Day: November 30, 2021

Prime Minister Imran Khan chaired a meeting of the Federal Cabinet in Islamabad on Tuesday, 30 November.

The meeting discussed the country’s overall economic and political situation and approved several developments and regulations, keeping in view the near-term outlook for progress as November draws to a close.

Federal Minister, Asad Umar, briefed the cabinet on the new variant of COVID-19, Omicron. The meeting was informed that the new variant originated in Africa. According to initial reports, the rate of spread is very high.

The cabinet called for the implementation of COVID-19 SoPs such as the use of masks in public places, social distancing, and vaccinations for public safety. Keeping the transparency in view, the cabinet directed the concerned departments to clarify the audit report on the package for COVID-19.

The cabinet was briefed regarding the introduction of electronic voting machines and the empowerment of Overseas Pakistanis to vote. Federal Minister Shibli Faraz gave a briefing on procurement of Electronic Voting Machines, training of staff, responsibilities of concerned agencies, public awareness campaign, and timely delivery.

The cabinet expressed grave concerns over the release of a video of alleged vote-buying during the by-elections in NA-133. The cabinet said such illegal actions were anti-democratic.

The Adviser to the Prime Minister on Finance and Revenue, Shaukat Tarin, presented a comparative review of the prices of essential commodities to the Federal Cabinet. As per revised statistics, it was revealed that the weekly inflation fell to 0.67 percent, and at the same time, the prices of 5 commodities have seen a declining trend.

The cabinet was informed that apart from the prices of ghee and tea leaves in the region, prices of all other household items were lower in Pakistan. These items include flour, grams, dal mash, dal mung, tomato, onion, chicken, and petrol.

The cabinet was informed that the prices of flour, sugar, lentils, and gram lentils in Sindh are much higher than in other provinces. While on the topic, the cabinet expressed grave concerns over the rising prices of essential commodities in Sindh.

The Petroleum Division briefed the cabinet on the vacancies of MD and CEO in the organizations under the division. The cabinet was informed that at present, 4 posts were vacant, for which the appointment process is in progress.

The Committee on Energy had recommended the Gas Load Management Plan for Winter 2021-22 and the setting up of the Oil Depot at Kemari Karachi. The cabinet ratified the decisions taken at the meeting of the Committee on Energy held on 18 November 2021.

Gas Load Management Plan for Winter 2021-22

The meeting participants decided that domestic gas will be reserved for domestic consumers only because of its low cost. The remaining miscellaneous items on the agenda were as follows:

• The CNG sector will be closed from 1 December 2021 to 15 February 2022

• Gas supply to Independent Power Producers (IPPs) and fertilizer factories will continue.

• Gas supply to export sector industries will continue.

• Power plants running on LNG will be provided 5% additional gas.

• Electricity prices have been reduced for domestic consumers in winter

(Rs. 12.96 per kWh) to meet the gas shortage.

• Gas saved from CNG, Cement and Captive Power will be used for domestic consumption.

• A public awareness campaign is being launched to save gas.

• Subsequently, on the recommendations and directions of the Aviation Ministry, the cabinet approved the renewal of aviation licenses of M/S Serene Air, M/S Airblue, M/S PIACL, and M/S PrincelyJets under the National Aviation Policy 2019.

• Further, on the recommendations of the Ministry of Aviation, the cabinet approved the delimitation of high-rise buildings around airports under the Civil Aviation Authority Rules. In this regard, it was informed that the height limit of buildings in the Islamabad Blue Area had been fixed at 1,000 feet. The decision will also help prevent the rampant spread of urban boundaries, save vegetation and preserve agricultural land.

• Separately, on the recommendations of the Ministry of Commerce, the cabinet allowed the staff stationed at the Pakistani Embassy in Tehran to import personal vehicles on repatriation under the Hardship Policy.

• Also, as suggested by the Commerce Ministry, the cabinet approved the import of Montanide Oil from France for the treatment of Foot-and-Mouth disease in cattle in Punjab.

• Consequently, on the recommendation of the Ministry of Interior, the cabinet approved to increase the visa period from 120 days to 150 days for those from Tablighi Jamaat coming to Pakistan from foreign countries. It was also decided to grant 45 days Visa on Arrival for the Tablighi Jamaat. Visas can be obtained through the online visa portal.

• On the other hand, the cabinet participants, on the recommendation of the Ministry of Overseas Pakistanis, postponed approval to issue Overseas Employment Promoter Licenses. The cabinet directed for a procedure to be worked out within a week to review the work of these promoters. Special care should be taken that promoters should not be illegally charging extra money from those traveling abroad, it was stated.

• Cabinet approved procedure for appointment of the Employees Old-Age Benefits Institution (EOBI) Chairman. This appointment will be carried out under the Competitive Process of Management Position Scale Policy 2020.

• Moreover, the cabinet ratified the decisions taken at the meeting of the Committee on Institutional Reforms held on 12 November 2021. The meeting recommended the reorganization of the Pakistan Gems and Jewelry Development Company.

• On the recommendation of the Ministry of Information and Broadcasting, the cabinet approved the setting up of a selection board for the appointment of Chairman ITNE and Chairman Press Council of Pakistan.

• The Selection Board for Chairman ITNE will consist of the Minister of Information, Secretary Information, Additional Secretary Information, Grade 21 Representatives of Establishment Division, and Ministry of Law.

• The Selection Board for the Chairman Press Council of Pakistan will consist of the Minister of Information, Secretary Information, Additional Secretary Information, Representatives of the Establishment Division, and Ministry of Law.

• Federal Minister for Industries and Production gave a detailed briefing to the cabinet on the current stock and prices of fertilizers in the country.

• The cabinet meeting was informed that this year, the fertilizer companies released 53 percent more fertilizer to the dealers in Sindh compared to the previous year, due to which there was a shortage of urea in Punjab and other areas, and the price had gone up.

• However, on the directions of the Prime Minister, measures were taken against hoarders and to reduce this disparity, which resulted in an average reduction of Rs. 400 per sack. At present, a sack of urea is available in Gujranwala for Rs. 1,850.

• There is also a surplus of 200,000 tons of fertilizer compared to the domestic demand.

• Additionally, it was informed that an online portal had been set up to monitor the supply of fertilizers through which, the federal government, provinces, and administrations of all districts can monitor the movement and stock of fertilizers.

• It bears mentioning that since November 13, Punjab has taken several steps to curb the hoarding of fertilizers. Among them, 347 FIRs, 244 arrests, 21,111 inspections, 480 warehouse seals, and fines of Rs. 2.79 crore has been imposed. In addition, control rooms have been set up in each district where complaints related to the shortage of fertilizers, hoarding, and profiteering can be lodged. Checkpoints have been set up at provincial borders to curb smuggling.

• The meeting was informed that amendments are being made to the relevant laws against hoarding and profiteering in which informants will be rewarded in proportion to the confiscated property.

• On the geopolitical level of affairs, the meeting members discussed and approved 50,000 tons of wheat aid to Afghanistan.

• Besides the above, the cabinet approved the appointment of Muhammad Saleem as Chairman Privatization Commission. The cabinet also ratified the decisions taken at the meeting of the Economic Co-ordination Committee held on November 29, 2021.

• In extension, the meeting participants also discussed and approved to hold a special meeting of OIC Foreign Ministers in Pakistan.

Source: Pro Pakistani

The Federal Board of Revenue (FBR) has collected net revenue of Rs. 2,314 billion during July-November of the current financial year, exceeding the target of Rs. 2,016 billion by Rs. 298 billion.

According to provisional revenue collection figures for the months July-November of FY22, released on Tuesday, the improvement represents a growth of about 36.5 % over the collection of Rs. 1,695 billion during the same period last year.

FBR met the target of Rs. 408 billion fixed for November 2021 and realized Rs. 470 billion as a net collection (Rs. 62 billion in excess of assigned monthly target), representing an increase of 35.2 % over Rs. 348 billion collected in November 2020. The figures will further improve till the day end and after the book adjustments are taken into account.

On the other hand, the gross collections increased from Rs. 1,783 billion during July-November, 2020 to Rs. 2,437 billion in the current financial year, showing an increase of 36.7%. The number of refunds disbursed was Rs. 123 billion during July-November 2021 compared to Rs. 88 billion last year, showing an increase of 40.5 %.

It is pertinent to mention that after collecting over Rs. 4.7 trillion and exceeding its assigned revenue targets set for the tax year 2020-21, FBR has successfully maintained the momentum set in July 2021. The FBR tax collection posted historic high growth in the first quarter of the current fiscal year. During the first four months (July-October), FBR surpassed its revenue target by Rs. 233 billion.

The performance of FBR during the first five months of the current financial year clearly shows that it will achieve the set target of Rs. 5,829 billion for the year despite the daunting challenges, compelling constraints posed by the COVID-19 pandemic, and sporadic tax cuts announced by the government as relief and price stabilization measures.

Source: Pro Pakistani

The Oil and Gas Regulatory Authority has announced a reduction in the price of LPG by Rs. 14,314.32 per metric tonne. The new price is to be applicable from December 1, 2021, according to a news release issued on Tuesday.

Currently, the price of LPG per metric tonne is Rs. 216,894.16, whereas the revised price will be Rs. 202,579.84 per metric tonne.

The reduction in LPG per cylinder amounts to Rs. 168.91. Currently, the price lies at Rs. 2,559.35 per cylinder, whereas the revised price will put the cost of a cylinder at Rs. 2,390.44.

The decision to reduce the price of LPG has been made under Oil and Gas Regulatory Authority Ordinance, 2002.

Source: Pro Pakistani

The National Electric Power Regulatory Authority (NEPRA) on Tuesday reserved its decision on the Central Power Purchasing Agency’s (CPPA) plea seeking an increase, in the power tariff, of Rs. 4.75 per unit for the month of October.

The increase, if approved, will have an impact of around Rs. 60 billion, as expensive power was produced on imported furnace oil in the absence of required LNG supplies. The financial burden on consumers of ex-WAPDA distribution companies (Discos) will be reflected in the billing month of December. However, the consumers of K-Electric and lifeline consumers will be exempted from the surcharge.

The cost of the fuel used in power plants is a pass-through item and is paid for by consumers. As per the petition filed by the CPPA, 10% more electricity has been generated from furnace oil in October. The use of expensive furnace oil and rising global prices have resulted in generating expensive electricity, as per the CPPA briefing in the hearing.

NEPRA officials said that a previous adjustment of Rs. 5.2 billion had also been sought.

According to CPPA, violation of merit order resulted in a burden of over Rs. 1.77 billion and LNG shortage had caused a burden of over Rs. 1.69 billion.

NEPRA officials revealed that less electricity could have been generated from furnace oil had the LNG supply been in accordance with the demand. They added that 15% of electricity, instead of 25%, had been generated from coal. It was disclosed that a unit of the China Hub Power plant had been off-the-grid for the last six months.

Chairman NEPRA, Tauseef H. Farooqi, raised concerns over the use of inefficient power plants. He asked, “doesn’t the nation have the right to ask why cheap plants are not being operated”? He said that power plants around the world were in the open. He asked why did China Power Hub not have arrangements to avoid lightning. NEPRA summoned the power plant management in the next hearing to explain their position.

Vice-Chairman NEPRA, Rafiq Sheikh, observed that the entire burden of running expensive power plants was to be borne by domestic consumers. He raised questions about the NPCC’s failure to comply with the direction of the authority to report the dispatch of generation plants out of merit on daily basis. He said that consistent failure warranted legal processing against NPCC. NEPRA Sindh member said CPPA had failed to submit the segregation of financial impact into heads, including impact on account of the shortage of RLNG, system constraints, and underutilization of efficient power plants, against the merit order.

The NEPRA chairman said that the country witnessed growth due to the industrial package. He maintained that the International Monetary Fund and the World Bank had forecasted growth of only one percent. He said that due to the growth in electricity consumption, the industrial sector bounced back.

CPPA officials told the hearing that the price of 76 cents coal had reached 200 cents, adding that no power plant had been shut down due to shortage of coal.

The NEPRA chairman said that the current situation was very difficult, adding that, “we have to safeguard the consumers, and at the same time we have to allow the fuel cost to increase.” He stated that progress was being made to resolve the issue of LNG demand.

To a question, CPPA informed the authority that the government had paid Rs. 134 billion to IPPs.

After the hearing, the NEPRA reserved its decision. If the proposed increase gets NEPRA’s nod, the per-unit cost of electricity will be increased to Rs 4.75 to be charged in December bills for country-wide consumers, except the Karachi consumers.

Source: Pro Pakistani

The Pakistani Rupee (PKR) reported gains against the US Dollar (USD) and appreciated by 48 paisas against the greenback in the interbank market today. It hit an intra-day high of Rs. 175.55 against the dollar during today’s open market session.

The local currency appreciated by 0.27 percent against the USD and closed at Rs. 175.72 today after it posted losses of 74 paisas and closed at an all-time low of Rs. 176.20 in the interbank market on Monday, 29 November.

This is the second time that the local currency has reported gains on the back of good news. The Rupee had made a similar showing after news of the staff-level agreement between the government and delegates of the International Monetary Fund (IMF) a few weeks ago.

The upsurge of the Rupee against the Dollar continued on Tuesday with the local currency gaining shape as compared to the previous close on the back of an improved supply of hard currency and positive investor sentiments. Added to the usual sentiments of the exchange ledger, perhaps an even bigger driver of a considerable and vertical change is the deposit agreement between the Kingdom of Saudi Arabia and the Government of Pakistan.

The Saudi Fund for Development (SFD) will place a deposit of $3 billion with the State Bank of Pakistan (SBP) under the deposit agreement. The deposit amount under the agreement will become part of the SBP’s Foreign Exchange Reserves and will help support Pakistan’s foreign currency reserves, support the Rupee, and facilitate the resolution of the adverse effects of the pandemic.

The former Treasury Head of Chase Manhattan Bank, Asad Rizvi, tweeted about today’s inter-bank performance earlier during open trade.

The PKR made an impressive showing against most of the other major currencies as well and posted gains in the interbank currency market today.

It gained 92 paisas against the Canadian Dollar (CAD), 73 paisas against the Australian Dollar (AUD), 71 paisas against the Pound Sterling (GBP), and nine paisas against the Chinese Yuan (CNY).

It also posted gains of 13 paisas against both the UAE Dirham (AED) and Saudi Riyal (SAR).

Conversely, it continued its bad run against the Euro (EUR) and lost 48 paisas in the inter-bank currency market today, closing at Rs. 199 against the eurozone currency.

Source: Pro Pakistani