days back announced long march against the present government. He announced the rally would begin from Friday October 28, 2022 for an indefinite period.

    Since the announcement of country-wide protest rally the rupee fell PKR 1.77 against the dollar.

    PTI Chief Imran Khan was removed as prime minister through a vote of no confidence by the allied political parties in April this year. Imran Khan claimed that his government was toppled by a conspiracy.

    READ MORE: Rupee recovers to PKR 219.73 against dollar

    Prior to the announcement of the long march, the rupee witnessed recovery against the greenback due to removal of Pakistan name from the grey list of the Financial Action Task Force (FATF).

    Further, the sentiments were also improved due to commitment of Asian Development Bank (ADB) to finance the country. The ADB approved a financing of $1.5 billion to the country. Currency experts said that the approval of loan program by the ADB helped the rupee to make gain.

    Interestingly, the amount of $1.5 billion was received last night by the State Bank of Pakistan (SBP). However, the fund transfer also failed to support the local currency.

    READ MORE: Dollar slips to PKR 220.41 on improved economic sentiments

    Previously, the rupee was also supported by contraction in current account deficit during the first quarter of the current fiscal year.

    Pakistan’s current account deficit has recorded a decline of 37 per cent to $2.21 billion during first quarter (July – September) of fiscal year 2022/2023, according to official data released last week.

    The current account deficit of the country was $3.53 billion in the same quarter of the last fiscal year.

    READ MORE: Rupee gains 11 paisas to dollar on ADB loan approval

    Contraction in current account deficit can be attributed to significant fall in trade deficit. The trade deficit also contracted by 21.32 per cent to $9.22 billion during first quarter of the current fiscal year as compared with the deficit of $11.72 billion in the same quarter of the last fiscal year.

    Furthermore, the local currency also received support as the level of foreign exchange reserves were remained flat.

    Pakistan’s weekly foreign exchange reserves increased nominally to $13.251 billion by week ended October 14, 2022 as compared with $13.247 billion a week ago i.e. October 7, 2022.

  • OGDCL announces huge oil discovery at Attock

    OGDCL announces huge oil discovery at Attock

    KARACHI: Oil and Gas Development Company Limited (OGDCL) on Thursday announced huge oil discovery at Attock District, Punjab Province, Pakistan.

    The company shared the information of oil discovery with the Pakistan Stock Exchange (PSX) and London Stock Exchange.

    READ MORE: OGDCL discovers gas deposits at Kohat District

    In its communication, the company said that OGDCL being operator of Toot Mining Lease with 100 per cent working interest has made oil discovery from Lockhart Formation at Toot Deep-1 well which is located in Attock District, Punjab province, Pakistan.

    READ MORE: Latest petroleum prices in Pakistan

    Toot Deep # 01 well was spudded-in on December 25, 2022 and successfully drilled down to total depth at 5545 meters in Tobra Formation. Based on interpretation results of open hole logs data, Lockhart Formation has successfully tested oil at the rate of 882 Barrel per day and 0.93 million standard cubic feet per day (MMSCFD) gas at well head flowing pressure (WHFP) of 600 pounds per square inch (psi) at 32/64” choke size.

    READ MORE: Techaccess Pakistan hosts session on in power sector cybersecurity

    “This discovery has further extended the hydrocarbon play area in Pothohar basin, OGDCL being leading exploration and production company in Pakistan has adopted aggressive exploration strategies which has resulted in hydrocarbon discoveries.”

    This discovery will add to the hydrocarbons reserves base of OGDCL and contribute positively towards oil and natural gas production from indigenous resources of Pakistan, the company added.

    READ MORE: Lucky Cement installs 25.3 MW solar energy plant at Karachi

  • SBP receives $1.5 billion from Asian Development Bank

    SBP receives $1.5 billion from Asian Development Bank

    State Bank of Pakistan (SBP) on Wednesday night said it received $1.5 billion from Asian Development Bank (ADB) as disbursement of policy based loan for Pakistan.

    In a Tweet on Wednesday late night, the central bank said that it had received $1.5 billion from the ADB in value October 26, 2022 as disbursement of policy based loan for the government of Pakistan.

    “These proceeds have increased the foreign exchange reserves of SBP and will be reflected in the reserves for the week ending October 28, 2022,” it added.

    READ MORE: Asian Bank approves $1.5 billion to finance Pakistan

    Earlier an official statement revealed that the ADB released $1.5 billion to the SBP under Building Resilience Under Active Countercyclical Expenditures (BRACE) Program.

    The BRACE program aims to support the government’s efforts to deal with the adverse impacts of devastating floods, supply chain disruptions, rising energy, fuel prices and inflation on the poor and vulnerable.

    READ MORE: FATF removes Pakistan from grey list

    It would expand the number of families receiving cash transfers through Benazir Income Support Programme (BISP) from 7.9 million to 9 million, increase the number of children enrolled in primary and secondary schools, and enhance geographic coverage of health services and nutritional supplies for pregnant and lactating mothers and children under 2 years old.

    The program is completely aligned with the Government’s strategy to provide targeted and temporary countercyclical relief measures.

    The facility aims to support deployment of planned countercyclical development expenditure and will promote sound macroeconomic management.

    READ MORE: Foreign direct investment in Pakistan plunges by 47% in 1QFY23

    The program is also in line with the framework of ongoing International Monetary Fund (IMF) program to implement necessary structural reforms to improve the country’s macroeconomic prospects.

    It will also enhance support for business entities to safeguard employment and would help increasing food security measures as well. Furthermore, it will also strengthen social safety net and fiscal measures for the government’s crisis response.

    The BRACE program amounting to US$ 1.5 billion was approved by the ADB Board on Friday, 21st October 2022.

    This program was initially conceived and approved by the ADB’s Board in May 2022 under a new Countercyclical Support Facility (CSF) to provide targeted support to its developing member countries (DMCs) facing emergency situations.

    READ MORE: Pakistan’s weekly forex reserves increase nominally

    The signing ceremony of the BRACE Program was held on 24th October 2022 at Prime Minister House, which was witnessed by the Prime Minister of Pakistan, Federal Minister for Economic Affairs, Sardar Ayaz Sadiq, Federal Minister for Finance and Revenue, Senator Ishaq Dar along with Director General ADB Central and West Asia Department.

  • Pharma industry agrees to provide paracetamol at reduced prices

    Pharma industry agrees to provide paracetamol at reduced prices

    ISLAMABAD: Federal Minister Senator Mohammad Ishaq Dar on Wednesday said that the pharma industry agreed to provide paracetamol products at reduced prices.

    He said this during a meeting with heads of pharmaceutical companies involved in the production of paracetamol products, a Finance Ministry press release said. The meeting was also attended by the SAPM on Finance Tariq Bajwa.

    READ MORE: Manufacturing Panadol on negative margins unsustainable: GSK Pakistan

    The meeting reviewed the maximum retail price and shortage of paracetamol products in the country and discussed modalities for smooth supply and availability of paracetamol products in the markets at affordable rate.

    It was informed that rising import prices of pharmaceutical raw materials and increasing production costs are increasing the shortage of essential medicines in the market.

    The pharmaceutical heads demanded a high increase in the prices of paracetamol products to overcome the shortage.

    READ MORE: GSK confirms raid related to Panadol shortage

    In order to resolve the issue of shortage of paracetamol products and to support local manufacturers, the chair discussed in details with the stakeholders and following reduced prices of paracetamol products have been agreed upon by the Pharma industry against their demanded prices.

    The production of Paracetamol products has been started by the Pharmaceutical manufacturers.

    The Pharma industry agreed upon the reduced prices of paracetamol (plain) 500 mg tablet at Rs 2.35; paracetamol (extra) 500mg at Rs. 2.75 and Syrup at Rs. 117.6, which is almost half of the price increase demanded by them.

    The Pharma industry demanded the prices of paracetamol (plain) 500 mg tablet at Rs 2.67; paracetamol (extra) 500mg at Rs. 3.32 and Syrup at Rs. 117.6.

  • Rupee slips sharply to dollar on PTI long march

    Rupee slips sharply to dollar on PTI long march

    KARACHI: Pakistani Rupee (PKR) slipped by sharp 95 paisas against the US dollar on Wednesday owing to unstable political situation after a long march announced by PTI Chief Imran Khan.

    Exchange rate recorded 95 paisas decline in rupee value to end at PKR 220.68 from previous day’s closing of PKR 219.73 in the interbank foreign exchange market.

    READ MORE: Rupee recovers to PKR 219.73 against dollar

    Currency experts said that the market participants were in panic after expected political instability in the country.

    PTI Chief Imran Khan a day earlier announced a country-wide protest with a long march towards the federal capital Islamabad. He announced the rally would begin from Friday October 28, 2022 for an indefinite period.

    READ MORE: Dollar slips to PKR 220.41 on improved economic sentiments

    PTI Chief Imran Khan was removed as prime minister through a vote of no confidence by the allied political parties in April this year. Imran Khan claimed that his government was toppled by a conspiracy.

    Prior to the announcement of the long march, the rupee witnessed recovery against the greenback due to removal of Pakistan name from the grey list of the Financial Action Task Force (FATF).

    Further, the sentiments were also improved due to commitment of Asian Development Bank (ADB) to finance the country. The ADB approved a financing of $1.5 billion to the country. Currency experts said that the approval of loan program by the ADB helped the rupee to make gain.

    READ MORE: Rupee gains 11 paisas to dollar on ADB loan approval

    The ADB in a statement on Friday said that it had approved $1.5 billion in financing to help the Government of Pakistan provide social protection, promote food security, and support employment for its people amid devastating floods and global supply chain disruptions.

    Besides, the rupee was also supported by contraction in current account deficit during the first quarter of the current fiscal year.

    Pakistan’s current account deficit has recorded a decline of 37 per cent to $2.21 billion during first quarter (July – September) of fiscal year 2022/2023, according to official data released last week.

    The current account deficit of the country was $3.53 billion in the same quarter of the last fiscal year.

    READ MORE: Dollar inches up to end at PKR 220.95 in interbank market

    Contraction in current account deficit can be attributed to significant fall in trade deficit. The trade deficit also contracted by 21.32 per cent to $9.22 billion during first quarter of the current fiscal year as compared with the deficit of $11.72 billion in the same quarter of the last fiscal year.

    Furthermore, the local currency also received support as the level of foreign exchange reserves were remained flat.

    Pakistan’s weekly foreign exchange reserves increased nominally to $13.251 billion by week ended October 14, 2022 as compared with $13.247 billion a week ago i.e. October 7, 2022.

  • Last date extended for exchanging bearer prize bonds to June 30, 2023

    Last date extended for exchanging bearer prize bonds to June 30, 2023

    ISLAMABAD: The federal government on Tuesday announced to extend the last date for exchanging / converting the bearer prize bonds up to June 30, 2023.

    The bearer prize bonds with denominations of Rs40,000/-, Rs25,000/-, Rs15,000/ and Rs7,500 were expired on June 30, 2022. However, there is huge amount unclaimed against these bearer bonds and people complained for not providing sufficient time for exchanging the bonds.

    READ MORE: Pakistan-issued prize bonds expire on June 30, 2022

    The finance division through various notifications notified the date extension up to June 30, 2023 for the bearer prize bonds.

    The finance ministry launched the withdrawal of the unregistered prize bonds in a phased manner. The federal government on June 24, 2019, announced to discontinue the circulation of Rs40,000 denomination national prize bonds. Similarly, on December 10, 2020, the government announced to discontinue the circulation of Rs25,000 denomination prize bonds. In April 2021, the finance ministry announced that national prize bonds of denominations Rs7,500 and Rs15,000 shall not be sold.

    READ MORE: SBP directs banks to accept bearer prize bonds

    Since June 2019 the government repeatedly extended the date for exchanging the bearer bonds. Previously, the last date for exchanging the unregistered bonds was December 31, 2021.

    The government is aiming to document the bearer bonds so the exchanging the unregistered bond with cash has been prohibited. The ministry of finance issued various procedure to convert the bond without exchanging with the cash.

    READ MORE: Prize bond (bearer) holders given 3 months to document

    The bonds can be converted to premium prize bonds (registered) of denomination of Rs25,000 and Rs40,000 (subject to the adjustment of differential amount) through 16 field offices of State Bank of Pakistan (SBP) Banking Services Corporation (BSC), and branches of six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited, and Bank Alfalah Limited.

    READ MORE: History of Prize Bonds in Pakistan

    The bonds can be replaced with Special Saving Certificates/Defence Saving Certificates through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks, and the National Savings Center.

    The bonds will only be encashed by transferring the proceeds to the bonds holder’s bank account through the 16 field offices of SBP BSC as well as the authorized commercial bank branches and to the Saving Accounts at National Savings Centers.

  • Prime Minister Shehbaz arrives Saudi Arabia to attend FII Summit

    Prime Minister Shehbaz arrives Saudi Arabia to attend FII Summit

    RIYADH: Prime Minister Shehbaz Sharif on Monday arrived Riyadh, Saudi Arabia on a two-day visit to attend the Future Investment Initiative (FII) Summit being held from October 25-27, 2022.

    The prime minister is visiting the Kingdom at the invitation of Saudi Crown Prince Mohammed Bin Salman bin Abdulaziz.

    At the airport, the Governor of Riyadh Faisal bin Bandar bin Abdulaziz Al Saud received the prime minister who was accompanied by a delegation comprising the federal ministers.

    READ MORE: Prime Minister Shehbaz wishes Hindu community on Diwali

    During his stay in Riyadh, the prime minister will hold consultations with the Saudi Crown Prince to review the longstanding fraternal relations, with a view to further strengthening the multifaceted cooperation, especially in the economic field, according to the Foreign Office.

    Prior to his departure, the prime minister in a series of tweets said the present state of the global economy needed “new thinking and bold vision to overcome the irritants and forge new paths”.

    “The pandemic and climate-induced disasters have already put immense strains on the developing countries,” he said, adding that it was high time the world explored solutions to the deepening challenges through candid dialogue.

    The FII summit will convene the world’s foremost CEOs, policymakers, investors, entrepreneurs, and young leaders to shape the future of international investment and the global economy.

    The event will include in-depth conversations about new pathways for global investment; analysis of critical industry trends; and unparalleled networking among CEOs, world leaders, and experts.