Latest news with #077
Business Recorder
6 days ago
- Business
- Business Recorder
Crescent Star Insurance eyes 38% stake in SG Power Limited
Crescent Star Insurance Limited (CSIL) plans to acquire approximately 6.78 million shares, representing 38.05% of the issued and paid-up capital of SG Power Limited. CSIL disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Wednesday. 'On behalf of the acquirers, we are pleased to submit the enclosed public announcement of intention to acquire approximately 6,785,236 ordinary shares of S.G Power Limited, representing approximately 38.05% of the total issued and paid-up capital of the target company,' said Intermarket Securities Limited, appointed as the manager to the offer, in its notice. The acquisition is subject to all requisite regulatory approvals, including from the Securities and Exchange Commission of Pakistan (SECP). As per the notice, CSIL reserved the right to withdraw the offer. Crescent Star Insurance eyes Rs400mn property in Karachi Crescent Star Insurance Limited is a registered insurer with the SECP with a paid-up capital of R1,077 million. The company, established in 1957, has been underwriting general insurance business of motor, health, fire, marine, engineering, travel, livestock, crop and miscellaneous across Pakistan. Meanwhile, SG Power Limited was incorporated in Pakistan on February 10, 1994, under the Companies Ordinance,1984. It is involved in the generation and supply of electric power to its associated company of SG Allied Businesses Limited.
Express Tribune
03-07-2025
- Business
- Express Tribune
New levies to raise fuel oil prices
OCAC urged the Special Investment Facilitation Council to intervene and recommend the withdrawal of petroleum and climate support levies on furnace oil, which would help restore policy consistency and support critical sectors. PHOTO: FILE Listen to article The Oil Companies Advisory Council (OCAC) has cautioned the Special Investment Facilitation Council (SIFC) that the climate support and petroleum levies on furnace oil have become effective from July 1, 2025, which will raise its price by over 80%, making many industries, shipping services and independent power producers (IPPs) unviable. In a letter sent to SIFC, OCAC Chairman Adil Khattak said that the advisory council and its member companies had expressed deep concern and protested over the imposition of petroleum levy of Rs82,077 per metric ton on furnace oil through the Finance Act 2025. "This levy, in addition to the Climate Support Levy of Rs2,665 per metric ton, poses a serious threat to the overall business environment," he said. "While we acknowledge and appreciate the support extended by the Special Investment Facilitation Council in securing an interim relief from the government – through the recovery of inadmissible general sales tax (GST) on petroleum products via the inland freight equalisation margin (IFEM), this remains a temporary measure with limited scope," he said and demanded a sustainable solution by restoring the taxable status of currently exempt petroleum products, ie, motor spirit (petrol), high-speed diesel (HSD), kerosene oil and light diesel oil (LDO). He called SIFC's continued support pivotal until full and permanent resolution of the matter. Khattak stated that the abrupt imposition of levies on furnace oil without prior consultation with the industry reflects a complete disconnect from the economic and operational challenges being faced by the sector. Furnace oil is a deregulated product and its pricing is governed by market forces. It is mainly used to meet energy needs of the domestic industry. "The imposition of such a substantial fiscal burden will have widespread and adverse financial repercussions across multiple business sectors, threatening their viability and long-term sustainability," he remarked. OCAC said that the new levies would increase furnace oil prices by approximately 80%, making its use economically unviable for key industries such as cement, shipping, textile, glass, tyre manufacturing, large-scale industrial units, foundries and other sectors reliant on boilers and furnaces (commonly referred to as general trade). This drastic price increase would eliminate domestic furnace oil demand and cause a sharp decline in industrial activity, potentially resulting in partial or complete operational shutdowns, especially where no viable fuel alternatives exist, it warned. In the letter, OCAC underscored that this measure was in direct contradiction to the government's stated commitment to promoting domestic manufacturing. Rather than enhancing revenues, it is likely to significantly reduce or eliminate furnace oil sales within the country, thereby slashing associated sales tax revenues and undermining industrial competitiveness. "It will also defeat the objective of collecting the envisaged revenue through the imposition of petroleum and climate support levies." In the absence of domestic demand, the advisory council said, local refineries would be forced to export furnace oil at a considerable financial loss. This will further strain the financial condition of Pakistan's refining sector and compromise its sustainability. It pointed out that the government had recently renegotiated tariffs with furnace oil-based IPPs but the new levies would substantially increase fuel costs, pushing those plants lower on the merit order and rendering them inactive. "This will nullify the gains from recent renegotiations while still obligating the government to make capacity payments, effectively increasing the burden on national finances." In light of the above, OCAC urged SIFC to intervene and recommend the withdrawal of petroleum and climate support levies on furnace oil. It believes this will help restore policy consistency, support critical sectors of the economy and uphold the principles of fair and sustainable economic development. "We remain committed to engaging in constructive dialogue and are available for an urgent meeting to further discuss this matter in the national interest," the OCAC chairman added.
Business Recorder
02-07-2025
- Business
- Business Recorder
SIFC's intervention sought: OCAC, members say concerned over imposition of PL on furnace oil
ISLAMABAD: The Oil Companies Advisory Council (OCAC) and its member companies have expressed deep concern and strong protest regarding the imposition of a petroleum levy (PL) of Rs82,077 per metric ton on furnace oil (FO), effective July 1, 2025, through the Finance Act, 2025, seeking Special Investment Facilitation Council (SIFC)'s intervention in the matter. In a letter to the SIFC national coordinator, OCAC Chairman Adil Khattak has stated that this levy comes in addition to climate support levy (CSL) of Rs2,665 per metric ton on FO, and poses a serious threat to the overall business environment in the country. 'While we acknowledge and sincerely appreciate the support extended by the SIFC in securing interim relief from the Government of Pakistan through recovery of inadmissible general sales tax (GST) on petroleum products through the Inland Freight Equalization Margin (IFEM) mechanism, we would like to emphasise that this remains a temporary measure with limited scope. A sustainable solution requires the restoration of the taxable status of currently exempt petroleum products i.e. motor spirit (MS), high-speed diesel (HSD), kerosene, and light diesel oil (LDO). The SIFC's continued support is pivotal till the full and permanent resolution of this matter. The abrupt imposition of PL and CSL on FO without prior consultation with the industry signals a total disconnect from the economic and operational challenges currently being faced by the industry. FO is a deregulated product, and its pricing is governed by market forces. It is mainly used for meeting energy needs of our domestic industry.' He said the imposition of such a substantial fiscal burden will have widespread and adverse financial repercussions across multiple sectors of businesses, threatening their viability and long-term sustainability. The letter stated: In this context, we respectfully submit the following points for your urgent consideration: The imposition of PL and CSL will increase FO prices by approximately 80 per cent, making its use economically unviable for key industries such as cement, shipping, textiles, glass, tyre manufacturing, large-scale industrial units, foundries, and other sectors relying on boilers and furnaces (commonly referred to as general trade). This drastic price increase will eliminate FO domestic demand and drive a sharp decline in industrial activity, potentially resulting in partial or complete operational shutdowns-especially where no viable fuel alternatives exist. This measure stands in stark contrast to the Government of Pakistan's stated commitment to promoting domestic manufacturing. Rather than enhancing revenues, it is likely to significantly reduce or eliminate FO sales within the country, thereby, decreasing associated sales tax revenues and undermining industrial competitiveness. Additionally, it would also defeat the objective of collection of envisaged revenue by imposing PL and CSL on FO. Khattak stated that the imposition of climate support and petroleum levies on FO effective July 1, 2025 will raise its price by more than 80 per cent making many industries, shipping and IPPs unviable. 'It is fashionable to blame IMF for everything under the sun but the two probable reasons given: to cut down carbon emissions or meet the revenue shortfall do not justify this ill-advised decision,' he said, adding that if industrial and power production is to be sacrificed to reduce greenhouse emissions then would not Thar coal be the next target; after all the Bretton Woods Institutions both IMF and World Bank discourage use of coal. The revenue expected from PL is also going to be a pipe dream as the price increase would wipe off local sales. Copyright Business Recorder, 2025
Business Recorder
02-07-2025
- Business
- Business Recorder
OCAC seeks SIFC intervention over petroleum levy on furnace oil
The Oil Companies Advisory Council (OCAC) has sought intervention from the Special Investment Facilitation Council (SIFC) over the government's decision to impose a petroleum levy (PL) of Rs82,077 per metric ton on furnace oil (FO), Business Recorder learnt on Wednesday. 'On behalf of the Oil Companies Advisory Council and its member companies, we express our deep concern and strong protest regarding the imposition of a Petroleum Levy of Rs82,077 per metric ton on Furnace Oil, effective July 1, 2025, through the Finance Act, 2025,' the OCAC wrote in a letter to the SIFC, dated July 1, 2025. 'This levy comes in addition to Climate Support Levy (CSL) of Rs2,665 per metric ton on FO, and poses a serious threat to the overall business environment in the country,' it added. President Zardari gives assent to Finance Bill 2025 In a separate statement, OCAC chairman Adil Khattak said the imposition of climate support and petroleum levies on FO would raise its price by more than 80% making many industries, shipping and independent power producers (IPPs) unviable. 'It is fashionable to blame IMF [International Monetary Fund] for everything under the sun but the two probable reasons given: to cut down carbon emissions or meet the revenue shortfall do not justify this ill advised decision. 'If industrial and power production is to be sacrificed to reduce greenhouse emissions then wouldn't Thar coal be the next target; after all the Bretton Woods Institutions both IMF and World Bank discourage use of coal,' he said. According to Khattak, the revenue expected from the petroleum levy (PL/PDL) is also going to be 'a pipe dream' as the price increase would wipe off local sales. 'The refineries forced to export it's total FO production would face substantial loss due to increase in logistics cost and discounted export prices causing substantial dent in their upgrade plans already on hold due to non- resolution of the sales tax issue on permanent basis in spite of numerous meetings and assurances. 'We expect support from Petroleum Minister who, within a short period of assuming office, has proved his grit not only in understanding complex challenges but taking these head-on. We also hope that SIFC would play an effective role in withdrawal of PDL on FO and permanent resolution of the sales tax issue paving the way for the long awaited $6 billion investment in refineries upgrade,' Khattak said. FO is a deregulated product, and its pricing is governed by market forces. It is mainly used for meeting energy needs of domestic industry. The OCAC in the letter argued that the imposition of what it called a substantial fiscal burden would have widespread and adverse financial repercussions across multiple sectors of businesses, threatening their viability and long-term sustainability. 'This measure stands in stark contrast to the Government of Pakistan's stated commitment to promoting domestic manufacturing. Rather than enhancing revenues, it is likely to significantly reduce or eliminate FO sales within the country, thereby decreasing associated sales tax revenues and undermining industrial competitiveness. Additionally, it would also defeat the objective of collection of envisaged revenue by imposing PL and CSL on FO.' Downstream oil sector deregulation: OCAC refuses to endorse any future road map The letter further stated that imposition of PL and CSL would substantially increase fuel costs, and it also would nullify the gains from recent renegotiations with the IPPs while still obligating the government to make capacity payments effectively increasing the burden on national finances without any corresponding benefit. 'In light of the above, we strongly urge SIFC to intervene and recommend the withdrawal of the PL & CSL on FO. This will help restore policy consistency, support critical sectors of the economy, and uphold the principles of fair and sustainable economic development,' OCAC said.
The Star
11-06-2025
- Business
- The Star
Tmn Impian Emas folk use recycling revenue for events to foster ties
Muhammad Imran weighing a bag of recyclables at the Perita recycling centre in Taman Impian Emas, Johor Baru. A neighbourhood-led recycling centre in Iskandar Puteri is quietly making an impact, having collected nearly 20 tonnes of recyclable materials since it was launched almost four years ago. The Community Recycling Centre under Impian Utara 6B Residents Association (Perita) has become a key part of daily life for Taman Impian Emas residents, offering a convenient way to manage waste and contribute to sustainability. Its recycling committee chairperson Muhammad Imran Ismail said the centre was part of a wider movement to empower residents to manage recyclable waste at a time that suited them. Established in October 2021 through funding from the Iskandar Puteri Low Carbon Community Grant 1.0, the centre started with regular awareness campaigns to get residents on board with the idea of sorting recyclables at home before disposal. 'The initiative is guided by local academics who also reside in the area, forming a close-knit partnership with Perita,' he said. Muhammad Imran said the recycling centre had collected 19,967kg of recyclable items, including paper, aluminium cans, glass bottles, plastics and e-waste. He said this had generated an income of RM9,577, which was used to support centre operations and community programmes in the area. In addition, he said the centre had collected 660 litres of used cooking oil, equivalent to RM1,077. 'Community response has been overwhelmingly positive, with many residents requesting expanded facilities, such as specific stations for electronic waste and workshops for upcycling old items into useful products,' he added. Muhammad Imran said based on its records, paper-based materials accounted for 59.4% of all items collected, making it the top category. He said this included boxes, newspapers, coloured paper, and books while plastic accounted for 13%, glass bottles 10%, scrap metal 7.6%, e-waste 6.6% and used cooking oil 3.4%. 'Revenue from recycling is primarily used to cover operational costs and maintenance of the centre. 'Any surplus funds are channelled into the Perita community fund, which benefits all residents. 'While there is no fixed allocation for the proceeds, the funds have allowed us to organise community events like Malaysia Day and the Mid-Autumn Festival,' he said. Muhammad Imran said these events helped to strengthen neighbourhood bonds while promoting sustainability and collective responsibility. He said the association planned to explore more upcycling workshops and expand recycling categories in response to residents' feedback and growing environmental awareness.
