Latest news with #Rs168
Express Tribune
02-04-2025
- Business
- Express Tribune
PM likely to announce Rs8 per unit power tariff reduction on April 3
Listen to article Prime Minister Shehbaz Sharif is expected to announce a reduction in electricity prices during a high-level meeting on the power sector scheduled for tomorrow. According to Express News, the prime minister will chair the meeting, which will also be attended by key federal ministers. During the session, PM Shehbaz is expected to address the participants and announce the much-anticipated Rs 8 per unit reduction in electricity prices. The meeting is set to take place at 2:00 PM tomorrow. The tariff adjustment results from multiple measures, including the cancellation of agreements with six Independent Power Producers (IPPs), revising contracts with 16 IPPs under a "take-and-pay" model, shifting bagasse power plants' currency from the US dollar to Pakistani rupees, and lowering the return on equity (ROE) for government power plants (GPPs) to 13%, with the dollar rate fixed at Rs168. Officials noted that the tariff reduction calculations also account for the impact of lower oil prices in the global market since March 16, 2025. Maintaining current oil prices is expected to save approximately Rs168 billion, allowing a reduction of Rs1.30 per unit in power tariffs. The IMF has agreed to approve this relief, acknowledging the government's decision to freeze oil prices for three months. The government aims to make Rs6 per unit of the Rs8 reduction a permanent adjustment. Additionally, sources indicate that the Rs35 PTV fee included in electricity bills may be removed starting in July 2025.
Express Tribune
24-03-2025
- Business
- Express Tribune
Sugar price drops by Rs9 per kg
A good news for sweet tooths yearning for siwayyan, sheer khurma and mithais is that the price of sugar dropped by Rs9 per kilogram in a single day. Traders attributed the slump in white sugar rates to the government's crackdown against hoarders during the holy month of Ramazan. According to Karachi Wholesale Grocers Association Chairman Abdul Rauf Ibrahim, the price of sugar in the wholesale market Jodia Bazaar decreased from Rs168 per kilogram to Rs159 per kilogram. The ex-mill price of sugar also decreased to Rs156 per kilogram due to the crackdown. In the retail market, sugar is being sold for Rs175-180 per kilogram. Ibrahim further stated that the country has a sufficient stock of sugar, and no sugar exports are being made in order to meet local demand. He added that the government has fixed the sugar rate, putting an end to hoarding. It is expected that sugar prices will decrease further in the coming days.
Express Tribune
20-03-2025
- Business
- Express Tribune
Power tariff likelyto go down by Rs8
Prime Minister Shehbaz Sharif was expected to announce a reduction of Rs8 per unit in the electricity tariff on March 23 in the following the approval of the government's proposals by the International Monetary Fund (IMF), sources said on Wednesday. According to the sources, officials of the Ministry of Finance and the Power Division were considering various options to reduce electricity prices by Rs2 per unit, while the government aimed at implementing a reduction of Rs6 out as a permanent adjustment. "The proposal will be finalised before March 23," a sources said, adding that the reduced tariff would implement from April 1. "Hence, electricity consumers will lower bills from May," the source added. "Out of the total reduction of Rs8 per unit, Rs 4.73 per unit will be a permanent adjustment." The change in tariff came after cancellation of contracts with six Independent Power Producers (IPPs), and the reviewing power purchase agreements with 16 IPPs and converting them to a 'take-and-pay' model, according to the sources. Converting bagasse-based power plants from the US dollars to Pakistani rupee – in which the US dollar has been fixed at Rs168 – and the 13% reduction on return on equity (ROE) for the government power plants (GPPs) also contributed to the tariff reduction. Officials have said that now the tariff reduction will be calculated taking into account the impact of the prices of oil products, which came down in the international market from March 16, 2025. The estimated fiscal impact of maintaining current oil prices is about Rs168 billion.
Express Tribune
19-03-2025
- Business
- Express Tribune
PM likely to announce Rs8 per unit electricity price cut on March 23
Listen to article Government is set to announce an electricity tariff reduction of Rs8 per unit, with Prime Minister Shehbaz Sharif expected to make the official announcement on March 23 following approval from the International Monetary Fund (IMF), Express News reported. According to sources, the Ministry of Finance and Power Division are exploring additional measures to further reduce electricity rates by Rs2 per unit. A final decision will be made before the announcement. The reduction, effective from April 1, 2025, will reflect in consumer bills from May. Of the Rs8 per unit cut, Rs4.73 per unit will be a permanent adjustment. The tariff adjustment results from multiple measures, including the cancellation of agreements with six Independent Power Producers (IPPs), revising contracts with 16 IPPs under a "take-and-pay" model, shifting bagasse power plants' currency from the US dollar to Pakistani rupees, and lowering the return on equity (ROE) for government power plants (GPPs) to 13%, with the dollar rate fixed at Rs168. Officials noted that the tariff reduction calculations also account for the impact of lower oil prices in the global market since March 16, 2025. Maintaining current oil prices is expected to save approximately Rs168 billion, allowing a reduction of Rs1.30 per unit in power tariffs. The IMF has agreed to approve this relief, acknowledging the government's decision to freeze oil prices for three months. If international oil prices drop further, the financial impact could reach Rs250 billion. However, the Rs1.30 per unit relief will only be available for one month. The government aims to make Rs6 per unit of the Rs8 reduction a permanent adjustment. Additionally, sources indicate that the Rs35 PTV fee included in electricity bills may be removed starting in July 2025. For the fiscal year 2026 budget, the government plans to allocate funds to sustain PTV operations without relying on electricity bill collections.
