Govt slashes petrol price by Rs7.54, hikes diesel by Rs1.48 per litre
The rate for high-speed diesel was also hiked by Rs1.48 per litre, taking it to Rs285.83 per litre.
In a notification, the Finance Division stated that the new prices will take effect from August 1, 2025.
In the last fortnightly review, the government had increased the petrol price by Rs5.36 per litre to Rs272.15, and diesel by Rs11.37 per litre to Rs284.35.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
3 hours ago
- Business Recorder
Consolidated fiscal operations
EDITORIAL: The summary of consolidated federal and provincial fiscal operations 2024-25 was uploaded on the Finance Division website on 5 August and presented a picture that challenges the government's claim that reforms are underway in all sectors to ensure that the ongoing thirty-nine-month International Monetary Fund (IMF) programme is the last one Pakistan would need to secure. The outlay of most concern to the general public is the sustained rise in current expenditure as a percentage of Gross Domestic Product on three counts: (i) it comprised 95 percent of total outlay in 2024-25 compared to 84 percent in 2022-23 as per the summary of the consolidated fiscal operations of that year; (ii) current expenditure was budgeted at around 17 trillion rupees in 2024-25 while the government spent 15.69 trillion rupees with 1.6 trillion rupees savings attributed to the decline in the discount rate — from 22 percent in June last year to 11 percent in the current year; however (iii) mark-up payments as a major component of current expenditure were 8,159,826 million rupees in 2023-24 against 8,887,417 million rupees in 2024-25 indicative of an increased reliance on borrowing by the government — up to 7,089 billion rupees last fiscal year as reported in the summary. Federal tax revenue rose to 11,744 billion rupees in 2024-25 against 9,311 billion rupees in 2023-24 — with the major increase attributed to increase in direct taxes (disturbingly consisting of withholding taxes levied in the sales tax mode) — an indirect tax — though wrongly credited under direct taxes in spite of the Auditor General's exhortation to the FBR to abandon this practice. The incidence of indirect taxes on the poor is greater than on the rich. Non-tax revenue increased from 3,050.4 billion rupees in 2023-24 to 4,905.9 billion rupees in 2024-25 due to higher petroleum levy collections (again an indirect tax) and more than doubling of State Bank of Pakistan profits which mopped up USD 8 billion from the open market last fiscal year to shore up dollar reserves that at USD 14.3 billion (25 July) are still lower than the USD 16 billion rollovers from friendly countries, leading to an erosion in the external value of the rupee. SBP has since agreed to ease purchases in the open market. Development expenditure rose from 635,148 million rupees in 2023-24 to 785,836 million rupees in 2024-25 — a rise that indicates authorisations as noted by the Planning Ministry however not disbursed due to fiscal constraints. The Finance Committee of parliament was informed that 596 billion rupees had been disbursed by end-May 2025, and it is rather difficult to accept that the government disbursed a whopping 189.8 billion rupees in June this year, the last month of the fiscal year. GDP (nominal) was estimated at 106,045 billion rupees in 2023-24 and 114,692 billion rupees in 2024-25, which implies an 8 percent rise, though actual GDP growth for last fiscal year was 2.6 percent. This may have led to an erosion in the rupee value which remained remarkably constant with the IMF documents exhorting the government to 'monitor the recent Real Effective Exchange Rate appreciation to avoid eroding competitiveness,' and/or a reduction in Consumer Price Index though that declined to 11.09 percent in 2024-25 against 28.31 percent in 2023-24. Bank borrowing by the provinces rose to negative 920,434 billion rupees against negative 212,157 billion rupees that no doubt contributed to claims of a surplus while non-bank also rose from negative 1022 billion rupees to 29,430 billion rupees. Sales tax on services (constitutionally a provincial tax) rose from 504,617 million rupees in 2023-24 to 612,418 million rupees in 2024-25 with Sindh continuing to take the lead at 284,427 million rupees (raising collections by 24.8 percent in comparison to 2023-24), Punjab collecting 264,026 million rupees (raising collections under this head by 17.6 percent compared to 2023-24), KPK at 40,772 million rupees (13.5 percent rise from the previous year) and Balochistan at 23,193 million rupees (7.7 percent increase). To conclude, the economic team managed to contain the primary balance to 6,168 billion rupees in 2024-25 against 9,529 billion rupees the year before while the budget deficit declined from 7,207 billion rupees in 2023-24 to 6,168 billion rupees in 2024-25; however, this was largely due to heavier borrowing in 2024-25. Copyright Business Recorder, 2025
Business Recorder
3 hours ago
- Business Recorder
SOEs: streamlining board position appointments recommended
ISLAMABAD: The Cabinet Committee on State-Owned Enterprises (CCoSOEs) recommended for reviewing and streamlining the appointment process for board positions in state-owned enterprises to avoid administrative delays and ensure continuity. The committee meeting was held on Wednesday under the chairmanship of Federal Minister for Finance and Revenue Muhammad Aurangzeb, who participated in the proceedings online. The committee considered and approved a proposal from the Ministry of Commerce for filling vacant positions on the Board of Trading Corporation of Pakistan (TCP). The committee endorsed the nomination of Aasim Aziz Siddiqi as Chairman of the Board of TCP, Ayesha Aziz as Independent Director, and Shoaib Mir Memon as Chairman of the Board of Pakistan Reinsurance Company Limited (PRCL). Finance Division in its latest bi-annual report on federal SOEs fiscal year 2025 (6 months) (July 2024 to December 2024) noted that despite total assets increased to Rs429 billion, of which, Rs225 billion is government receivables, TCP's equity base remains weak at Rs111.5 billion. The sharp increase in surplus on revaluation of assets, now at Rs86.3 billion, provides temporary balance sheet strength but is non-cash and non-operational. Such a capital structure suggests that real equity available for leveraging is much lower, and any adverse movement in receivables or disputes could quickly erode operational capacity. Additionally, the pending litigation and un-provided tax contingencies are worth Rs12.1 billion further aggravate risks, requiring business plan recalibration toward legal risk mitigation. The receivables situation concerns the business plan. Rs8.49 billion in trade debts from government entities remain unconfirmed for over six years, while Rs17.07 billion (including mark-up) is stuck in disputes with sugar mills, now with NAB. This underlines structural weaknesses in TCP's receivables management, reflecting both poor enforcement of contracts and insufficient financial oversight. A robust receivables collection strategy must be part of the business plan, pushing for strict government backing for timely recoveries and a phased write-off or provisioning strategy, it added. The committee further advised the relevant ministries, including the Finance Division, to review and streamline the appointment process for board positions in state-owned enterprises. It recommended initiating the process well in advance of the incumbents' retirement to avoid administrative delays and ensure continuity. The committee also approved the appointment of three ex-officio members to the Board of Directors of Postal Life Insurance Company Ltd, as proposed by the Ministry of Communications. The ministry was directed to submit a summary for the nomination of the chairman of the board from among the four independent directors already serving, in order to make the Board functional and enable decisive progress on the entity's restructuring and potential winding-up, as it remains on the privatisation list. Additionally, the cabinet committee reviewed a proposal from the Ministry of Industries and Production regarding the reconstitution of the Board of Directors of the Small and Medium Enterprises Development Authority (SMEDA). The Committee approved a panel of six private sector members for appointment as independent directors, including Saif Ali Rastgar (Punjab), Mashood Khan (Sindh), Osman Saifullah Khan (Khyber Pakhtunkhwa), Israr Khan Kakar (Balochistan), Aasia Saail Khan (representing women), and Dr Syed Zahoor Hassan (development sector). The meeting concluded with a briefing by the Ministry of Science and Technology on the restructuring and renaming of the Scientific and Technological Development Corporation of Pakistan as the Indigenous Research and Development Agency (IRADA), in line with a prior decision of the committee. The chair appreciated the reform initiative, noting that the objective of the restructuring was to enhance the organisation's effectiveness, and expressed hope that IRADA would fulfil its envisioned mandate and contribute meaningfully to the national innovation ecosystem. The meeting was attended by Federal Minister for Housing and Works Mian Riaz Hussain Pirzada, Federal Minister for Commerce Jam Kamal Khan, Chairman SECP, federal secretaries, and senior officials from relevant ministries and government departments. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business Recorder
ECC approves rollout of EV subsidy, other grants
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved the rollout of electric vehicle subsidy, besides a technical supplementary grant (TSG) of Rs30 billion for clearing reimbursement claims of remittance scheme during fiscal year 2024-25 The ECC of the Cabinet met on Tuesday under the chairmanship of the Federal Minister for Finance and Revenue, Muhammad Aurangzeb, who joined the proceedings virtually. The meeting deliberated on several key economic matters, including the rollout of a new energy vehicle policy, extension of grants-in-aid for Quaid-e-Azam University (QAU), and approval of a TSG related to the Telegraphic Transfer Charges Incentive Scheme. EV subsidy: 116,000 electric bikes, 3,170 electric rickshaws/loaders to be introduced The committee considered and approved a summary submitted by the Ministry of Industries and Production regarding the implementation of a subsidy scheme to promote the adoption of electric bikes and rickshaws/loaders to citizens of Pakistan. A budgetary provision of Rs9 billion has already been made for fiscal year 2025-26 to finance this initiative. The scheme also includes the provision of free electric bikes to top-performing students of government colleges. As per the approved plan, 116,000 electric bikes and 3,170 electric rickshaws/loaders will be introduced in two phases. In the initial phase, expected to be launched by the prime minister shortly, 40,000 electric bikes and 1,000 electric rickshaws/loaders will be rolled out. The ECC also reviewed and approved a technical supplementary grant of Rs30 billion, requested by the Finance Division, to settle outstanding claims from the previous fiscal year amounting to Rs58.26 billion under the Telegraphic Transfer Charges Incentive Scheme. The committee directed the Finance Division to coordinate with the State Bank of Pakistan (SBP) to work out the payment modalities for the grant. It also instructed the Finance Division to complete a detailed assessment, including analysis of pros and cons, financial modalities, and opportunity cost of the Pakistan Remittance Initiative, in collaboration with the SBP, and present its final recommendations incorporating stakeholder feedback by mid-September, following a thorough analysis due by the end of August. Additionally, the ECC approved in principle a bailout grant of Rs2 billion for QAU, contingent upon the preparation and presentation of a comprehensive financial self-sustainability plan. The university, in collaboration with the Higher Education Commission, is required to submit a clear roadmap outlining the strategy to achieve long-term financial stability and reduce dependency on future bailout packages. The meeting was attended by Federal Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Petroleum Ali Pervaiz Malik, Minister for National Food Security and Research Rana Tanveer Hussain, along with senior officials from relevant ministries, divisions, and departments. Copyright Business Recorder, 2025
