Day: November 9, 2021

The State Bank of Pakistan (SBP) has categorically rejected social media rumors which claimed that the central bank is planning to introduce new designs of currency notes.

Terming such reports as ‘fake,’ SBP clarified that no proposal to replace the current currency notes is being considered at the moment.

Multiple reports on social networking platforms started doing the rounds over the weekend, claiming that SBP has approved new designs of currency notes to check the rampant circulation of fake currency in the country.

These reports also claimed that the Fine Arts department of Peshawar University designed the new plastic denominations of Rs. 50, 100, 500, and 1,000 currency notes that contained all the latest features.

However, SBP has debunked these reports, which means that the current designs of all denominations of the currency notes will continue for the time being.

Note that this is the second time this month that SBP has been forced to issue a clarification regarding fake news attributed to the central bank.

On 29 October, the National Bank of Pakistan (NBP) faced a cyberattack, which caused disruption in its services.

While millions of public sector’s current and former employees were already suffering due to the non-disbursement of salaries and pensions, reports started doing the rounds that 9 other banks were also affected by the attack on NBP.

On 1 November, SBP strongly rejected such reports and clarified that no bank, other than NBP, faced a cyberattack, adding that no financial loss or data breach has been reported by NBP.

Source: Pro Pakistani

National Electric Power Regulatory Authority (NEPRA) has issued a notification to increase electricity cost with reference to fuel price adjustment for September 2021.

The hearing was conducted by the authority in the last week of October as the Central Power Purchasing Agency (CPPA) filed a petition to increase fuel prices up to Rs. 2.68 per unit as reference fuel price per unit was Rs. 5.02 per unit. The average generation cost for September was Rs. 7.55 per unit.

The notification of increase is applicable to all ex-Wapda distribution companies consumers, except K-Electric and lifeline consumers. The increase will be added in November for consumers.

According to details, the tariff increase was approved on account of the monthly fuel cost adjustment (FCA) for September 2021 and will be charged from consumers in the billing month of November 2021.

The price hike will be applicable to all categories of consumers except lifeline consumers who consume less than 50 units and K-Electric consumers. The increase of Rs. 2.51 per unit in the price of electricity is expected to put an additional burden of up to Rs. 35 billion on the power consumers.

Source: Pro Pakistani

The military-run Special Communication Organization (SCO) has warned that delaying the execution of the Pak-China Optic Fiber Cable (OFC) Phase-II project will result in an escalation of costs and other associated complications.

The scope of the project that is under the China-Pakistan Economic Corridor (CPEC) and is worth around Rs 38 billion is the extension of the OFC network to Karachi and Gwadar along CPEC routes and the establishment of a landing station at Gwadar. Its total cost was estimated to be $236.97 million (Rs 37.91 billion), with a completion time of four years and a total network length of 7990 km.

The project was approved by the Executive Committee of the National Economic Council (ECNEC) on 21 January 2021 and a loan application is under process with the Chinese side for the provision of 85 percent of its cost.

The government has not allocated any funds during the current fiscal year for the undertaking of pre-implementation formalities of the project such as the hiring of consultancy services, surveys, and tendering, etc.

The objectives of the project are:

i. to provide an alternate path for international connectivity through Pakistan’s northern border with China;

ii. to provide continuous and uninterrupted connectivity between the country’s northern and southern borders by establishing multiple rings for secure and uninterrupted communication;

iii. to provide an alternate route from Rawalpindi to Gwadar and Karachi along the CPEC for the provision of a backbone media and ICT facilities all along the trade corridor routes besides meeting the communication requirements of the security forces employed for the protection of the sensitive trade route;

iv. to provide a linkage at Gwadar and Karachi with the international submarine optical fiber cable systems by establishing a Landing Station at Gwadar and Karachi;

v. for it to become an international gateway route for voice/data traffic by providing connectivity between China and the Central Asian states with the Middle East, Africa, Europe, and beyond, and also linking the neighboring countries through direct connectivity. The envisaged network will transform Pakistan into a Digital Gateway Hub of regional connectivity through the establishment of the IPX (Carrier Exchange).

It was also envisaged as an alternative path for international connectivity that will be established as a result of this project, this ensuring continuous and uninterrupted global communication.

Another main benefit is that the OFC will pass through remote and unserved areas. It will also facilitate the provision of high-speed broadband to the local population and allow them to access tele-health, online education, and other public and e-business services at their premises. International transit internet traffic will also pass through the OFC and earn foreign exchange to contribute towards economic growth. This will, in turn, open up new business vistas and job opportunities in the country.

The Ministry of Planning, Development and Special Initiatives Central Development Working Party (CDWP) had recommended it with certain directions on 2 December 2020. Phase-I of the OFC project was inaugurated on 13 July 2018. The project is an 820 km long Optical Fibre Cable link between Rawalpindi and the Khunjerab Pass on the Pakistan-China border.

The SCO has enlisted several challenges to its operation obligations, including funding/budgetary allocation for the Pak-China OFC Phase-II and the approval of the NGMS Phase-3 (revised) by the CDWP for growth in a competitive environment. It stated that the provision of services in Mainland-Sec 40 of the Pakistan Telecommunication Re-organization Act (PTRA), 1996, does not bar the SCO’s operation in mainland Pakistan, especially in Balochistan and the former FATA.

The SCO was developed under the Ministry of Defence with the charter of the T&T department and was later transferred to the Ministry of Information Technology and Telecommunication.

The organization is working under Section 40 of the PTRA, 1996, which provides the SCO exclusivity in Azad Jammu and Kashmir and Gilgit-Baltistan. It also possesses a telecom infrastructure provider license for mainland Pakistan, and its revenue target for 2020-21 was Rs 5.094 billion as compared to Rs 4.960 billion in 2019-20.

Source: Pro Pakistani

The Pakistani Rupee (PKR) has posted losses against the US Dollar (USD) for the second time this week as the local unit deteriorated by Rs. 1.12 against the greenback in the interbank currency market today.

It depreciated by 0.65 percent from yesterday’s (8 November) rate of Rs. 170.51 against the US dollar in the interbank currency market, dropping to its lowest of Rs. 171.63 since hitting embarrassing lows in October.

Zafar Paracha, the Chairman of the Exchange Companies Association of Pakistan, told a national daily, “It was expected that after the confirmation of a $6 billion IMF loan, $1 billion would be immediately available which would improve the supply in the interbank market”. He added that the rupee will remain under pressure until the IMF deal is confirmed.

A week prior to today’s hair-raising interbank collapse of the Rupee, the Finance Advisor, Shaukat Tarin, had indicated that an agreement had been reached with the IMF on the restoration of the $6 billion Extended Fund Facility and that a formal agreement will be signed later this week. Regardless of that development, a formal go-ahead for the facility remains unresolved and the pressure continues to mount against the Rupee.

Asad Rizvi, the former Treasury Head at the Chase Manhattan Bank, commented on the delays in fiscal reforms earlier in the day and said, “The ongoing debate about the Good, the Bad & the Ugly economic policies is a meaningless exercise.”

He added, “Whether we like it or not, to borrow IMF funds, our 1st target is POLICY ADJUSTMENTS & to meet the Conditionalities, which is why financing is based on quarterly installments.”

The PKR also failed to report any gains against other major currencies from last week and posted losses in the interbank currency market today.

It posted losses of Rs. 1.06 against the Canadian Dollar (CAD), a whopping Rs. 2.92 against the Pound Sterling (GBP), Rs. 1.2 against the Australian Dollar (AUD), and Rs. 1.57 against the Euro (EUR).

It also posted a loss of 30 paisas against the UAE Dirham (AED) and 29 paisas against the Saudi Riyal (SAR) in today’s interbank currency market.

Source: Pro Pakistani