Latest news with #Rs32.73
Express Tribune
7 days ago
- Business
- Express Tribune
PSX kicks off FY26 with historic week
Listen to article The Pakistan Stock Exchange (PSX) opened the new fiscal year on a bullish note, with the benchmark KSE-100 Index surging to an all-time high of 131,949.06 points during the week ended July 4, 2025. The index gained 7,570 points or 6.1% week-on-week, driven by improving macroeconomic indicators, foreign inflows, and strong investor sentiment. The rally builds on momentum from the previous fiscal year (FY25), which closed with the PSX ranking the best-performing regional bourse, delivering a 60% annual return. Easing inflation, a reduction in electricity tariffs, and renewed interest from both local and foreign investors helped maintain the upward trajectory. Investor confidence was further boosted after Bloomberg reported that Pakistan led all emerging markets in reducing default risk. The country's probability of default dropped sharply from 59% to 47%, the biggest decline globally. Meanwhile, the number of billion-dollar listed firms on the PSX rose from six in December 2023 to 11 by July 2025. On Monday, the final trading day of FY25, the KSE-100 Index closed at a record 125,627 points, marking a 60% annual return. That day alone saw the index gain 1,248 points or 1%. The bullish momentum carried into FY26. On Tuesday, the market broke through the 126,000, 127,000, and 128,000 levels in a single session, closing at 128,199 with a gain of 2,572 points or 2.05%. On Wednesday, the index crossed the psychological barrier of 130,000 for the first time, closing at 130,344, up 2,145 points or 1.67%, amid growing optimism over improving fundamentals, a stable rupee, and increased foreign inflows. Thursday saw a "tug of war" between bulls and bears, with volatility marking the session. However, the bulls ultimately prevailed, and the index closed at 130,687, gaining 343 points or 0.26%. The week ended on Friday with another positive session. The KSE-100 climbed 1,262 points or 0.97% to close at 131,949, setting a new all-time high. According to Arif Habib Limited's (AHL) weekly report, the KSE-100 Index surged from 125,627.31 to 131,949.06 during the week, posting a 6.1% gain. The rally was broad-based, supported by improved macroeconomic indicators. Inflation for June 2025 eased to 3.2% from 3.5% in May, as reported by the Pakistan Bureau of Statistics (PBS). The National Electric Power Regulatory Authority (NEPRA) revised the electricity tariff downward to Rs31.59/kWh, from the earlier Rs32.73/kWhan average cut of Rs1.14 per unit. Meanwhile, the Oil and Gas Regulatory Authority (OGRA) announced a hike in gas prices across domestic and other consumer categories, effective July 1, 2025. In sector-specific developments, domestic cement sales declined by 2.4% year-on-year in FY25, falling to 38.6 million tonnes from 39.5 million tonnes in FY24. Foreign exchange reserves received a major boost as the State Bank of Pakistan (SBP) reported an increase of $3.66 billion to $12.73 billionthe second-largest weekly jump on record. On the regulatory front, the government introduced a National Electric Vehicle (NEV) levy, resulting in price increases across several car categories. JS Global's Syed Danyal Hussain noted that the KSE-100 index's strong FY25 close and continued FY26 momentum reflect improving sentiment. The index's 6% week-on-week increase was complemented by a 31% rise in average daily turnover (ADTO). Investor optimism was also driven by Pakistan securing $3.4 billion in rollover and refinancing from China, along with an additional $1.5 billion loan from Middle Eastern banks and multilateral institutions. Of this, $3.7 billion has already been reflected in reserves, pushing SBP's holdings to $12.7 billion. The SBP expects remaining inflows next week, which could push reserves to $14.51 billion. June 2025's CPI came in at 3.2% year-on-year, bringing the FY25 average to 4.5%, a dramatic drop from 23.4% in FY24.
Express Tribune
01-07-2025
- Business
- Express Tribune
Govt rules out power surcharge
Listen to article The Power Division said on Tuesday that there was no plan to impose a surcharge on electricity bills to bear the cost of commercial loans taken from banks to retire circular debt. An official of the Power Division revealed this during a public hearing conducted to consider a motion of the division seeking tariff reduction of up to Rs1.15 per unit due to rebasing. The division informed the hearing that average national tariff would be slashed from Rs32.73 per unit to Rs31.59 per unit – a decline of Rs1.14. Officials said that base tariff for all consumers, except for lifeline consumers, would go down by Rs1.15 per unit. Tanveer Bari, representing the Karachi Chamber of Commerce and Industry, raised the issue of a new power surcharge on electricity bills. He argued that the government was going to give a relief of Rs1.15 per unit but at the same time it was preparing to slap a surcharge of Rs3.23 per unit due to loans taken from banks. He said that the surcharge could go up in case of lower electricity consumption. Bari protested over giving only one day to review the motion and other people also approached Nepra, asking it to give at least seven days in that regard. He pleaded the regulator not to approve the petition, adding that the government had claimed a big relief following deals with the independent power producers but in reality it was a very thin relief. He also criticised the increasing fixed charges for industries and demanded the removal of a cap on solar net metering to boost industrial activities. Another intervener Amir Sheikh questioned about the relief being given to consumers. Some interveners pointed out that the industry was enjoying a relief of Rs6 per unit till June 30 but industrial rates would go up by Rs5 per unit after the rebasing of tariffs. DISCOs slammed for overbilling Nepra officials said that power distribution companies (DISCOs) were denying tariff relief to protected consumers by manipulating the reading of electricity meters. DISCOs increase the consumption of units to take consumers out of the 200-unit protected category to send high bills, they said, adding that they had received several complaints and were probing the matter. Rehan Javed, an intervener, said that the actual determined tariff was not taken into consideration in relation to K-Electric's (KE) uniform tariff. It was feared that Karachi consumers would have to pay a surcharge if the actual KE tariff was not taken into account during rebasing. He asked about tariff structure and called for engaging industries or industrial associations in tariff rebasing. He argued that B3 meter consumers were bearing losses; therefore a separate tariff should be set for them. Javed emphasised that the sanctioned load for industries should be enhanced to help increase Pakistan's exports. He also called for rectifying the anomaly in peak consumption hours for industries, adding that a new tariff design should be framed. The intervener asked who was paying grid maintenance charges and proposed fixed charges for solar net metering. Industrialist Arif Bilwani argued that the Power Division had filed a petition in anticipation of cabinet's approval. However, Power Division officials said that the cabinet had already given the go-ahead for tariff rebasing. He also raised the issue of cold storages, which had been delayed due to the Power Division's failure to come up with comments. Nepra asked why the division had not given its comments and raised the legal question whether the regulator could give its decision without comments from the Power Division. Officials of the division said that they were working on seeking approval of the cabinet regarding cold storages. Senior citizen Tariq Abdul Majeed highlighted the higher tariffs being paid by consumers using more than 200 units in a month. Responding to that, the Power Division officials clarified that the government was giving a subsidy to people consuming up to 200 units.
