Kianig89
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be it Dar's jealousy or what but Miftah admitting PTI were progressing no where to hide for illiterate patwaris
-
Contact the PP Team
Pakistan economy under the PDM government & now the caretaker administration
- Thread starter MenInG
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The inflation rate in the country soared to 13.8% in May -- the highest pace in nearly two-and-a-half years -- because of an exponential growth in the prices of perishable food and transport groups, the Pakistan Bureau of Statistics (PBS) reported on Wednesday.
The pace of increase in the prices was in line with the finance ministry’s forecast but lower than the market expectations that saw the reading hitting 14.5%.
The decision to use the average Rs980 per 20 kg bag of wheat flour price, which was based on same minimum and maximum rate almost across Punjab, particularly in Lahore, might have played a role in relatively low inflation reading of 13.8% last month.
The PBS had used these rates in the last Sensitive Price Index, which had a reflection on the monthly inflation date.
The core inflation being calculated after excluding the volatile energy and food prices also jumped to 11.5% last month in rural areas -- signalling a price growth gathering pace across most categories of goods and services.
The PBS reported that the 13.8% rate was the highest pace since January 2020 when the inflation was recorded at 14.6%.
It was the first reading that the national data collecting agency reported after Prime Minister Shehbaz Sharif allowed the government to increase fuel prices by Rs30 per litre or up to 25.4% on May 26. Another round of increase in fuel prices is expected to pave the way for the revival of the International Monetary Fund (IMF) loan programme.
The inflation rate for communication groups has increased to nearly one-third in May.
A day earlier, the IMF had again said Pakistan needed to immediately withdraw subsidy on petrol and energy to repair damaged macroeconomic stability.
Overall, out of 12 groups of various goods and services, the inflation rate for 10 of them remained in double digits. This indicates that the inflation web has spread across almost all the commodities.
The PBS reported that CPI-based inflation rate increased to 12.4% in urban areas and 15.9% in villages and towns. The constant double-digit inflation in the country has adversely affected the people’s purchasing power.
The overall price growth remained in double digit because of an increase in the rates of food items, which were taxed by the last government.
The pace of food inflation slightly decelerated to 15.5% in cities and but skyrocketed to 19% in villages and towns last month, according to the PBS.
The prices of both non-perishable and perishable food products increased significantly last month. The food group prices surged over 17.3% in May in comparison with the same month a year ago. The PBS said the prices of perishable food items increased by 26.4%.
Read Food inflation rises unchecked
The average price of wheat flour in Lahore has touched Rs1,082 and to Rs1,288 in Islamabad, showing for the first time a difference of Rs206 per 20 kg bag.
While reporting the Sensitive Price Index last week, the PBS used minimum and maximum Rs980 per 20 kg wheat flour price for all cities of Punjab except Rawalpindi where minimum was same but maximum was Rs1,352 per bag.
This suggested that in Rawalpindi, the gap of 20 kg bag was Rs372 in the same city.
Earlier on May 12 and in other weeks, the prices in Punjab were shown between Rs1,300 to Rs1,400 per 20 kg bag.
The PBS reported that CPI-measured non-food inflation increased by 10.4% in urban areas and 13.1% in rural areas.
The core inflation – calculated after excluding food and energy goods – jumped by 9.7% in urban areas and 11.5% in rural areas.
The State Bank of Pakistan last month further increased the key policy rate to 13.75% to curb the spiralling inflation and correct external sector imbalances. The central bank has so far failed to contain the inflation despite almost doubling the interest rates.
The prices of all essential products seem to be slipping out of the control of the authorities, particularly the crucial kitchen items like edible oil.
The prices of tomatoes were higher by 162% last month in comparison with the same period a year ago, followed by a 153% increase in the rates of onions and over 60% of various types of ghee and cooking oil, according to the PBS.
The prices of pulses increased by nearly half and meat and vegetables by one-fourth last month in comparison with a year ago.
The rates of liquefied hydrocarbons doubled in May against a year ago, followed by 44% growth in petrol prices and 20% in prices of cars.
However, the electricity was 11% cheaper last month in comparison with a year ago due to the Rs5 per unit subsidy that the IMF now wants to withdraw.
The average inflation during the first 11 months (July-May) remained in double digits and shot to 11.3% -- far higher than the government’s target of 8% and the initial projection made by the SBP.
Express Tribune
The pace of increase in the prices was in line with the finance ministry’s forecast but lower than the market expectations that saw the reading hitting 14.5%.
The decision to use the average Rs980 per 20 kg bag of wheat flour price, which was based on same minimum and maximum rate almost across Punjab, particularly in Lahore, might have played a role in relatively low inflation reading of 13.8% last month.
The PBS had used these rates in the last Sensitive Price Index, which had a reflection on the monthly inflation date.
The core inflation being calculated after excluding the volatile energy and food prices also jumped to 11.5% last month in rural areas -- signalling a price growth gathering pace across most categories of goods and services.
The PBS reported that the 13.8% rate was the highest pace since January 2020 when the inflation was recorded at 14.6%.
It was the first reading that the national data collecting agency reported after Prime Minister Shehbaz Sharif allowed the government to increase fuel prices by Rs30 per litre or up to 25.4% on May 26. Another round of increase in fuel prices is expected to pave the way for the revival of the International Monetary Fund (IMF) loan programme.
The inflation rate for communication groups has increased to nearly one-third in May.
A day earlier, the IMF had again said Pakistan needed to immediately withdraw subsidy on petrol and energy to repair damaged macroeconomic stability.
Overall, out of 12 groups of various goods and services, the inflation rate for 10 of them remained in double digits. This indicates that the inflation web has spread across almost all the commodities.
The PBS reported that CPI-based inflation rate increased to 12.4% in urban areas and 15.9% in villages and towns. The constant double-digit inflation in the country has adversely affected the people’s purchasing power.
The overall price growth remained in double digit because of an increase in the rates of food items, which were taxed by the last government.
The pace of food inflation slightly decelerated to 15.5% in cities and but skyrocketed to 19% in villages and towns last month, according to the PBS.
The prices of both non-perishable and perishable food products increased significantly last month. The food group prices surged over 17.3% in May in comparison with the same month a year ago. The PBS said the prices of perishable food items increased by 26.4%.
Read Food inflation rises unchecked
The average price of wheat flour in Lahore has touched Rs1,082 and to Rs1,288 in Islamabad, showing for the first time a difference of Rs206 per 20 kg bag.
While reporting the Sensitive Price Index last week, the PBS used minimum and maximum Rs980 per 20 kg wheat flour price for all cities of Punjab except Rawalpindi where minimum was same but maximum was Rs1,352 per bag.
This suggested that in Rawalpindi, the gap of 20 kg bag was Rs372 in the same city.
Earlier on May 12 and in other weeks, the prices in Punjab were shown between Rs1,300 to Rs1,400 per 20 kg bag.
The PBS reported that CPI-measured non-food inflation increased by 10.4% in urban areas and 13.1% in rural areas.
The core inflation – calculated after excluding food and energy goods – jumped by 9.7% in urban areas and 11.5% in rural areas.
The State Bank of Pakistan last month further increased the key policy rate to 13.75% to curb the spiralling inflation and correct external sector imbalances. The central bank has so far failed to contain the inflation despite almost doubling the interest rates.
The prices of all essential products seem to be slipping out of the control of the authorities, particularly the crucial kitchen items like edible oil.
The prices of tomatoes were higher by 162% last month in comparison with the same period a year ago, followed by a 153% increase in the rates of onions and over 60% of various types of ghee and cooking oil, according to the PBS.
The prices of pulses increased by nearly half and meat and vegetables by one-fourth last month in comparison with a year ago.
The rates of liquefied hydrocarbons doubled in May against a year ago, followed by 44% growth in petrol prices and 20% in prices of cars.
However, the electricity was 11% cheaper last month in comparison with a year ago due to the Rs5 per unit subsidy that the IMF now wants to withdraw.
The average inflation during the first 11 months (July-May) remained in double digits and shot to 11.3% -- far higher than the government’s target of 8% and the initial projection made by the SBP.
Express Tribune
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Moody’s on Thursday affirmed the Government of Pakistan’s B3 local and foreign currency issuer and senior unsecured debt ratings and changed the outlook to negative from stable.
The credit rating agency said in a statement that the decision to change the outlook to negative is driven by Pakistan’s heightened external vulnerability risk and uncertainty around the sovereign’s ability to secure additional external financing to meet its needs.
Moody’s assesses that Pakistan’s external vulnerability risk has been amplified by rising inflation, which puts downward pressure on the current account, the currency and – already thin – foreign exchange reserves, especially in the context of heightened political and social risk. Pakistan’s weak institutions and governance strength adds uncertainty around the future direction of macroeconomic policy, including whether the country will complete the current IMF Extended Fund Facility (EFF) programme and maintain a credible policy path that supports further financing.
The decision to affirm the B3 rating reflects Moody’s assumption that, notwithstanding the downside risks mentioned above, Pakistan will conclude the seventh review under the IMF EFF programme by the second half of this calendar year, and will maintain its engagement with the IMF, leading to additional financing from other bilateral and multilateral partners. In this case, Moody’s assesses that Pakistan will be able to close its financing gap for the next couple of years. The B3 rating also incorporates Moody’s assessment of the scale of Pakistan’s economy and robust growth potential, which will provide the economy with some capacity to absorb shocks. These credit strengths are balanced against Pakistan’s fragile external payments position, weak governance and very weak fiscal strength, including very weak debt affordability.
The B3 rating affirmation also applies to the backed foreign currency senior unsecured ratings for The Third Pakistan International Sukuk Co Ltd and The Pakistan Global Sukuk Programme Co Ltd. The associated payment obligations are, in Moody’s view, direct obligations of the Government of Pakistan.
Concurrent to today’s action, Pakistan’s local and foreign currency country ceilings have been lowered to B1 and B3, from Ba3 and B2, respectively. The two-notch gap between the local currency ceiling and sovereign rating is driven by the government’s relatively large footprint in the economy, weak institutions, and relatively high political and external vulnerability risk.
The two-notch gap between the foreign currency ceiling and the local currency ceiling reflects incomplete capital account convertibility and relatively weak policy effectiveness, which point to material transfer and convertibility risks notwithstanding moderate external debt.
RATIONALE
Moody’s expects Pakistan’s current account to remain under significant pressure, on the back of elevated global commodity prices through 2022 and 2023. Pakistan’s current account deficit has widened to a cumulative $13.8 billion since the start of the current fiscal year in July 2021 up until April 2022, compared to a deficit of $543 million in the same period a year earlier.
In the absence of an equivalent inflow in the financial account, the rapid widening of the current account deficit has led to a large drawdown of the foreign exchange reserves. According to data from the IMF, Pakistan’s foreign exchange reserves have declined to $9.7 billion at the end of April 2022, which is sufficient to cover less than two months of imports. This compares with the $18.9 billion of reserves at the end of July 2021.
Moody’s projects the current account deficit to come in at 4.5-5% of GDP for fiscal 2022 (ending June 2022), slightly wider than the government’s expectations. As global commodity prices decline gradually in 2023 and as domestic demand moderates, Moody’s expects the current account deficit to narrow to 3.5-4% of GDP. Moody’s current account deficit forecasts are higher than previous (early February 2022) projections of 4% and 3% for fiscal 2022 and 2023, respectively.
The larger current account deficits underscore the need for Pakistan to secure additional external financing, especially given its very low foreign exchange reserves. Pakistan is in negotiations with the IMF on the seventh review of the EFF programme.
Moody’s expects Pakistan to successfully conclude the review by the second half of the year, with the associated IMF financing to be disbursed then. Conclusion of the seventh review, and further engagement with the IMF, will also help Pakistan secure financing from other bilateral and multilateral partners. In this scenario, Moody’s expects Pakistan to be able to fully meet its external obligations for the next couple of years.
However, Moody’s assesses that the balance of risks is on the downside. An agreement with IMF could take longer than expected, as the government may find it difficult to reduce fuel and power subsidies given rising inflation. Recent moves by the government to raise fuel prices signal its commitment to addressing issues raised by the IMF. Still, political and social challenges will complicate the government’s efforts to agree on and implement further reforms, such as revenue raising reforms. While not Moody’s baseline scenario, if Pakistan is unable to secure additional financing later this year, foreign exchange reserves will continue to be drawn down from already very low levels, increasing the risk of a balance of payments crisis.
HEIGHTENED POLITICAL RISK CHALLENGES THE STABILITY AND PREDICTABILITY OF POLICYMAKING
As mentioned above, Pakistan’s rising external vulnerability risk has been amplified by rising inflation, particularly in the context of heightened political and social risks. In April 2022, inflation reached 13.4% year-on-year, with particularly high inflation in food and energy which account for a very large share of the most vulnerable households’ budgets.
Moody’s assesses that political uncertainty in Pakistan remains high, even after the new government has been installed. The new ruling coalition comprises of multiple political parties with divergent interests, which is likely to make the enactment of any legislation difficult, including those related to reforms under the IMF EFF programme. Moreover, the next elections are due by the middle of 2023. In Moody’s view, political parties will find it difficult to continually enact significant revenue-raising measures in the run-up to the elections, especially in a high inflation environment.
Rising interest rates are also likely to increasingly constrain the government’s policy choices, especially since interest payments already absorb more than 40% of revenue.
Meanwhile, domestic political risk has also risen with a higher frequency of terrorist attacks over the last year. According to the Pak Institute for Peace Studies think-tank, the number of terrorist attacks increase 42% in 2021 compared to a year ago. More frequent terrorist attacks add to safety concerns, which may increase social risks, as well as constrain business conditions and limit investment.
Moody’s assesses that there is a material probability of a recurrence in domestic political stress that will impinge on the effectiveness of policymaking and the government’s ability to implement timely economic reforms aimed at achieving macroeconomic stability.
ARY
The credit rating agency said in a statement that the decision to change the outlook to negative is driven by Pakistan’s heightened external vulnerability risk and uncertainty around the sovereign’s ability to secure additional external financing to meet its needs.
Moody’s assesses that Pakistan’s external vulnerability risk has been amplified by rising inflation, which puts downward pressure on the current account, the currency and – already thin – foreign exchange reserves, especially in the context of heightened political and social risk. Pakistan’s weak institutions and governance strength adds uncertainty around the future direction of macroeconomic policy, including whether the country will complete the current IMF Extended Fund Facility (EFF) programme and maintain a credible policy path that supports further financing.
The decision to affirm the B3 rating reflects Moody’s assumption that, notwithstanding the downside risks mentioned above, Pakistan will conclude the seventh review under the IMF EFF programme by the second half of this calendar year, and will maintain its engagement with the IMF, leading to additional financing from other bilateral and multilateral partners. In this case, Moody’s assesses that Pakistan will be able to close its financing gap for the next couple of years. The B3 rating also incorporates Moody’s assessment of the scale of Pakistan’s economy and robust growth potential, which will provide the economy with some capacity to absorb shocks. These credit strengths are balanced against Pakistan’s fragile external payments position, weak governance and very weak fiscal strength, including very weak debt affordability.
The B3 rating affirmation also applies to the backed foreign currency senior unsecured ratings for The Third Pakistan International Sukuk Co Ltd and The Pakistan Global Sukuk Programme Co Ltd. The associated payment obligations are, in Moody’s view, direct obligations of the Government of Pakistan.
Concurrent to today’s action, Pakistan’s local and foreign currency country ceilings have been lowered to B1 and B3, from Ba3 and B2, respectively. The two-notch gap between the local currency ceiling and sovereign rating is driven by the government’s relatively large footprint in the economy, weak institutions, and relatively high political and external vulnerability risk.
The two-notch gap between the foreign currency ceiling and the local currency ceiling reflects incomplete capital account convertibility and relatively weak policy effectiveness, which point to material transfer and convertibility risks notwithstanding moderate external debt.
RATIONALE
Moody’s expects Pakistan’s current account to remain under significant pressure, on the back of elevated global commodity prices through 2022 and 2023. Pakistan’s current account deficit has widened to a cumulative $13.8 billion since the start of the current fiscal year in July 2021 up until April 2022, compared to a deficit of $543 million in the same period a year earlier.
In the absence of an equivalent inflow in the financial account, the rapid widening of the current account deficit has led to a large drawdown of the foreign exchange reserves. According to data from the IMF, Pakistan’s foreign exchange reserves have declined to $9.7 billion at the end of April 2022, which is sufficient to cover less than two months of imports. This compares with the $18.9 billion of reserves at the end of July 2021.
Moody’s projects the current account deficit to come in at 4.5-5% of GDP for fiscal 2022 (ending June 2022), slightly wider than the government’s expectations. As global commodity prices decline gradually in 2023 and as domestic demand moderates, Moody’s expects the current account deficit to narrow to 3.5-4% of GDP. Moody’s current account deficit forecasts are higher than previous (early February 2022) projections of 4% and 3% for fiscal 2022 and 2023, respectively.
The larger current account deficits underscore the need for Pakistan to secure additional external financing, especially given its very low foreign exchange reserves. Pakistan is in negotiations with the IMF on the seventh review of the EFF programme.
Moody’s expects Pakistan to successfully conclude the review by the second half of the year, with the associated IMF financing to be disbursed then. Conclusion of the seventh review, and further engagement with the IMF, will also help Pakistan secure financing from other bilateral and multilateral partners. In this scenario, Moody’s expects Pakistan to be able to fully meet its external obligations for the next couple of years.
However, Moody’s assesses that the balance of risks is on the downside. An agreement with IMF could take longer than expected, as the government may find it difficult to reduce fuel and power subsidies given rising inflation. Recent moves by the government to raise fuel prices signal its commitment to addressing issues raised by the IMF. Still, political and social challenges will complicate the government’s efforts to agree on and implement further reforms, such as revenue raising reforms. While not Moody’s baseline scenario, if Pakistan is unable to secure additional financing later this year, foreign exchange reserves will continue to be drawn down from already very low levels, increasing the risk of a balance of payments crisis.
HEIGHTENED POLITICAL RISK CHALLENGES THE STABILITY AND PREDICTABILITY OF POLICYMAKING
As mentioned above, Pakistan’s rising external vulnerability risk has been amplified by rising inflation, particularly in the context of heightened political and social risks. In April 2022, inflation reached 13.4% year-on-year, with particularly high inflation in food and energy which account for a very large share of the most vulnerable households’ budgets.
Moody’s assesses that political uncertainty in Pakistan remains high, even after the new government has been installed. The new ruling coalition comprises of multiple political parties with divergent interests, which is likely to make the enactment of any legislation difficult, including those related to reforms under the IMF EFF programme. Moreover, the next elections are due by the middle of 2023. In Moody’s view, political parties will find it difficult to continually enact significant revenue-raising measures in the run-up to the elections, especially in a high inflation environment.
Rising interest rates are also likely to increasingly constrain the government’s policy choices, especially since interest payments already absorb more than 40% of revenue.
Meanwhile, domestic political risk has also risen with a higher frequency of terrorist attacks over the last year. According to the Pak Institute for Peace Studies think-tank, the number of terrorist attacks increase 42% in 2021 compared to a year ago. More frequent terrorist attacks add to safety concerns, which may increase social risks, as well as constrain business conditions and limit investment.
Moody’s assesses that there is a material probability of a recurrence in domestic political stress that will impinge on the effectiveness of policymaking and the government’s ability to implement timely economic reforms aimed at achieving macroeconomic stability.
ARY
Abstraction1
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Shambolic.
PDM Cultists too blind to see how ridiculous is it having a two families treating Pakistan has their fiefdom.
PDM Cultists too blind to see how ridiculous is it having a two families treating Pakistan has their fiefdom.
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<blockquote class="twitter-tweet" data-partner="tweetdeck"><p lang="en" dir="ltr">Those who conspired to topple our govt had no plans to deal with the economy. Their main priority was to give themselves NRO2 (immunity from their corruption cases), rig elections; destroy state institutions with their goons & crush opposition thru FIRs & state power. <a href="https://t.co/Fp7UjDX1FY">pic.twitter.com/Fp7UjDX1FY</a></p>— Imran Khan (@ImranKhanPTI) <a href="https://twitter.com/ImranKhanPTI/status/1532408252444688388?ref_src=twsrc%5Etfw">June 2, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<blockquote class="twitter-tweet" data-partner="tweetdeck"><p lang="en" dir="ltr">This cabal of crooks poses a far more serious threat to Pakistan than any of our external enemies.</p>— Imran Khan (@ImranKhanPTI) <a href="https://twitter.com/ImranKhanPTI/status/1532408256500576256?ref_src=twsrc%5Etfw">June 2, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<blockquote class="twitter-tweet" data-partner="tweetdeck"><p lang="en" dir="ltr">This cabal of crooks poses a far more serious threat to Pakistan than any of our external enemies.</p>— Imran Khan (@ImranKhanPTI) <a href="https://twitter.com/ImranKhanPTI/status/1532408256500576256?ref_src=twsrc%5Etfw">June 2, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Syed1
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Petrol prices increased by Rs. 60 in the last two weeks. Electricity tariff increased by Rs 8/unit. Subsidies removed from utility store.
This is karma for people like [MENTION=135038]Major[/MENTION] and [MENTION=131701]Mamoon[/MENTION] now enjoy your true mehngayi.
This is karma for people like [MENTION=135038]Major[/MENTION] and [MENTION=131701]Mamoon[/MENTION] now enjoy your true mehngayi.
Bewal Express
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Kaptaan hit the nail on the head. The incompetent imports have about much clue as their idiotic supporters.
Bewal Express
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[MENTION=131701]Mamoon[/MENTION] [MENTION=135038]Major[/MENTION]
Boys this is a "proper PM" always on holiday
Boys this is a "proper PM" always on holiday
Abstraction1
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Spot on.
As usual Cultists like [MENTION=131701]Mamoon[/MENTION] and [MENTION=135038]Major[/MENTION] will dip, deflect and hide behind rhetoric.
I'm sure Shehbaz will write his response on a piece of paper and reply in broken English.
Abstraction1
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I love how [MENTION=131701]Mamoon[/MENTION] and [MENTION=135038]Major[/MENTION] scurry around like rodents when trying pin Pakistan's issues on PTI's 3 years in power, but pretend the 3 decades before that didn't happen.
They'll happily bury their heads under the sand when you mention their dear leader being a convicted felon and their families having a catalogue of criminal charges against them.
Cult
They'll happily bury their heads under the sand when you mention their dear leader being a convicted felon and their families having a catalogue of criminal charges against them.
Cult
Bewal Express
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The imports have crashed an economy that was growing at 6%.
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Factories in the commercial capital of Pakistan are warning that they may need to shut production due to sky-high energy costs, another blow to the nation’s fledgling economy <a href="https://t.co/YvfEvhL8yQ">https://t.co/YvfEvhL8yQ</a></p>— Bloomberg Asia (@BloombergAsia) <a href="https://twitter.com/BloombergAsia/status/1532399357235970049?ref_src=twsrc%5Etfw">June 2, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Factories in the commercial capital of Pakistan are warning that they may need to shut production due to sky-high energy costs, another blow to the nation’s fledgling economy <a href="https://t.co/YvfEvhL8yQ">https://t.co/YvfEvhL8yQ</a></p>— Bloomberg Asia (@BloombergAsia) <a href="https://twitter.com/BloombergAsia/status/1532399357235970049?ref_src=twsrc%5Etfw">June 2, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Major
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Imran policies that have caused this spiral out of control....
Major
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Atleast the party i support doesnt have a leader who can be hanged for violating the constitution unlike someone else.
Bewal Express
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Stop talking rubbish-Nobody violated the constitution. Your a chump that follows Noora twitter accounts and repeats rubbish on here. Remember you said that IK asked for a NRO but when challenged you ran away like you always do.
GoUgandaCranes
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Intellectual dishonesty is their favorite tool of choice so no amount of contrary evidence to it will change their opinion towards anything. This is the reason I've decided to never engage with them because the level of discourse is akin to going through Whatsapp forwards from the boomer uncles within the family. There's a lot that was wrong (and is wrong) with PTI, and I mean a lot, but the points that were deliberated upon were bottom-tier mind-numbing nothingness that only shows the intellectual capacity of the person discussing them if anything. The pandering to delve into contrarian views and positive reinforcement from the neighbors were in my opinion the primary drivers behind the debates in the past as well as the future ones that are to be had.
The causality-based rationale for policy making that engages in merit and demerit of management decisions, the implications of difficult decisions in the present that may or may not lead to future benefits, and any other thing would be welcome as a debate. Unfortunately, all we have is "I will take the exact opposite opinion because IK said so", "you said so because you are a cult". & "insert anything that Sethi is parroting" is the best that we can have from these posters. Note, I said posters and not people deliberately because I'm well aware that the posting on a cricket forum does not define the full spectrum personality of a person and I mean no disrespect to these people at all. Deep down, I'm sure that this does not reflect on the posters, I feel they just like to post stuff at that level because maybe at least one of them still gets a massive kick from the engagement that they manage and it still continues to give their ego a boost. I've another justification for this as well, but I'd rather keep that to myself.
Bewal Express
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You mean like 6% growth for 2 years running, exports up by 30%, textile industry revived, IT industry doubling exports, imports down, tax collection up by 60%, agricultural production and income up, LSM at record levels, big dams being built and will reduce cost of electricity. Terrible man
Bewal Express
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Did IK put up petrol up 60 rps in a week and that's just the start. Did IK spend billions on ads in 6 weeks, did IK meet absconders with 54 others in Turkey?
Last edited by a moderator:
GoUgandaCranes
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I'll give an example of what I stated above
- There was a massive hue and cry that Imran Khan used a helicopter for his daily commute. The minister of info even came up with some numbers and without even discrediting the numbers and saying they were all valid, I'll break up the argument. The PM's travel expense is budgeted in the expenses of the PM house and it's on record that the austerity measures worked and the yearly cost of the PM house was reduced. So despite using a helicopter, the overall impact was that PM house expenses were lower than the last year.
- The other uglier side of the argument is that the current CM of Punjab is traveling around in a convoy of 40 or so cars where ever he's going. It's the same with Zardari who's just a plain MNA and nothing more but he travels with a squad of almost 50 vehicles wherever he goes. The cost of running this convoy can be roughly calculated as
a. Fuel cost - most vehicles are 4 by 4 which means the cars take 1 liter per 5 or so km. Running the convoy for 100 km means that 20 liters or so of diesel per car would be needed. That's approximately 800 liters of diesel.
b. Add the cost of salaries of 40 drivers plus security staff plus medical staff that has to accompany the convoy.
c. Add the cost of putting routes and stopping local traffic. That's not even possible to calculate but you may need to stop something like 3,000+ plus vehicles each for about 10-15 minutes accumulating to almost 40,000 man-hours as well as fuel that is burnt for no reason.
d. The routes and blockades may or may not lead to patients and people suffering from medical emergencies and any loss of life simply has no monetary value.
e. So basically just for a 100 KM trip, the costs will be approx 1,000 liters of diesel + 100 plus staff salary/duration of the 100 KM journey + cost to the society will actually be a much bigger cost than first envisaged.
All we will have though will be, "jo bura kia hai IK nay kia hai" - and end topic. Pretty meaningless if you ask me to engage in any positive discourse.
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Pakistan’s merchandise trade deficit widened by an alarming 57.85 per cent year-on-year to an all-time high at $43.33 billion during the first 11 months of 2021-22 through May on the back of higher-than-expected imports, Pakistan Bureau of Statistics data showed on Thursday.
The 11-month deficit has already crossed the full year’s highest trade deficit of $37bn in 2018 when the PML-N government came to an end, mostly led by the China-Pakistan Economic Corridor-related imports. This year’s trade deficit is propelled by the highest ever increase in oil prices in the international market.
The trade deficit has been on the rise owing to an unprecedented increase in imports due to a rise in global commodity prices, while exports stagnated at around $2.5bn to $2.8bn a month, mostly those of semi-finished products and raw materials.
In May, the trade deficit came in at $4.04bn, growing by around 6.90pc over April and by 11.50pc compared to May 2021.
The trade deficit reached an all-time high of $37.7bn in the 2017-18 fiscal year. However, the government’s measures led to a drop in it to $31.8bn the next year (2018-19) and then a further decline to $23.2bn in 2019-20.
However, the trend then reversed and the trade gap jumped to $30.8bn in the 2020-21 fiscal year and is expected to reach an all-time high during the ongoing fiscal year.
Import bill rises
The import bill increased 44.28pc to $72.18bn during the first 11 months of this fiscal year (July to May), up from $50.02bn during the same period last year.
In May alone, the import bill edged up to $6.64bn from $5.29bn over the same month last year, reflecting an increase of around 25.43pc. Imports decreased by 0.52pc month-on-month (MoM) in May.
The government imposed a ban on the import of nearly 800 luxury and non-essential goods on May 19. The real impact of this decision will be visible in the ongoing month.
A major initiative of the government to encourage raw material imports and rising global oil prices and high demand at home pushed up the import bill.
A surge was also noted in the import of vehicles, machinery, and vaccines. The government is also importing wheat, sugar and costly palm oil. The import bill increased by 26pc to $56 billion in the 2020–21 fiscal year, up from $44.6 billion the previous year.
Exports pick up
Exports increased 27.78pc from July to May to $28.84bn, up from $22.57bn in the same period last year. Exports increased by 55.66pc to $2.60bn in May, up from $1.67bn the previous year.
Exports decreased by 10.22pc MoM in May. The government has projected the annual export target for commodities at $31.2bn and services at $7.5bn.
The export proceeds in June are expected to be in the range of more than $2.6bn which will help the government to achieve its target.
Export earnings increased by 18pc to $25.3bn in 2020-21, up from $21.4bn the previous year.
According to the finance ministry’s monthly economic update and outlook for May, exports of goods and services remained strong in April 2022 and it is expected that this positive trend will continue in May 2022 on the back of export-oriented policies and growth recovery in Pakistan’s main export partners.
On an MoM basis, the growth in imports of goods is expected to be negative due to the ban on non-essential and luxury items.
Since mid-2021, the share of imports of goods and services in total domestic activity has stabilised at historically high levels. The upward shift in international commodity prices and international inflation, in general, played a major role in this development.
In the coming months, it is expected that the import content of domestic growth will subside somewhat, backed by restrictions on unnecessary imports. Furthermore, slower potential economic growth in the coming months may reduce the import bill.
Moreover, remittances are expected to be around $2.5bn. Taking these factors into account, the current account will stay well below $1bn in the coming months.
Published in Dawn, June 3rd, 2022
The 11-month deficit has already crossed the full year’s highest trade deficit of $37bn in 2018 when the PML-N government came to an end, mostly led by the China-Pakistan Economic Corridor-related imports. This year’s trade deficit is propelled by the highest ever increase in oil prices in the international market.
The trade deficit has been on the rise owing to an unprecedented increase in imports due to a rise in global commodity prices, while exports stagnated at around $2.5bn to $2.8bn a month, mostly those of semi-finished products and raw materials.
In May, the trade deficit came in at $4.04bn, growing by around 6.90pc over April and by 11.50pc compared to May 2021.
The trade deficit reached an all-time high of $37.7bn in the 2017-18 fiscal year. However, the government’s measures led to a drop in it to $31.8bn the next year (2018-19) and then a further decline to $23.2bn in 2019-20.
However, the trend then reversed and the trade gap jumped to $30.8bn in the 2020-21 fiscal year and is expected to reach an all-time high during the ongoing fiscal year.
Import bill rises
The import bill increased 44.28pc to $72.18bn during the first 11 months of this fiscal year (July to May), up from $50.02bn during the same period last year.
In May alone, the import bill edged up to $6.64bn from $5.29bn over the same month last year, reflecting an increase of around 25.43pc. Imports decreased by 0.52pc month-on-month (MoM) in May.
The government imposed a ban on the import of nearly 800 luxury and non-essential goods on May 19. The real impact of this decision will be visible in the ongoing month.
A major initiative of the government to encourage raw material imports and rising global oil prices and high demand at home pushed up the import bill.
A surge was also noted in the import of vehicles, machinery, and vaccines. The government is also importing wheat, sugar and costly palm oil. The import bill increased by 26pc to $56 billion in the 2020–21 fiscal year, up from $44.6 billion the previous year.
Exports pick up
Exports increased 27.78pc from July to May to $28.84bn, up from $22.57bn in the same period last year. Exports increased by 55.66pc to $2.60bn in May, up from $1.67bn the previous year.
Exports decreased by 10.22pc MoM in May. The government has projected the annual export target for commodities at $31.2bn and services at $7.5bn.
The export proceeds in June are expected to be in the range of more than $2.6bn which will help the government to achieve its target.
Export earnings increased by 18pc to $25.3bn in 2020-21, up from $21.4bn the previous year.
According to the finance ministry’s monthly economic update and outlook for May, exports of goods and services remained strong in April 2022 and it is expected that this positive trend will continue in May 2022 on the back of export-oriented policies and growth recovery in Pakistan’s main export partners.
On an MoM basis, the growth in imports of goods is expected to be negative due to the ban on non-essential and luxury items.
Since mid-2021, the share of imports of goods and services in total domestic activity has stabilised at historically high levels. The upward shift in international commodity prices and international inflation, in general, played a major role in this development.
In the coming months, it is expected that the import content of domestic growth will subside somewhat, backed by restrictions on unnecessary imports. Furthermore, slower potential economic growth in the coming months may reduce the import bill.
Moreover, remittances are expected to be around $2.5bn. Taking these factors into account, the current account will stay well below $1bn in the coming months.
Published in Dawn, June 3rd, 2022
Couch Cricketer
First Class Star
- Joined
- Oct 31, 2007
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- 3,512
I have always maintained that PMLN apart from being corrupt are also incompetent. The last 2 months show how tough a situation IK and PTI were facing but they were managing. With the electricity and petrol prices increased so much it is going to stop economic growth maybe even push us into a recession.
Kriketer
First Class Captain
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- Jan 14, 2007
- Runs
- 4,895
But you told us the moment PDM ll take charge it will be all rosey and prosperous? Now we all can see how your beloved leaders have no clue about running a country and are running around like headless chickens.
We understand it must be extremely embarrassing for your likes to admit absolute incompetence of your corrupt choor party. Anyone who is running/supporting lifafa-under the table business in Pakistan supports these clowns, it is fun seeing PDM supporters eating up their words facing embarrassment from all corners. Because of your likes Pakistan suffers. Keep up with supporting choor family dynasty in a democracy, ghulam in every sense is what your types are.
- Joined
- Oct 2, 2004
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- 217,479
No point singling out people - the whole PDM premise was based upon criticism of IK's policies and their claim that they will resolve the issues by NOT putting pressure on the common man
See this:
<blockquote class="twitter-tweet"><p lang="ur" dir="rtl">ایک ہفتے میں پٹرول کی قیمت میں 60روپے فی لیٹر اضافے پر <br>احسن اقبال کی مٹھی مٹھی چھترول ۔<br>معجزہ یہ ہوا کہ یہ سب کُچھ جیو پر ہوا<a href="https://twitter.com/hashtag/%D8%A7%D9%85%D9%BE%D9%88%D8%B1%D9%B9%DA%88_%D8%AD%DA%A9%D9%88%D9%85%D8%AA_%D9%86%D8%A7%D9%85%D9%86%D8%B8%D9%88%D8%B1?src=hash&ref_src=twsrc%5Etfw">#امپورٹڈ_حکومت_نامنظور</a> <a href="https://t.co/Xy9fG2vpNc">pic.twitter.com/Xy9fG2vpNc</a></p>— S͜͡Yᗴᗪ B͜͡ᑌKᕼᗩᖇI (@LalBukhari) <a href="https://twitter.com/LalBukhari/status/1532438811094962198?ref_src=twsrc%5Etfw">June 2, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
- Joined
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- 217,479
From a learned friend of mine....
Never seen the media so happy about price increases - they are all focused on what IK will or will not do or government's plans for putting him in jail. The situation right now is only the tip of the iceberg. This year we have a drought and severely reduced river flow. Generally in May canals are in full flow - right now there is little canal water. That leaves pumping ground water - but with high electricity and diesel rates most farmers are finding it impossible to meet watering requirements. Fertilizer supply is short and at twice the rate of last year - so there is reduced fertilizer usage. And to compound it all the last three years has see no increase in sale price of key crops - so depletion of rural working capital. This year we are importing wheat at Rs. 4500/maund and paying local farmers Rs. 2200 for their crop. 2022 is the year the net calorie production of the world fall below the net calorie demand so the commodity pricing cycle is going to keep rising up until some new technology helps to offset the gap. And in this cycle our crop production is going to dip while adding another 2 million to our population. Its a perfect storm.
Never seen the media so happy about price increases - they are all focused on what IK will or will not do or government's plans for putting him in jail. The situation right now is only the tip of the iceberg. This year we have a drought and severely reduced river flow. Generally in May canals are in full flow - right now there is little canal water. That leaves pumping ground water - but with high electricity and diesel rates most farmers are finding it impossible to meet watering requirements. Fertilizer supply is short and at twice the rate of last year - so there is reduced fertilizer usage. And to compound it all the last three years has see no increase in sale price of key crops - so depletion of rural working capital. This year we are importing wheat at Rs. 4500/maund and paying local farmers Rs. 2200 for their crop. 2022 is the year the net calorie production of the world fall below the net calorie demand so the commodity pricing cycle is going to keep rising up until some new technology helps to offset the gap. And in this cycle our crop production is going to dip while adding another 2 million to our population. Its a perfect storm.
- Joined
- Oct 2, 2004
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- 217,479
- Joined
- Oct 2, 2004
- Runs
- 217,479
Abstraction1
Debutant
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- Mar 29, 2022
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- 236
I thought Shehbaz was going to beg his way to getting Pakistan wealthy again?
What's going on?
Major
T20I Star
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- Aug 28, 2013
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- 32,113
- Post of the Week
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The fb page from where you got this is pro imran..
Swvl is not shutting down due to petrol prices. It had a a very stupid business model with uncertainity of whether they would make a profit or not.
Swvl is operating as b2b and not b2c anymore
Technics 1210
Test Debutant
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- Feb 27, 2019
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- 14,170
40,000 Factories At Risk Of Closing In Pakistan's Commercial Capital Amid Fuel Crisis
Pakistan faces potential economic collapse as inflation jumps and widespread civil unrest could be nearing. The latest sign the South Asian country is spiraling into the abyss is rising electricity costs that threaten to close tens of thousands of businesses.
Bloomberg reports that as many as 40,000 factories in Karachi, the country's commercial capital, are being slapped with high power costs that make operating near impossible.
Rising power costs are so severe that nine business groups in Karachi told the government that an immediate plan needs to be formulated to lower power costs or face economic disaster.
Any shuttering of factories and mass layoffs could trigger social unrest in the commercial capital, home to more than 16 million people.
Discontent among businesses and households is already soaring with an official inflation rate of over 13.37% (double the official CPI to get a more accurate picture of true price inflation), the 2nd fastest-rising rate in Asia.
On top of high power costs, Karachi's power utility -- K-Electric Ltd. -- warned customers of widespread power cuts for the first time in over a decade if power generation continues to struggle because of high fuel costs and supply shortages.
"These current conditions are severely hindering KE's ability to procure fuel, causing a permanent curtailment of power generation" that translates to as much as 10 hours of planned blackouts for some parts of the city, said Sadia Dada, a spokesperson for K-Electric.
Pakistan is also a nuclear power -- political elites may stoke a conflict with neighboring India to distract public anger from domestic financial pain.
Pakistan faces potential economic collapse as inflation jumps and widespread civil unrest could be nearing. The latest sign the South Asian country is spiraling into the abyss is rising electricity costs that threaten to close tens of thousands of businesses.
Bloomberg reports that as many as 40,000 factories in Karachi, the country's commercial capital, are being slapped with high power costs that make operating near impossible.
Rising power costs are so severe that nine business groups in Karachi told the government that an immediate plan needs to be formulated to lower power costs or face economic disaster.
Any shuttering of factories and mass layoffs could trigger social unrest in the commercial capital, home to more than 16 million people.
Discontent among businesses and households is already soaring with an official inflation rate of over 13.37% (double the official CPI to get a more accurate picture of true price inflation), the 2nd fastest-rising rate in Asia.
On top of high power costs, Karachi's power utility -- K-Electric Ltd. -- warned customers of widespread power cuts for the first time in over a decade if power generation continues to struggle because of high fuel costs and supply shortages.
"These current conditions are severely hindering KE's ability to procure fuel, causing a permanent curtailment of power generation" that translates to as much as 10 hours of planned blackouts for some parts of the city, said Sadia Dada, a spokesperson for K-Electric.
Pakistan is also a nuclear power -- political elites may stoke a conflict with neighboring India to distract public anger from domestic financial pain.
Ok now reply this with a straight face.
IK policies were bad that he artificially kept the prices low and now PDM has to face the consequences by raising the prices we get it, then why did couple of months back there was this whole drama of mehangai mukaoo march when PTI was using manufactured anti inflation measures
Can you really explain this because it is not making sense PDM attacks him for high prices and doing this stupid march and now they increase prices and attack him again saying he artificially kept the prices low and now have to increase the prices.
Bewal Express
Test Star
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- Nov 6, 2005
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- 36,218
Don't ask such logical questions, these badniyaat brains can't process such simple questions
Hextro
Local Club Star
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- Apr 13, 2022
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- 1,802
Exports are down to $2.6 Billion in May, 10% lower than they were in April. Imports on the other hand have grown to $6.6 Billion in May, that's a 25% increase compared to April.
I seriously don't know how these guys manage to screw things up so badly every time they're in power. I strongly believe that a teenager would run the economy better than the fools in PDM.
I seriously don't know how these guys manage to screw things up so badly every time they're in power. I strongly believe that a teenager would run the economy better than the fools in PDM.
Hextro
Local Club Star
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- Apr 13, 2022
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- 1,802
PDM's supporters seem shell-shocked at the moment. I don't know what they expected from people that managed to screw up the economy even at a time when there was no pandemic or a major war. How can anyone expect these incompetent fools to do well during two major crises?
Bewal Express
Test Star
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- Nov 6, 2005
- Runs
- 36,218
If remittances drop then the Rp is heading for 230 within 6 months
offstump
Local Club Captain
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- Feb 8, 2005
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- 2,464
Challo jee… we’re talking about the economy and this is the best you can come up with.
Syed1
ODI Captain
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- Jan 22, 2015
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Just a few months ago these startups were sky rocketing and raising foreign investment now on the brink of collapse
<blockquote class="twitter-tweet"><p lang="und" dir="ltr"><a href="https://twitter.com/hashtag/%D8%AD%D9%82%DB%8C%D9%82%DB%8C_%D8%A2%D8%B2%D8%A7%D8%AF%DB%8C_%D8%AE%D8%A7%D9%86_%DA%A9%DB%92_%D8%B3%D9%86%DA%AF?src=hash&ref_src=twsrc%5Etfw">#Ø*قیقی_آزادی_خان_Ú©Û’_سنگ</a> <a href="https://twitter.com/hashtag/%D8%A7%D9%85%D9%BE%D9%88%D8%B1%D9%B9%DA%88_%D8%AD%DA%A9%D9%88%D9%85%D8%AA_%D9%86%D8%A7%D9%85%D9%86%D8%B8%D9%88%D8%B1?src=hash&ref_src=twsrc%5Etfw">#امپورٹڈ_Ø*کومت_نامنظور</a> <a href="https://t.co/4QnwVQli7G">pic.twitter.com/4QnwVQli7G</a></p>— Azhar Mashwani (@MashwaniAzhar) <a href="https://twitter.com/MashwaniAzhar/status/1532661714319204353?ref_src=twsrc%5Etfw">June 3, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
I hope the PDM supporters suffer the brunt of the upcoming economic collapse inshallah
<blockquote class="twitter-tweet"><p lang="und" dir="ltr"><a href="https://twitter.com/hashtag/%D8%AD%D9%82%DB%8C%D9%82%DB%8C_%D8%A2%D8%B2%D8%A7%D8%AF%DB%8C_%D8%AE%D8%A7%D9%86_%DA%A9%DB%92_%D8%B3%D9%86%DA%AF?src=hash&ref_src=twsrc%5Etfw">#Ø*قیقی_آزادی_خان_Ú©Û’_سنگ</a> <a href="https://twitter.com/hashtag/%D8%A7%D9%85%D9%BE%D9%88%D8%B1%D9%B9%DA%88_%D8%AD%DA%A9%D9%88%D9%85%D8%AA_%D9%86%D8%A7%D9%85%D9%86%D8%B8%D9%88%D8%B1?src=hash&ref_src=twsrc%5Etfw">#امپورٹڈ_Ø*کومت_نامنظور</a> <a href="https://t.co/4QnwVQli7G">pic.twitter.com/4QnwVQli7G</a></p>— Azhar Mashwani (@MashwaniAzhar) <a href="https://twitter.com/MashwaniAzhar/status/1532661714319204353?ref_src=twsrc%5Etfw">June 3, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
I hope the PDM supporters suffer the brunt of the upcoming economic collapse inshallah
ARK Rafay
T20I Debutant
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- Jul 11, 2015
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- 6,685
Stop it now. PDM's main motive was 'Mehangai Mukao March'. What have they done so far? Open your eyes before it is too late
Kianig89
Senior Test Player
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- Oct 30, 2012
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- 26,974
PDM should be held accountable once this mess is over already road blocks and pump personnel being beaten at some areas in Rawalpindi
Cover Drive Six
First Class Star
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- Mar 29, 2021
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- 3,443
Moody's Investor Service on Thursday downgraded Pakistan's outlook from stable to negative, citing "heightened external vulnerability" and uncertainty around securing external financing to meet the country's needs.
"The decision to change the outlook to negative is driven by Pakistan's heightened external vulnerability risk and uncertainty around the sovereign's ability to secure additional external financing to meet its needs.
"The decision to change the outlook to negative is driven by Pakistan's heightened external vulnerability risk and uncertainty around the sovereign's ability to secure additional external financing to meet its needs.
Syed1
ODI Captain
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- Jan 22, 2015
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Not just PDM... but heads must roll within the establishment as well who enabled this regime change.
The country was on the path to progress, yes there were challenges but economy was growing at 6%, inflation was high (10-12%) but no where close to 30% it is going to be now. Moody downgraded economy's outlook as well. Since April the ruppee has lost close to Rs30/$ in value. Exports in May down by 10% M-o-M. On top of that major industrial areas are seeing multiple hour load shedding not seen since ~2015. The Chinese have packed up CPEC and left. Soon they will come knocking asking for their dollars. I hope PDM cultist are enjoying this "progress".
These political dynasties and GHQ generals will fly abroad. Only people living in Pakistan will be left to pick up the pieces and suffer the consequences.
Manunited18
First Class Star
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- Aug 7, 2019
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- 3,206
PDM have no where to hide! The Awaam of pakistan must punish these sell outs for their inexcusable actions.
Also the establishment cannot get away with their support for this pathetic mess.
Also the establishment cannot get away with their support for this pathetic mess.
Syed1
ODI Captain
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- Jan 22, 2015
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After petrol bomb here comes gas bomb
<blockquote class="twitter-tweet"><p lang="ur" dir="rtl">امپورٹڈ حلومت نے 45 فیصد اضافہ کا فیصلہ کر لیا ہے۔ عوام پہلے ہی مہنگائی سے تنگ آچُکے ہے لیکن یہ نااہل غلام حکومت عوام کی مشکلات میں اضافہ کرہی ہے!! <a href="https://twitter.com/hashtag/%D8%A7%D9%85%D9%BE%D9%88%D8%B1%D9%B9%DA%88_%D8%AD%DA%A9%D9%88%D9%85%D8%AA_%D9%86%D8%A7%D9%85%D9%86%D8%B8%D9%88%D8%B1?src=hash&ref_src=twsrc%5Etfw">#امپورٹڈ_حکومت_نامنظور</a> <a href="https://t.co/Fva6Jg8McT">pic.twitter.com/Fva6Jg8McT</a></p>— PTI (@PTIofficial) <a href="https://twitter.com/PTIofficial/status/1532822418233991168?ref_src=twsrc%5Etfw">June 3, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<blockquote class="twitter-tweet"><p lang="ur" dir="rtl">امپورٹڈ حلومت نے 45 فیصد اضافہ کا فیصلہ کر لیا ہے۔ عوام پہلے ہی مہنگائی سے تنگ آچُکے ہے لیکن یہ نااہل غلام حکومت عوام کی مشکلات میں اضافہ کرہی ہے!! <a href="https://twitter.com/hashtag/%D8%A7%D9%85%D9%BE%D9%88%D8%B1%D9%B9%DA%88_%D8%AD%DA%A9%D9%88%D9%85%D8%AA_%D9%86%D8%A7%D9%85%D9%86%D8%B8%D9%88%D8%B1?src=hash&ref_src=twsrc%5Etfw">#امپورٹڈ_حکومت_نامنظور</a> <a href="https://t.co/Fva6Jg8McT">pic.twitter.com/Fva6Jg8McT</a></p>— PTI (@PTIofficial) <a href="https://twitter.com/PTIofficial/status/1532822418233991168?ref_src=twsrc%5Etfw">June 3, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Vatta
Debutant
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- Apr 11, 2022
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- 125
The Pak Government is like England appointing Harold Shipman as the Health Secretary, Fred West as the Environmental Secretary, Robert Maxwell as the Chancellor of the Exchequer, the Krays as the Home Secretary and a tin of custard as the Foreign Secretary, on account that a previous FS liked that brand.
Vatta
Debutant
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- Apr 11, 2022
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- 125
Where's the fella - when these chumps were imposed - who was going on about the stockmarket going up, the rupee stabilising and the yellow brick road being discovered?
wasim-fan
Local Club Captain
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- Feb 1, 2010
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- 2,468
Well all the decisions have been in right direction so far. Even if it's driven by IMF pressure. Short term pain for long term survival.
Ok that what mehangayi mukaw march was for. MashaAllah..
Vatta
Debutant
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Kriketer
First Class Captain
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- Jan 14, 2007
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- 4,895
Look at the change of tone. So why was there so much noice from PDM fans during Imran when inflation was driving prices up? PDM and its fans said they ll control it but its been absolute worse since PDM took over, that's because they are absolutely clueless about running a country. Choors and criminals don't make good leaders, hence the struggle is obvious.
wasim-fan
Local Club Captain
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- Feb 1, 2010
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- 2,468
That's just politics. Not economics. Similar to IK talking about crashing Rupee. Truth is rupee depreciation is inevitable and perhaps even necessary.
We all know but this regime change has made things worst.
They don't care about economy. We do not see them on one page. chaos , absolute chaos.
Bewal Express
Test Star
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- Nov 6, 2005
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- 36,218
Don't you know that prices are high all over the world?
Maryam told us that they would cut to 70rps. That was their only argument to get rid of IK. So we will hold them to that promise
transparent opacity
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- Oct 5, 2019
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- 940
Defence budget hiked by 6% to ‘offset inflation impact’
ISLAMABAD:
The government on Friday increased the defence budget for the outgoing fiscal year by nearly 6% to over Rs1.45 trillion in a bid to meet the needs of the armed forces, including their enhanced salary requirements.
The decision to increase the defence budget by another Rs80 billion was taken by the Economic Coordination Committee (ECC) of the Cabinet that in total approved Rs182 billion in supplementary grants.
The ECC also approved slapping a 10% regulatory duty on the import of petrol from China to curb the misuse of bilateral free trade agreement. Some oil marketing firms rerouted their imports through China to evade 10% customs duties.
The Ministry of Defence had demanded an additional Rs80 billion defence budget for “critical shortfalls” in addition to making adjustments in the budget for spending on the Jinnah Naval base, the Naval Base Turbat and multi-functional office building in the headquarters.
Federal Minister for Finance Miftah Ismail presided over the ECC meeting that approved Rs80 billion supplementary budget for the armed forces or to the extent of the actual additional expenditures being incurred. The finance ministry was of the view that the additional spending in fiscal year 2021-22 ending on June 30 will be less than Rs80 billion.
For the outgoing fiscal year, the National Assembly had last year approved a Rs1.373 trillion defence budget. With the raise in the spending ceiling, the next fiscal year’s defence budget may also now be higher than the earlier estimated figure of over Rs1.55 trillion.
In total, the Ministry of Defence got Rs153 billion or 11.8% additional money in this fiscal year over the revised budget of the previous year, which is equal to the average inflation rate in Pakistan. The defence spending will be equal to 2.2% of the Gross Domestic Product, excluding expenditures on the armed forces development programme.
In July last year, the previous government had given 15% special allowance of the running basic pay to all the ranks of the armed forces, which jacked up the army budget requirements by another Rs38 billion per annum.
However, defence sources categorically denied that there was an increase in the defence budget. "There is no increase in defence budget at all. The net effect is the same as the previous year.
"Inflation rate for this fiscal year is 11.3%. To cater for the inflationary impact, the Ministry of Defence received Rs153 billion as a supplementary grant. The rupee devaluation has also been absorbed and no additional grant has been requested. The total defence budget of the Army, Navy and Air Force is likely to be Rs1,453 Billion, which is 2.2% of the GDP," they added.
The ECC also approved Rs621 million for gas supply to the Pakistan Steel Mills (PSM). It was submitted that due to closure of the production activity in Pakistan Steel Mills (PSM), low flame gas of two MMCFD was being supplied to PSM primarily to preserve the Coke Oven Batteries and refractories kilns with an average monthly bill of Rs80 million.
The ECC revised the cess rates on all types and varieties of tobacco notified by the federal government on July 14.
The Ministry of Communication submitted a summary on funds required for clearing liabilities of the utility companies and agency partners of the Pakistan Post Office Department (PPOD). The collection of utility bills is one of the agency’s functions performed by the PPOD and the amount thus collected was deposited in SBP’s Central Account-1. Liabilities to the tune of Rs62.3 billion have been accumulated till March 31, 2022. The Rs25 billion had already been approved in April for payment to utility companies.
The ECC after detailed discussion granted permission to release funds amounting to Rs37.33 billion for clearing the remaining outstanding liabilities of the utility companies and agency partners by the PPOD after verification of claimed amount by the SBP.
The Ministry of Commerce submitted a summary on levy of regulatory duty on import of Motor Spirit (MS). It was informed that the import of MS was subject to 10% customs duty under the 5th Schedule of the Customs Act, 1969, but it was subject to 0% under China-Pakistan Free Trade Agreement (CPFTA). Those availing the FTA exemption paid zero customs duty while others paid 10% customs duty. The ECC after discussion, in order to address this anomaly, allowed levy of 10% regulatory duty on import of MS. However, where 10% customs duty was paid on import of MS, it would be exempted from levy of regulatory duty.
The ECC also deliberated and approved a summary submitted by the Finance Division on policy for grant of honorarium with direction that the proposal may be redefined as the ECC chairman in his discretion could award additional honorarium to the employees of the federal government.
The ECC approved Rs40.5 billion for the Ministry of Commerce for payment claims cleared by the SBP, under previous government’s duty drawbacks schemes (DLTL/LTLD) of textiles and non-textiles sectors. It allowed Rs2.2 billion payment to the Federal Directorate of Education. About Rs4 billion was given to the Higher Education Commission under the World Bank project – Higher Education Development in Pakistan.
The ECC also approved Rs15 billion to meet the requirements of the Ministry of Interior.
https://tribune.com.pk/story/2359984/defence-budget-hiked-by-6-to-offset-inflation-impact
ISLAMABAD:
The government on Friday increased the defence budget for the outgoing fiscal year by nearly 6% to over Rs1.45 trillion in a bid to meet the needs of the armed forces, including their enhanced salary requirements.
The decision to increase the defence budget by another Rs80 billion was taken by the Economic Coordination Committee (ECC) of the Cabinet that in total approved Rs182 billion in supplementary grants.
The ECC also approved slapping a 10% regulatory duty on the import of petrol from China to curb the misuse of bilateral free trade agreement. Some oil marketing firms rerouted their imports through China to evade 10% customs duties.
The Ministry of Defence had demanded an additional Rs80 billion defence budget for “critical shortfalls” in addition to making adjustments in the budget for spending on the Jinnah Naval base, the Naval Base Turbat and multi-functional office building in the headquarters.
Federal Minister for Finance Miftah Ismail presided over the ECC meeting that approved Rs80 billion supplementary budget for the armed forces or to the extent of the actual additional expenditures being incurred. The finance ministry was of the view that the additional spending in fiscal year 2021-22 ending on June 30 will be less than Rs80 billion.
For the outgoing fiscal year, the National Assembly had last year approved a Rs1.373 trillion defence budget. With the raise in the spending ceiling, the next fiscal year’s defence budget may also now be higher than the earlier estimated figure of over Rs1.55 trillion.
In total, the Ministry of Defence got Rs153 billion or 11.8% additional money in this fiscal year over the revised budget of the previous year, which is equal to the average inflation rate in Pakistan. The defence spending will be equal to 2.2% of the Gross Domestic Product, excluding expenditures on the armed forces development programme.
In July last year, the previous government had given 15% special allowance of the running basic pay to all the ranks of the armed forces, which jacked up the army budget requirements by another Rs38 billion per annum.
However, defence sources categorically denied that there was an increase in the defence budget. "There is no increase in defence budget at all. The net effect is the same as the previous year.
"Inflation rate for this fiscal year is 11.3%. To cater for the inflationary impact, the Ministry of Defence received Rs153 billion as a supplementary grant. The rupee devaluation has also been absorbed and no additional grant has been requested. The total defence budget of the Army, Navy and Air Force is likely to be Rs1,453 Billion, which is 2.2% of the GDP," they added.
The ECC also approved Rs621 million for gas supply to the Pakistan Steel Mills (PSM). It was submitted that due to closure of the production activity in Pakistan Steel Mills (PSM), low flame gas of two MMCFD was being supplied to PSM primarily to preserve the Coke Oven Batteries and refractories kilns with an average monthly bill of Rs80 million.
The ECC revised the cess rates on all types and varieties of tobacco notified by the federal government on July 14.
The Ministry of Communication submitted a summary on funds required for clearing liabilities of the utility companies and agency partners of the Pakistan Post Office Department (PPOD). The collection of utility bills is one of the agency’s functions performed by the PPOD and the amount thus collected was deposited in SBP’s Central Account-1. Liabilities to the tune of Rs62.3 billion have been accumulated till March 31, 2022. The Rs25 billion had already been approved in April for payment to utility companies.
The ECC after detailed discussion granted permission to release funds amounting to Rs37.33 billion for clearing the remaining outstanding liabilities of the utility companies and agency partners by the PPOD after verification of claimed amount by the SBP.
The Ministry of Commerce submitted a summary on levy of regulatory duty on import of Motor Spirit (MS). It was informed that the import of MS was subject to 10% customs duty under the 5th Schedule of the Customs Act, 1969, but it was subject to 0% under China-Pakistan Free Trade Agreement (CPFTA). Those availing the FTA exemption paid zero customs duty while others paid 10% customs duty. The ECC after discussion, in order to address this anomaly, allowed levy of 10% regulatory duty on import of MS. However, where 10% customs duty was paid on import of MS, it would be exempted from levy of regulatory duty.
The ECC also deliberated and approved a summary submitted by the Finance Division on policy for grant of honorarium with direction that the proposal may be redefined as the ECC chairman in his discretion could award additional honorarium to the employees of the federal government.
The ECC approved Rs40.5 billion for the Ministry of Commerce for payment claims cleared by the SBP, under previous government’s duty drawbacks schemes (DLTL/LTLD) of textiles and non-textiles sectors. It allowed Rs2.2 billion payment to the Federal Directorate of Education. About Rs4 billion was given to the Higher Education Commission under the World Bank project – Higher Education Development in Pakistan.
The ECC also approved Rs15 billion to meet the requirements of the Ministry of Interior.
https://tribune.com.pk/story/2359984/defence-budget-hiked-by-6-to-offset-inflation-impact
Major
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Don't you know that prices are high all over the world?
all of a sudden they forgot.
Manunited18
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- Aug 7, 2019
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- 3,206
But but PTI had to deal with the same issue, or are your excuses only reserved for the "money laundering PM" LOL.
wasim-fan
Local Club Captain
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- Feb 1, 2010
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- 2,468
There was one regime for 3.5 years and rupee crashed from 115 to 187. So I think it's a bit rich coming from PTI. And tbh it was right policy by PTI.
Bewal Express
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You came in power on a promise and all we have is laws changed to suit criminals( i am not sure if you have seen the remarks by the SC, a body itself that is corrupt but is desperate to regain some credibility) but Electricity up by 47% and you know why? Petrol up by 60rps when they promised to to cut it by 70rps. So the question is when is Billo, Nani and Diesel starting the Mehngai Mukao March?
Major
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Mhengai ends in 2 months? Never knew this
Bewal Express
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Yes it does, if your promise is to cut prices and thats your only narrative. Btw you still havent explained why IK is traitor for keeping prices petrol low, but your guys promised even lower and said Prices were too high are your heroes
OneManShow
Debutant
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- 122
PDM : We march to eradicate mehngahi - we will govern to do so
Also PDM: we can't eradicate mehngahi as IK had dropped prices to trap us
Also PDM: we can't eradicate mehngahi as IK had dropped prices to trap us
Bewal Express
Test Star
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- Nov 6, 2005
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- 36,218
I am still trying to understand, its as if we are living in the World of idiocracy. https://en.wikipedia.org/wiki/Idiocracy
115 to 187. sorry you are telling wrong figures which shows your are biased .
wasim-fan
Local Club Captain
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- Feb 1, 2010
- Runs
- 2,468
True. To quantify it is exactly 11 rupees of bias. It was 126. What a game changer this was.
Bewal Express
Test Star
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- Nov 6, 2005
- Runs
- 36,218
And it wasn't 188, when the VONC was announced it was around 177 and the average was around 173-175. And btw do you know the difference between free floating and managed?
No. add 10 more.
Bewal Express
Test Star
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- Nov 6, 2005
- Runs
- 36,218
Why make up things? Dar tried to do the same and destroyed our exports with the massive subsidy to imports and a tax on exports.
Kianig89
Senior Test Player
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- Oct 30, 2012
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- 26,974
These PDM loyalists are dheet of highest order like that tail which will not straighten no matter how long it is stretched, inflation sky rocketing Rice of lowest quality increased from 145 to 200, lentils Mash 240 to 275, Masoor 220 to 255, so and so on
Hextro
Local Club Star
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- 1,802
News outlets are reporting that textile mills all over the country are closing down because the government has halted all gas supply.
PDM(PMLN, PPP etc) is repeating what it did in 2013-18. Reduce exports and increase imports.
PDM(PMLN, PPP etc) is repeating what it did in 2013-18. Reduce exports and increase imports.
Hextro
Local Club Star
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- Apr 13, 2022
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- 1,802
This is just the start. Prices are gonna shoot up the roof in the next few weeks.
Vatta
Debutant
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- 125
There's always a quote from Plastic Surgery. Penguin has forgotten about menghai now, oddly enough.
Your Penguin's getting in on the act, as well.
https://www.youtube.com/watch?v=BQdhmio-VF4
Oh, the irony.
Last edited:
offstump
Local Club Captain
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All the hard work over the last few years to reinvigorate the textile industry has gone down the drain.
- Joined
- Oct 2, 2004
- Runs
- 217,479
The federal government on Saturday approved 5% economic growth and 11.5% inflation targets for the next fiscal year as it faces the challenge of striking balance between growth and economic viability.
Headed by Planning Minister Ahsan Iqbal, the Annual Plan Coordination Committee (APCC) set the current account deficit target for fiscal year 2022-23 at 2.2% of gross domestic product (GDP), or over $10 billion.
The coalition government wants to achieve the deficit target by drastically suppressing imports.
In the outgoing fiscal year, the current account deficit is estimated at $16 billion, or 4.1% of GDP. The APCC had approved the current account deficit target at 0.7% of GDP, or $2.3 billion, for the outgoing fiscal year.
Economists believe that the country could afford to have current account deficit of up to 2% of GDP.
Keeping in view the external and uncertain domestic economic environment, the GDP growth will slightly taper off and is envisaged at 5% for 2022-23 on the back of growth in agriculture sector (3.9%), manufacturing (7.1%) and services (5.1%), according to the APCC.
Investment will also be moderated because of fiscal and current account compression.
The 5% growth target is less than that achieved in the outgoing fiscal year, which according to the Planning Commission was “primarily fuelled by the excessive demand-driven consumption”.
The APCC noted that the economy was expected to consolidate the growth momentum generated two years ago. But it observed that there was a question mark over the quality of 6% economic growth in the outgoing fiscal year, which was driven by consumption.
Fiscal year 2021-22 started with positive prospects as growth-supportive policies induced aggregate demand pressures, hence, the tenuous spillover between growth acceleration and external sector vulnerabilities resurfaced, the Planning Commission told the APCC.
The APCC approved the average inflation target at 11.5% for the next fiscal year, indicating that the annual inflation rate would remain far higher than the benchmark, as the government had started increasing prices of fuel, electricity and gas for the sake of International Monetary Fund (IMF) loan deal.
A central bank representative warned in the meeting that there were significant risks to the 11.5% inflation target, suggesting that the average inflation rate may again remain higher than the target in the next fiscal year.
For the outgoing fiscal year, the previous government had approved the inflation target at 8%, but it would stay higher at 13.3%, showing failure of the State Bank of Pakistan (SBP) that is now responsible for containing inflation to the government-guided targeted level.
The Annual Economic Plan will now be tabled before the National Economic Council (NEC) next week for its formal endorsement. NEC meeting will be headed by Prime Minister Shehbaz Sharif.
The NEC is a constitutional body responsible for macroeconomic planning while the Planning Commission deputy chairman heads the APCC.
“With the likely resumption of IMF programme, the economic outlook for the next fiscal year 2022-23 is expected to result in orderly rebalancing between imperatives of economic growth and addressing external sector vulnerabilities,” said the APCC.
It added that fiscal adjustment efforts, addressing worsening trade balance, mitigating political and economic uncertainty would result in slowdown in economic growth in the next fiscal year.
The projected agriculture sector growth at 3.9% is mainly contingent upon the increase in cotton and wheat production, consistent availability of water, certified seeds, fertilisers, pesticides and agricultural credit facilities.
The industrial growth momentum will also be moderated owing to fiscal consolidation but large-scale manufacturing (LSM) is projected to sustain growth at 7.4% during 2022-23.
There are downside risks to the LSM growth from high costs and low supplies of energy inputs, exchange rate-related uncertainties and Russia-Ukraine war-related supply shocks, which have the potential to impact the manufacturing sector.
The overall manufacturing sector is projected to post growth of 7.1% in the next fiscal year.
The services sector will also slow down to 5.1%, which is lower than its five-year pre-Covid annual average growth of 5.3%.
Investment level for 2022-23 is expected to decrease to 14.7% of GDP due to stabilisation and the uncertain economic environment while the national savings rate is targeted at 12.6% of GDP.
The APCC underlined that fiscal consolidation would be pursued and efforts would be made to bring down the fiscal deficit through a combination of revenue enhancement and expenditure management policies.
Monetary policy stance would remain vigilant and supportive of demand management policies, it added.
Published in The Express Tribune, June 5th, 2022.
Headed by Planning Minister Ahsan Iqbal, the Annual Plan Coordination Committee (APCC) set the current account deficit target for fiscal year 2022-23 at 2.2% of gross domestic product (GDP), or over $10 billion.
The coalition government wants to achieve the deficit target by drastically suppressing imports.
In the outgoing fiscal year, the current account deficit is estimated at $16 billion, or 4.1% of GDP. The APCC had approved the current account deficit target at 0.7% of GDP, or $2.3 billion, for the outgoing fiscal year.
Economists believe that the country could afford to have current account deficit of up to 2% of GDP.
Keeping in view the external and uncertain domestic economic environment, the GDP growth will slightly taper off and is envisaged at 5% for 2022-23 on the back of growth in agriculture sector (3.9%), manufacturing (7.1%) and services (5.1%), according to the APCC.
Investment will also be moderated because of fiscal and current account compression.
The 5% growth target is less than that achieved in the outgoing fiscal year, which according to the Planning Commission was “primarily fuelled by the excessive demand-driven consumption”.
The APCC noted that the economy was expected to consolidate the growth momentum generated two years ago. But it observed that there was a question mark over the quality of 6% economic growth in the outgoing fiscal year, which was driven by consumption.
Fiscal year 2021-22 started with positive prospects as growth-supportive policies induced aggregate demand pressures, hence, the tenuous spillover between growth acceleration and external sector vulnerabilities resurfaced, the Planning Commission told the APCC.
The APCC approved the average inflation target at 11.5% for the next fiscal year, indicating that the annual inflation rate would remain far higher than the benchmark, as the government had started increasing prices of fuel, electricity and gas for the sake of International Monetary Fund (IMF) loan deal.
A central bank representative warned in the meeting that there were significant risks to the 11.5% inflation target, suggesting that the average inflation rate may again remain higher than the target in the next fiscal year.
For the outgoing fiscal year, the previous government had approved the inflation target at 8%, but it would stay higher at 13.3%, showing failure of the State Bank of Pakistan (SBP) that is now responsible for containing inflation to the government-guided targeted level.
The Annual Economic Plan will now be tabled before the National Economic Council (NEC) next week for its formal endorsement. NEC meeting will be headed by Prime Minister Shehbaz Sharif.
The NEC is a constitutional body responsible for macroeconomic planning while the Planning Commission deputy chairman heads the APCC.
“With the likely resumption of IMF programme, the economic outlook for the next fiscal year 2022-23 is expected to result in orderly rebalancing between imperatives of economic growth and addressing external sector vulnerabilities,” said the APCC.
It added that fiscal adjustment efforts, addressing worsening trade balance, mitigating political and economic uncertainty would result in slowdown in economic growth in the next fiscal year.
The projected agriculture sector growth at 3.9% is mainly contingent upon the increase in cotton and wheat production, consistent availability of water, certified seeds, fertilisers, pesticides and agricultural credit facilities.
The industrial growth momentum will also be moderated owing to fiscal consolidation but large-scale manufacturing (LSM) is projected to sustain growth at 7.4% during 2022-23.
There are downside risks to the LSM growth from high costs and low supplies of energy inputs, exchange rate-related uncertainties and Russia-Ukraine war-related supply shocks, which have the potential to impact the manufacturing sector.
The overall manufacturing sector is projected to post growth of 7.1% in the next fiscal year.
The services sector will also slow down to 5.1%, which is lower than its five-year pre-Covid annual average growth of 5.3%.
Investment level for 2022-23 is expected to decrease to 14.7% of GDP due to stabilisation and the uncertain economic environment while the national savings rate is targeted at 12.6% of GDP.
The APCC underlined that fiscal consolidation would be pursued and efforts would be made to bring down the fiscal deficit through a combination of revenue enhancement and expenditure management policies.
Monetary policy stance would remain vigilant and supportive of demand management policies, it added.
Published in The Express Tribune, June 5th, 2022.
Bewal Express
Test Star
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- Nov 6, 2005
- Runs
- 36,218
Kaptaans hard work undone in 8 weeks by these losers.
Colorblind Genius
First Class Captain
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- Dec 24, 2019
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- 4,208
- Post of the Week
- 3
The gullible elements in the public who voted for these thieves for a plate of biryani, and participated in mehangai mukao march, must be enjoying this hyper inflation.
And the corrupt, and dishonest chunks in the public who’s philosophy is, “meri pasand ka chore should rule the country so that I can easily continue with corruption and dishonesty at my own level” will soon see that haram khori fires back, and it never pays off!
And the corrupt, and dishonest chunks in the public who’s philosophy is, “meri pasand ka chore should rule the country so that I can easily continue with corruption and dishonesty at my own level” will soon see that haram khori fires back, and it never pays off!
Vatta
Debutant
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- Apr 11, 2022
- Runs
- 125
Well said
A family friend is the Navy and are PPPers. Their reasoning, at least with Zardari stealing, they were getting crumbs back. They always said you don't know how expensive it is with IK in charge.
Oddly enough they are rather silent at the moment.
Abstraction1
Debutant
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- Mar 29, 2022
- Runs
- 236
Exactly. Ironically, the deluded PDM supporters have the audacity to called anyone that backs Khan a "Cultist".
Unbelievable
Bewal Express
Test Star
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- Nov 6, 2005
- Runs
- 36,218
One of the greatest analogies ever used on here.
Kianig89
Senior Test Player
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- Oct 30, 2012
- Runs
- 26,974
Horse carts being allowed in Lahore for public transportation back to square 1 we are thank you PDM
transparent opacity
Tape Ball Star
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- Oct 5, 2019
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- 940
Ogra seeks uniform gas rates for all users
ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has asked the government to apply equal gas rates to all consumers irrespective of categories and sectors to ensure recovery of true cost of gas without any discrimination and end gas sector circular debt.
The rates for consumers in lower usage categories of domestic and special commercial sectors, like tandoor, would, according to Ogra’s two separate determinations, increase by over 600 per cent in July if the federal government accepts the regulator’s advice to meet the revenue requirements of gas companies.
“All the categories of consumers must at least pay the average cost of service keeping in view the existing cost of alternative or substitute sources of energy. Resultantly, there shall be no situation of unmet revenue requirement. This shall provide a level playing field for all concerned and avoid the situation of revenue shortfall,” Ogra wrote in its determinations on revenue requirements of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) last week.
In its determination, Ogra has also forwarded category-wise prescribed prices for the fiscal year 2022-23. Under this determination, the regulator has also recommended charging an equal rate of Rs854.52 per unit to all consumers irrespective of their sectors and existing slabs.
As such, domestic consumers in the lowest slab (lifeline consumers) would face about 606pc increase in gas rates against the existing monthly rate of Rs121 per unit for up to 0.5 cubic metre consumption.
Second domestic slab (up to one cubic metre per month), currently paying Rs300 per unit, would face a 185pc increase, while third slab (up to two cubic metres) would witness a 55pc increase in the existing rate of Rs553. The next slab (up to three cubic metres) would see a 16pc increase in the existing rate of Rs738 per unit.
The next two slabs of up to four cubic metres and above would, on the other hand, get a relief as their existing rates stand at Rs1,107 and Rs1,460 per unit, showing a reduction of 23pc and 41pc, respectively.
Likewise, if Ogra’s advice is accepted, the special commercial consumers and roti-tandoor would face 288-610pc increase in their existing rates of Rs220 and Rs110 per unit, respectively.
However, this advice is non-binding to the extent that the federal government could still ask the regulator to notify different gas rates to different consumer categories based on socio-political considerations but would have to ensure that the overall average price determined by Ogra remains unchanged. In that case, the government would have to pass on the price differential to other consumer categories like power sector, cement and commercial sectors.
The federal government has the powers to advise Ogra to notify a different set of gas tariff for various consumers, but without changing the overall increase in average price determined by the regulator. It is, however, binding under the amended Ogra law that the regulator’s determined tariff would stand automatically notified in the absence of any government decision within 40 days of the determination.
The regulator recalled that despite its determinations in the past, the federal government had allowed insufficient revisions in gas sale rates, resulting in accumulation of previous year’s revenue shortfall in the total revenue requirements of the gas companies. The previous year’s shortfall in case of SNGPL alone stands at about Rs265 billion.
Ogra, in its fresh determination, as well as previous decision, has already referred the matter to the government for an appropriate policy decision through which the Ministry of Energy should devise a mechanism for direct disbursement to the Sui companies without affecting the revenue requirement exercise and process for future determination under the amendments to the Ogra law.
Ogra warned the government of serious consequences if it tried to pass on previous year’s revenue shortfall duly determined by the regulator. Any inclusion of previous year’s shortfall by the government, after latest amendments, would not only jack up the price significantly for all categories of consumers but also attract litigation in various courts, it added. Ogra advised the government that “it is appropriate that the said legislation should only account for the future price adjustments on a prospective basis”.
https://www.dawn.com/news/1693381/ogra-seeks-uniform-gas-rates-for-all-users
ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has asked the government to apply equal gas rates to all consumers irrespective of categories and sectors to ensure recovery of true cost of gas without any discrimination and end gas sector circular debt.
The rates for consumers in lower usage categories of domestic and special commercial sectors, like tandoor, would, according to Ogra’s two separate determinations, increase by over 600 per cent in July if the federal government accepts the regulator’s advice to meet the revenue requirements of gas companies.
“All the categories of consumers must at least pay the average cost of service keeping in view the existing cost of alternative or substitute sources of energy. Resultantly, there shall be no situation of unmet revenue requirement. This shall provide a level playing field for all concerned and avoid the situation of revenue shortfall,” Ogra wrote in its determinations on revenue requirements of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) last week.
In its determination, Ogra has also forwarded category-wise prescribed prices for the fiscal year 2022-23. Under this determination, the regulator has also recommended charging an equal rate of Rs854.52 per unit to all consumers irrespective of their sectors and existing slabs.
As such, domestic consumers in the lowest slab (lifeline consumers) would face about 606pc increase in gas rates against the existing monthly rate of Rs121 per unit for up to 0.5 cubic metre consumption.
Second domestic slab (up to one cubic metre per month), currently paying Rs300 per unit, would face a 185pc increase, while third slab (up to two cubic metres) would witness a 55pc increase in the existing rate of Rs553. The next slab (up to three cubic metres) would see a 16pc increase in the existing rate of Rs738 per unit.
The next two slabs of up to four cubic metres and above would, on the other hand, get a relief as their existing rates stand at Rs1,107 and Rs1,460 per unit, showing a reduction of 23pc and 41pc, respectively.
Likewise, if Ogra’s advice is accepted, the special commercial consumers and roti-tandoor would face 288-610pc increase in their existing rates of Rs220 and Rs110 per unit, respectively.
However, this advice is non-binding to the extent that the federal government could still ask the regulator to notify different gas rates to different consumer categories based on socio-political considerations but would have to ensure that the overall average price determined by Ogra remains unchanged. In that case, the government would have to pass on the price differential to other consumer categories like power sector, cement and commercial sectors.
The federal government has the powers to advise Ogra to notify a different set of gas tariff for various consumers, but without changing the overall increase in average price determined by the regulator. It is, however, binding under the amended Ogra law that the regulator’s determined tariff would stand automatically notified in the absence of any government decision within 40 days of the determination.
The regulator recalled that despite its determinations in the past, the federal government had allowed insufficient revisions in gas sale rates, resulting in accumulation of previous year’s revenue shortfall in the total revenue requirements of the gas companies. The previous year’s shortfall in case of SNGPL alone stands at about Rs265 billion.
Ogra, in its fresh determination, as well as previous decision, has already referred the matter to the government for an appropriate policy decision through which the Ministry of Energy should devise a mechanism for direct disbursement to the Sui companies without affecting the revenue requirement exercise and process for future determination under the amendments to the Ogra law.
Ogra warned the government of serious consequences if it tried to pass on previous year’s revenue shortfall duly determined by the regulator. Any inclusion of previous year’s shortfall by the government, after latest amendments, would not only jack up the price significantly for all categories of consumers but also attract litigation in various courts, it added. Ogra advised the government that “it is appropriate that the said legislation should only account for the future price adjustments on a prospective basis”.
https://www.dawn.com/news/1693381/ogra-seeks-uniform-gas-rates-for-all-users
Cover Drive Six
First Class Star
- Joined
- Mar 29, 2021
- Runs
- 3,443
Good olden days are back.
Syed1
ODI Captain
- Joined
- Jan 22, 2015
- Runs
- 46,039
- Post of the Week
- 3
It was mocking PTI when petrol price was 108 now it's 210 under imported government. I hope PDM supporters are enjoying
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Just take a look at the Tweet from this FAKE Foreign Minister. Saray CHOR aur Dacoit kathay huway waih hein. Ab pasand aaye Imported Hakoomat. Petrol
Rs 205+ <a href="https://t.co/rigLqJKtIl">pic.twitter.com/rigLqJKtIl</a></p>— Murad Raas (@DrMuradPTI) <a href="https://twitter.com/DrMuradPTI/status/1533721729541058560?ref_src=twsrc%5Etfw">June 6, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Just take a look at the Tweet from this FAKE Foreign Minister. Saray CHOR aur Dacoit kathay huway waih hein. Ab pasand aaye Imported Hakoomat. Petrol
Rs 205+ <a href="https://t.co/rigLqJKtIl">pic.twitter.com/rigLqJKtIl</a></p>— Murad Raas (@DrMuradPTI) <a href="https://twitter.com/DrMuradPTI/status/1533721729541058560?ref_src=twsrc%5Etfw">June 6, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>Similar threads
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