Latest news with #PSO
Express Tribune
a day ago
- Business
- Express Tribune
Banks delay import payments
The price of local currency has started increasing gradually in both open and interbank markets Listen to article Commercial banks have once again started delaying import-related payments due to the limited availability of foreign currency, caused by major foreign debt repayments due before the end of June and the need to meet the reserves-related condition set by the International Monetary Fund (IMF). The situation warrants that the central bank either completely stop purchasing foreign currency from the markets or drastically reduce it to improve the supply of dollars, according to background discussions with multiple bankers. The State Bank of Pakistan (SBP) on Saturday did not provide an official version on the matter. Banking and market sources told The Express Tribune that some major and small banks were delaying import-related payments by two to three weeks, particularly in cases of open-account and contractual imports. The banks were also providing dollars for the clearance of letters of credit (LCs) to some major importers at rates higher than the interbank rate, they added. Because of the situation, the spread between the interbank and open market has started widening, and a few banks have again been compelled to ration the provisioning of dollars. The interbank rate was over Rs282 to a dollar, while in the open market the dollar was available close to Rs285, said banking and currency market sources. The situation is not as bad as the 2022 crisis, and it is high time that the central bank took notice to avoid any speculation in the market, said a senior executive of a private bank whose institution was also facing the challenge of ensuring sufficient dollar provision for import payments. Concerned authorities said on condition of anonymity that the local currency did come under pressure in both open and interbank markets. However, they said that it was a temporary phenomenon and would end soon. Pakistan State Oil (PSO) and Pak Arab Refinery Limited (PARCO) were also facing issues in getting the right price of the dollar for making payments against their imports. The sources said that PSO paid about Rs3 higher for its latest import payment compared to the previous contract. This would translate into a higher petrol price for consumers. Pakistan is scheduled to make $2.4 billion in foreign commercial debt repayments to China next month, in addition to payments to some other multilateral lenders. The foreign exchange reserves stand at $11.5 billion, which is not enough to make these payments and at the same time retain reserves in double digits. The IMF has also further tightened the end-June Net International Reserves (NIR) target to negative $7.5 billiona further tightening of $1.1 billion compared to the target agreed upon in September last year. To meet these targets and foreign debt repayments, the central bank is still purchasing dollars from the market. The end-March negative NIR target was $10.2 billion, which means the central bank needs an additional $2.7 billion cushion just to meet the end-June target, according to the IMF report. Another senior executive at a bank said that export and remittance proceeds were sufficient to cover imports, but the challenge lay with the financial account, which was putting pressure on the exchange rate. He said the central bank should refrain from buying dollars for a few weeks to ease market conditions. Representatives of the banking industry have already brought the issue of the emerging shortage of foreign currency to the attention of the central bank, according to those privy to the discussions. Despite the IMF programme, Pakistan has not received enough foreign loans this time. Central Bank Governor Jameel Ahmad said a few months ago that the SBP had bought over $9 billion from the local market in 2024 to build reserves. The SBP spokesperson did not respond to questions about the reasons behind the recent pressure on the rupee-dollar parity, or whether there was a backlog of about $1 billion in deferred import-related payments due to the dollar shortage. He also did not respond to questions regarding the increasing spread between the interbank and open market rates or the strategy the central bank is adopting to address the situation. The buying of dollars from the market has helped reduce foreign debt by $800 million during the first nine months of this fiscal year. A stable rupee has also played a major role in bringing down the inflation rate to low single digits. However, exporters complain that tight control over the dollar price is eroding their competitive edge, and they argue that market forces should be allowed to play their role. There is also a seasonal increase in demand for foreign currency due to Hajj, which central bank authorities expect will now subside.
Arab News
3 days ago
- Business
- Arab News
Minister says Pakistan State Oil to expand into renewable energy
KARACHI: Pakistan State Oil (PSO), the country's largest fuel supplier, is preparing to diversify its operations into renewable energy and emerging sectors of the energy market, Petroleum Minister Ali Pervaiz Malik said during a high-level visit to the company's Karachi headquarters on Thursday. The move signals a strategic shift in Pakistan's state-owned energy sector as it seeks to modernize infrastructure, reduce emissions and align with global trends toward sustainability. Malik's visit, part of a broader government outreach to key industry stakeholders, comes amid the government's continuing efforts to reform Pakistan's fossil fuel-reliant energy mix and enhance long-term resilience. 'The government is fully committed to steering Pakistan's energy sector toward greater resilience, sustainability and innovation,' Malik said during meetings with PSO leadership and board members. 'Enhancing fuel quality, reducing emissions and advancing the transition to clean energy are central to this vision.' During the visit, PSO's top management briefed the minister on the company's performance, supply chain stability and automation initiatives. Officials also outlined plans to modernize PSO's infrastructure and develop forward-looking strategies to enter the renewable energy space, though no specific projects were announced. Malik praised PSO's role in maintaining reliable fuel supplies nationwide and pledged the government's full support in helping the company address operational challenges. He emphasized that policy alignment and cross-sector coordination would be key to creating a more efficient and consumer-focused energy ecosystem. The minister also met with representatives of the Oil Companies Advisory Committee (OCAC) and the Petroleum Dealers Association, where discussions focused on regulatory bottlenecks, profit margins and broader sectoral reforms. He assured participants that their concerns would be addressed through structured engagement. 'In the best interest of the country, all stakeholders must collaborate with a shared commitment to progress,' Malik said. 'Together, we can build a modern energy sector that meets the evolving needs of our nation.' Pakistan has faced recurring energy crises in recent years, with high fuel import bills, inconsistent power supplies and delayed infrastructure upgrades straining the economy. While some private and semi-public entities have begun pivoting to renewables, PSO's potential entry into the sector is expected to mark one of the first serious moves by a major state player.
Business Recorder
3 days ago
- Business
- Business Recorder
Minister visits PSO House, holds series of high-level meetings
KARACHI: Federal Minister for Petroleum Ali Pervaiz Malik accompanied by Zafar Abbas, additional secretary Petroleum, Ministry of Energy (Petroleum Division), and Director/Deputy Secretary Waqas Ahmed Barlas, visited Pakistan State Oil (PSO) House, Thursday as part of a strategic outreach to key stakeholders in the petroleum sector. They were received by Chairman of the PSO Board of Management, Asif Baig Mohamed, and Abdus Sami, Chief Supply Chain Officer and currently officiating the managing director's office, PSO, along with senior members of the PSO leadership team. During the visit, the federal minister held a series of high-level meetings aimed at strengthening coordination and ensuring operational excellence across the sector. The minister engaged with PSO's top management to review the company's performance, supply chain resilience, and automation initiatives. He appreciated PSO for its pivotal role in ensuring a consistent and reliable supply of fuel across the country and the company's ongoing efforts to modernise its infrastructure and diversify its business model, particularly its forward-looking expansion into renewable energy and emerging segments of the energy market. Malik also met with representatives of the Oil Companies Advisory Committee (OCAC), including Syed Nazir Abbas Zaidi, secretary general, OCAC, members i.e. ZubairShaikh, CEO, Wafi Energy Pakistan, Zahid Mir, MD Pakistan Refinery Limited and Abdus Sami, Chief Supply Chain Officer, PSO. The discussions focused on key industry-wide challenges, regulatory developments, and the need for greater policy alignment to ensure a stable and efficient energy supply chain. In a separate session, the minister met with a delegation from the Petroleum Dealers Association, led by Chairman Abdus Sami Khan, where matters related to dealers' operational challenges and profit margins were brought to the table. The minister assured the dealers that their concerns would be duly considered and addressed through constructive dialogue. 'The government is fully committed to steering Pakistan's energy sector toward greater resilience, sustainability, and innovation. Our focus is on streamlining operations, resolving systemic issues, and fostering a balanced ecosystem that serves consumers and supports economic stability. Enhancing fuel quality, reducing emissions, and advancing the transition to clean energy are central to this vision.' 'In the best interest of the country, all stakeholders must collaborate with a shared commitment to progress. Together, we can build a modern energy sector that meets the evolving needs of our nation.' Malik added. The visit marked a significant step toward enhancing sector-wide collaboration and reinforced the government's commitment to a resilient and people-centred energy framework. Copyright Business Recorder, 2025
Irish Daily Mirror
4 days ago
- Business
- Irish Daily Mirror
Bus Éireann to spend €7 million on gift cards to reward staff for safe driving
Bus Éireann is set to spend around €7 million on gift cards for its staff to reward safe driving and other positive practices at work. The state-owned company, which relies heavily on public funding, recorded total losses of €2.2 million over the course of its two most recent financial years. It's now seeking tenders for the supply of pre-loaded gift cards for its staff members, which will be used to reward positive performance, such as safe driving and employee referrals. The estimated value of the contract for the supply of the gift cards is €7 million excluding VAT, according to tender documents, and it's for a period of five years with two possible 12-month extensions. Bus Éireann has specified that the gift cards it will purchase must be universally accepted in Ireland, but they will not be redeemable for the purpose of online gaming or gambling. The cards must remain valid for at least one year and recipients should be able to check the balance of each card by phone, online, or in store, the tender states. They will use debit card technology and will not feature the name of the beneficiary. 'Bus Éireann seeks to engage the services of a qualified agency to provide pre-loaded gift cards for its staff,' it said. 'The main demand will be for bonus cards for driving staff and engineering staff. The cards will be required in varying denominations.' The successful supplier will be required to deliver the cards to the company's offices throughout the country based on 'award lists' provided by Bus Éireann. They will be purchased in batches at various times during the year. The bus and coach operator receives significant public funding and was awarded a five-year contract worth €1.2 billion last year for services on Public Service Obligation (PSO) routes. In 2022, it recorded a €1.5 million loss, and a further loss of €700,000 the following year despite revenues rising by 14 per cent to €583.7 million, and passenger journeys climbing nearly 20 per cent to 107 million. Tenders for the €7 million contract for the supply of gift cards must be received by June 24, according to the company. Bus Éireann did not respond to a request for comment.
Express Tribune
6 days ago
- Business
- Express Tribune
PSX closes in the red over budget caution
The Pakistan Stock Exchange (PSX) started the week on a bearish note on Monday as the KSE-100 index fell 882 points over investor caution ahead of the federal budget for fiscal year 2025-26, which has been delayed to June 10. Additionally, the delay in International Monetary Fund's (IMF) approval of Pakistan's circular debt resolution plan further dampened market sentiment. However, trading activity remained robust, with volumes standing at 636 million shares and traded value at Rs18.6 billion. According to Ahsan Mehanti of Arif Habib Corp, stocks closed lower amid pressure in the pre-budget session. Reports of higher petroleum levies and concerns over the pending IMF approval of the circular debt resolution plan alongside delay in federal budget, which will now be presented on June 10, impacted market sentiment. Mehanti added that rupee depreciation and geopolitical tensions also played a role in bearish activity at the PSX. At the end of trading, the benchmark KSE-100 index recorded a decrease of 881.55 points, or 0.74%, and settled at 118,221.12. In its review, Topline Securities remarked that the bourse experienced profit-taking as uncertainty continued to weigh on investor sentiment. The KSE-100 index shed 882 points and closed at 118,221, after touching the intra-day low of 952 points. The bearish trend was primarily driven by concerns over delay in the federal budget announcement and the lack of clarity about the IMF conditions tied to it. In the absence of positive triggers, investors chose to trim their positions and adopt a cautious stance, it said. K-Electric led the volumes chart with 247 million shares traded, closing at its upper circuit, following news that the company had secured a dollar-linked tariff for its transmission and distribution business. Energy stocks came under pressure amid rumours of a potential delay in the clearance of circular debt, with Pakistan Petroleum Limited (PPL), Oil and Gas Development Company (OGDC) and Pakistan State Oil (PSO) emerging as major losers. Engro Holdings, Systems Limited, PSO, Fauji Fertiliser Company and OGDC erased 452 points from the index, Topline added. In its commentary, Arif Habib Limited (AHL) noted that the week started off on a negative note, with the KSE-100 index falling towards the 118,000-point range. Some 30 shares rose while 66 fell. K-Electric (+21.19%), Pakistan Services Limited (+8%) and Attock Refinery (+4.03%) contributed the most to index gains while Engro Holdings (-1.82%), Systems Limited (-3%) and PSO (-3.46%) were the biggest drags, AHL said.0 It pointed out that the National Electric Power Regulatory Authority (Nepra) had approved K-Electric's multi-year distribution tariff for the period FY24 to FY30. The company had proposed a seven-year tariff control period to facilitate long-term investment. For FY24, the average distribution tariff has been set at Rs3.31 per kilowatt-hour (kWh) while the use-of-system charge has been fixed at Rs1,348.66/kW per month. "The KSE-100 is declining into support of the large price gap, from where the upside is expected to resume and breach 120,000 points," AHL stated. JS Global analyst Muhammad Hasan Ather commented that the KSE-100 fell 0.8% to the intra-day low of 118,150 as investor sentiment weakened due to the government's delay in presenting the federal budget and ongoing uncertainty surrounding the IMF's fiscal targets. "Market direction is contingent on clarity from the upcoming IMF discussions and the budget announcement; volatility is likely to persist until fiscal policy details are finalised," Ather said. Overall trading volumes increased to 635.5 million shares compared with Friday's tally of 338 million. Shares of 467 companies were traded. Of these, 188 stocks closed higher, 235 fell and 44 remained unchanged. K-Electric was the volume leader with trading in 246.9 million shares, gaining Rs1 to close at Rs5.72. It was followed by WorldCall Telecom with 36.7 million shares, gaining Rs0.02 to close at Rs1.27 and Telecard Limited with 30 million shares, gaining Rs0.93 to close at Rs8.22. During the day, foreign investors sold shares worth Rs90.4 million, the National Clearing Company reported.
