Latest news with #FinanceDivision
Arab News
10 hours ago
- Business
- Arab News
Pakistan earmarks $3.5 billion for development projects in upcoming budget
ISLAMABAD: Pakistan's Planning Minister Ahsan Iqbal said on Monday that the Finance Division has allocated Rs1 trillion ($3.5 billion) for development projects in the upcoming budget for fiscal year 2025-26. The 2025–26 budget is expected to be presented by Finance Minister Muhammad Aurangzeb in Pakistan's lower house of parliament on June 10, following the Eid Al-Adha holidays, after the government postponed an earlier date of June 2. Providing the breakdown $3.5 billion development budget, Iqbal said Rs664 billion ($2.3 billion) would be allocated to infrastructure projects, including energy, water, transport, physical planning and housing. 'Prime Minister Shehbaz Sharif has directed that Rs120 billion ($426.7 million) be allocated for N25 Chaman-Quetta-Karachi Expressway,' he said at a press conference in Islamabad. 'Rs150 billion ($533.3 million) are for social sectors, special areas, including Azad Jammu and Kashmir and Gilgit-Baltistan, have been allocated Rs63 billion ($223.9 million), and merged [tribal] districts in Khyber Pakhtunkhwa have been allocated Rs70 billion ($248.4 million).' Similarly, Rs53 billion ($188.3 million) have been earmarked for science and information technology, Rs9 billion ($32.2 million) for governance and reform projects, and Rs11 billion ($39.1 million) for production sectors, according to the minister. 'The majority [of allocation] is for water, power and highway sector,' he added. Late last month, Iqbal said Pakistan's defense spending would be hiked in the upcoming budget as the military would 'certainly require' more financial resources to defend the country against India. But neither Iqbal nor any other government official has so far shared any figures. Pakistan's defense budget currently stands at Rs2.122 trillion ($7.53 billion). The remarks came days after Pakistan and India attacked each other with missiles, drones and artillery in their worst conflict in decades that killed around 70 people on both sides. The two nations agreed to a ceasefire on May 10 after four days of hostilities sparked by a militant attack on tourists in Indian-administered Kashmir in April. Pakistan's annual inflation rate rose to 3.5% in May, though the country's macroeconomic outlook has improved in recent months, supported by a stronger current account balance, increased remittances and declining inflation. Authorities remain cautious as they aim to build on recent economic stabilization, guide the country toward gradual growth, and reaffirm their commitment to ongoing economic reforms.
Arab News
2 days ago
- Business
- Arab News
Pakistan hikes petrol price by Rs1 per liter till next fortnight
ISLAMABAD: Pakistan's government has decided to increase the price of petrol by Rs1 per liter till the next fortnight as per the recommendations of the Oil and Gas Regulatory Authority (OGRA) and relevant ministries, the Finance Division announced recently. Petrol is primarily used in Pakistan for private transportation, including small vehicles, rickshaws and two-wheelers. Diesel, on the other hand, powers heavy vehicles used for transporting goods across the country. 'The government has decided the following prices of petroleum products for the fortnight starting tomorrow, based on the recommendations of OGRA and the relevant ministries,' the Finance Division said in a statement on Saturday. After the latest revision in prices, a liter of petrol will cost Rs253.63 while the government has kept the rate of diesel unchanged at Rs254.64 per liter. Fuel prices in Pakistan are reviewed and adjusted on a fortnightly basis. This mechanism ensures that changes in import costs are reflected in consumer prices, helping to sustain the country's fuel supply chain. The Finance Division kept the price of petrol unchanged and slashed the rate of high-speed diesel by Rs2 per liter during its last review on May 16. The new price of petrol has already taken effect.
Business Recorder
2 days ago
- Business
- Business Recorder
Petrol price increased, diesel's unchanged
ISLAMABAD: The price of petrol has been increased by Rs 1.00 per litre to Rs 253.63, effective from June 1, 2025, as announced by the Finance Division on Saturday. However, the rate for high-speed diesel (HSD) will remain stable at Rs 254.64 per litre for the next two weeks. According to a late-night statement from the Finance Division, this adjustment follows the advice of the Oil and Gas Regulatory Authority (OGRA) and relevant government bodies. While the ex-refinery price of petrol is increased from Rs 151.80 to Rs 154.55 per litre, the government mitigated the full impact on consumers by significantly reducing the Inland Freight Equalization Margin (IFEM) from Rs 6.30 to Rs 4.55 per litre. The petroleum levy (PL) on both petrol (Rs 78.02 per litre) and HSD (Rs 77 per litre) remains unchanged. Additionally, the price of kerosene oil has seen a slight increase from Rs 250.14 to Rs 251.13 per litre. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business
- Business Recorder
Govt increases petrol price by Re1, keeps diesel rate unchanged
The federal government on Saturday increased the price of petrol by Re1, taking the rate to Rs253.63 per litre. 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.
Express Tribune
3 days ago
- Business
- Express Tribune
K-P seeks FED hike on gas, levy on oil
The Finance Ministry has raised concerns over the financial management of the oil and gas sector. PHOTO: PEXELS Listen to article The provincial government run by Pakistan Tehreek-e-Insaf (PTI) in Khyber-Pakhtunkhwa (K-P) has demanded that the federal government increase federal excise duty (FED) on gas as well as introduce a similar levy on oil in the upcoming budget for fiscal year 2025-26. Sources told The Express Tribune that special assistant to the K-P chief minister on energy and power took up the matter in a recent meeting with representatives of the federal government. He apprised them that the FED on gas had not been revised for a long time and the duty had not been imposed on oil despite repeated requests from the provincial government. Consequently, he said, Article 161 of the Constitution remains unimplemented. He requested the urgent attention of the federal government towards revising the FED on gas, based on the Consumer Price Index (CPI), and imposition of FED on oil in the upcoming budget. K-P has emerged as a major oil and gas producing province. Therefore, it wants more revenue on the hydrocarbon production. During the meeting, the federal and provincial governments decided that the director (oil) would carry out a consumer impact analysis in consultation with the K-P government and place the matter before the prime minister for a decision. In the meantime, the provincial government may also request the Finance Division and the Federal Board of Revenue (FBR) to include the FED on oil in the FY26 budget. Regarding the FED on gas, it was decided that the director (gas) would conduct a consumer impact analysis in consultation with the K-P government and place the matter before the prime minister for a decision. Meanwhile, the provincial government may also ask the Finance Division and the FBR to revise the FED on gas in the budget. Moratorium on gas connection The K-P government has also requested the federal government to relax the moratorium on new gas connections on an immediate basis in its oil and gas producing districts. These districts are arguing that it is their right to receive gas supply. However, there have been many cases in some K-P districts where residents are receiving direct gas supply without paying bills, causing increase in the circular debt. In order to expedite the execution of new gas development schemes in the oil and gas producing districts of K-P, it was decided that the director general (gas) would share cost estimates with the Energy & Power Department of the province. These schemes will be executed on a cost-sharing basis between Sui Northern Gas Pipelines Limited (SNGPL) and the K-P government through the provision of funds in the FY26 budget. The special assistant to the K-P CM also drew attention towards the forced curtailment of gas supply from various fields in the province, which has not only resulted in production losses and damage to reservoirs, but also caused substantial revenue loss to the provincial government in the form of royalties, windfall levy, etc. He requested the establishment of a mechanism to avoid the forced reduction of oil and gas production at local fields in the best interest of both the province and the federal government.
