Govt increases petrol price by Re1, keeps diesel rate unchanged
However, the price of high-speed diesel (HSD) remained unchanged at Rs254.64 per litre, according to a notification from the Finance Division.
The new prices come into effect from June 1, 2025.
In the previous review, the government kept the petrol price unchanged while reduced the High Speed Diesel (HSD) rate by Rs2.
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Express Tribune
4 hours ago
- Express Tribune
Sugar import plan raises many eyebrows
Listen to article Last year, sugar mills had submitted sugar stock figures to the federal government and Prime Minister Shehbaz Sharif had been very happy with these stock figures. Based on the stock figures, the government had allowed the export of sugar which was linked with Rs2 per kg increase in retail price. It was agreed that sugar export would be halted if the retail prices went up from the benchmark price. But that price increased from the ex-mill price of Rs141 per kg to Rs200 per kg. Now, a game of imports has started with the Ministry of National Food Security and Research announcing on Saturday that the government is going to import 0.2 million tons of sugar to intervene to overcome sugar prices hike. The traders and sugar mill owners are both beneficiaries in the dirty game of price hike. First, the government allowed the sugar mills to pocket millions of dollars by exporting sugar and even raised prices in the domestic market. Now, the government is betting on the sugar import rather than taking strict action against the mills which had given an understanding that they would not increase the prices of the sweetener. The Ministry of National Food Security and Research in a statement announced the government's decision to import 200,000 tons of sugar. A spokesperson said the final order for sugar import has been placed and the import of sugar has entered the final stage after the opening of the tender. He said sugar is being imported from China. "The first shipment of imported sugar will reach Pakistan in early September 2025," the spokesperson said, adding that the aim of the import is to ensure the availability of sugar in the market and maintain price balance. He added that the relevant committee formed by the government also successfully obtained a discount at the time of purchase in the international market. The arrival of imported sugar, he said, will maintain price balance in the local market and directly benefit consumers. Federal Minister for Food Security Rana Tanveer Hussain recently claimed during a press conference that sugar is available in abundant quantities and its price is within the reach of the common man. He ruled out the claims that sugar was first exported and is now being imported to allow a mafia to mint money. "Except for one or two years, sugar has historically been exported in large quantities and then imported to meet demands. The sugar issue emerges seasonally like monsoon frogs," he remarked. He said the Sugar Advisory Board includes federal ministers, representatives from all four provinces, and relevant stakeholders. The government allowed sugar export in a phased manner. At the time when the export request was made, the global market price of sugar was $750 per ton. Hussain also claimed that there is a difference of Rs8 to Rs10 per kg between ex-mill and retail prices. After the export, he said, the local price of sugar dropped to Rs119 per kg. He said the government has maintained a buffer stock of 500,000 tons. Despite an increase in the cultivated area, sugar production fell. "As soon as we learned about the shortfall, the prime minister halted the remaining sugar export and 40,000 tons of sugar was not exported," he added.
Business Recorder
6 hours ago
- Business Recorder
Re-appropriation, funds allocation strategy notified: No supplementary grant for unbudgeted spending: FD
ISLAMABAD: No supplementary grant for any additional unbudgeted spending over the parliamentary approved level shall be considered by Finance Division, except in cases of severe natural disasters. The Finance Division notified the strategy for re-appropriation and additional allocation of funds during financial year, which noted that no supplementary grant for any additional unbudgeted spending over the parliamentary approved level shall be considered by Finance Division, except in cases of severe natural disasters. However, where no funds can be made available through re-appropriation and technical supplementary grant (TSG), the following shall be required: Principal Accounting Officers (PAOs) certifies that all avenues have been exhausted, which is to be verified by the relevant Accounting Organization/Office; PAO provides valid justification and cogent reasons for demanding SG; Recommendation of Expenditure Wing or concerned Wing of the Finance Division; Govt to present Rs203.34bn supplementary, excess grants in NA today The procedure reflected in para 3 relating to Technical Supplementary Grant at sub-paras (i)-(vi) shall also be followed for supplementary grant. The notification further stated that any request for provision of funds through TSG shall only be submitted by PAOs, with identification of resources under other demand(s) and certificate that equivalent funds will be provided by ministry/division from their allocation. Expenditure Wing shall examine the TSG cases in detail and submit recommendation for consideration of Budget Wing, Finance Division. TSG cases relating to Public Sector Development Programm (PSDP), after meeting the requirements mentioned above, shall be processed through the Planning, Development and Special Initiatives Division. Budget Wing, Finance Division shall examine the cases in the light of Budget Execution Report of SAP system, recommendation of Expenditure Wing and available fiscal space before submission to Finance Secretary for consideration and approval. Approved TSG by the Federal Cabinet, the PAO shall submit the schedule of TSG, duly endorsed by the Expenditure Wing, Finance Division, along with copies of the Summary for ECC and decision of the Economic Coordination Committee (ECC) of the Cabinet, ratification of the Cabinet and surrender order to Director (Budget Computerization), Budget Wing, Finance Division for entry in SAP system. Funds approved through TSG shall be released by the Finance Division keeping in view the availability of funds and in line with Release Strategy. The notification stated that in pursuance of the Article 84 of the Constitution of Islamic Republic of Pakistan and Section 10 of PFM Act 2019, if the amount authorized to be expended for a particular service for a financial year is found insufficient, or that a need has arisen for expenditure upon some new service not included in Annual Budget Statement (ABS) and Schedule of Authorized Expenditure the following steps shall be taken by the PA0s or Heads of the Departments/Organizations/Sub-ordinate Offices. Authorized Officer may re-appropriate funds in line with delegated financial powers for re-appropriation of funds under Sr#5 of Schedule of Financial Management and Powers of PAOs Regulations, 2021, as amended by Finance Division from time to time. However, no re-appropriation shall be made from unreleased budget. PAOs have been provided additional funds to meet funding requirements of adhoc Relief Allowance announced in the budget for current fiscal year under a separate cost centre in each Demand for Grants and Appropriations. PAOs are, hereby, advised to re-appropriate these funds, in consultation with Expenditure Wing, Finance Division, only for the purpose of Adhoc Relief Allowance in quarter 3 of CFY. In case of shortfall in ERE allocation during the fiscal year, re-appropriation of funds from Non-ERE 'Heads of Accounts' may be made on priority basis; Re-appropriation orders duly approved by the competent authority shall be provided to the Accounting Organizations/Offices for entry into SAP system. However, released funds shall remain within the prescribed quarterly limits given by the Finance Division in the Strategy for Release of Funds of CFY.' It was observed that a large number of cases for relaxation of cut-off date for re-appropriation of funds i.e. 31st May, under Section 11 of PFM Act 2019, are received in Finance Division during June every year. It has been decided that the re-appropriation orders shall only be considered, which duly approved by competent authority and following nature: For adjustment of excess expenditure booked in accounts offices. To meet shortfall under ERE heads of accounts; Unavoidable payments which mature in June; vi. Copies of the approved Re-appropriation Order shall be provided to the Expenditure Wing and Budget Wing (Budget Computerization Section) Finance Division for record and monitoring purposes. Copyright Business Recorder, 2025
Business Recorder
6 hours ago
- Business Recorder
Costly interest rates for TCP loans irk MoF
ISLAMABAD: Raising red flags over the high interest rates on loans secured by the Trading Corporation of Pakistan (TCP) from commercial banks, the Finance Ministry has called for a special audit to determine the rates agreed by TCP and whether more competitive terms were available at the time, sources told Business Recorder. According to TCP, of the total liability of Rs. 156.9 billion, Rs. 126 billion relates to urea procurement, while the remainder pertains to wheat. While progress has been made in reconciling the principal amounts, disputes persist over markup calculations and interest accruals. During a meeting of a National Assembly panel, officials from the Finance Division informed the committee that a total of Rs. 24 billion is required from the Utility Stores Corporation (USC) to settle dues with TCP. USC has committed to paying Rs. 6 billion, while the remaining Rs. 18 billion is to be covered by the government as a subsidy. Here is how much key interest rate has moved in last 12 months Of the total, Rs. 5 billion is available in the current fiscal year, while Rs. 15 billion has been proposed in the budget for FY 2025-26. This arrangement would allow for the complete Rs. 24 billion payment by USC, against a total principal liability of Rs. 93 billion. The Finance Division further stated that National Fertilizer Marketing Limited (NFML) owes Rs. 53 billion to TCP, to be settled on a 50:50 cost-sharing basis between the federal and provincial governments. Of the federal share of Rs. 26 billion, Rs. 10 billion is available for disbursement in the current fiscal year. However, the Ministry of Commerce has yet to move the necessary summary, and the Finance Division confirmed that no such summary has been submitted. An additional Rs. 15 billion has been proposed in the 'next fiscal budget. Finance officials emphasized that reconciliation among all relevant stakeholders is necessary before any payments or adjustments can be made. The Division clarified it could only proceed after the federal adjuster reconciled data is received, urging federal and provincial departments to expedite the process. TCP noted that prior to 2018, the reconciliation process was not institutionalized. Since then, however, all agreements with NFML have been documented. The Ministry of Industries and NFML, in coordination with provincial governments, are responsible for distributing urea procured by the federal government. TCP is tasked with procurement, including both principal and markup, while distribution responsibility lies with the provinces. The Ministry of Industries is required to obtain budgetary allocations from the Finance Division to settle the liabilities. Delays in these processes have contributed to accumulating interest. TCP stated that the agreed principal liabilities stand at Rs. 24 billion for USC and Rs. 53 billion for NFML. An additional Rs. 2.9 billion in markup has been agreed with USC, bringing its total payable to Rs. 26.8 billion. The National Assembly panel expressed concern over the uncapped accumulation of interest, pointing out that the Economic Coordination Committee (ECC) had made no specific provision for markup payments. TCP, however, argued that ECC-approved summaries covered both cash and credit arrangements, processed through the State Bank with full awareness that interest would apply. TCP clarified that markup arose due to staggered disbursements rather than any mismanagement. The Committee directed TCP to submit a breakdown distinguishing between delays in subsidy disbursement and contractual execution flaws. TCP explained that its commercial agreements with banks did not allow for renegotiation of interest rates, and therefore, markup liabilities could not be capped. The Finance Division acknowledged the constraints posed by the current Extended Fund Facility (EFF) with the International Monetary Fund (IMF), but confirmed that Rs. 15 billion each from USC and NFML—totalling Rs. 30 billion—had been proposed for FY 2025–26 andRs. 15 billion has already been released to TCP. Sources said TCP tried to challenge the Finance Division's demand for a special audit, but the National Assembly panel rejected the plea, advising TCP to address the matter directly with the Finance Ministry. Copyright Business Recorder, 2025
