Latest news with #Rs7.59
Express Tribune
05-04-2025
- Business
- Express Tribune
PSX leaps 984 points after Eid
Shares of 344 companies were traded. At the end of the day, 147 stocks closed higher, 173 declined and 24 remained unchanged. PHOTO: REUTERS Listen to article Pakistan Stock Exchange (PSX) rebounded strongly in the shortened two-day trading week following Eidul Fitr holidays, with the benchmark KSE-100 index hitting a historic intra-day high of 120,797 points before closing at 118,791, up 984 points, or 0.8% week-on-week (WoW). The rally was fueled by the prime minister's announcement of substantial electricity tariff cuts – Rs7.4/unit for residential consumers and Rs7.59/unit for industries – boosting investor confidence. The bullish activity came despite lingering concerns over a 29% US tariff on Pakistani exports. On the macro front, optimism grew following a sharp decline in inflation, with March Consumer Price Index (CPI) easing to 0.7% year-on-year (YoY), the lowest in nearly six decades, and a narrowing trade deficit to $2.1 billion. The State Bank's reserves showed resilience, rising $70 million to $10.7 billion. Foreign investors remained net buyers, injecting $7.38 million, mainly into banks, while local insurance firms and mutual funds booked profit. Average daily trading volumes jumped 54% WoW to 488 million shares, with traded value rose 30% to $113.6 million. On a day-on-day basis, following Eid holidays, the PSX began April on a cautious note amid concerns over the 29% US tariff on Pakistani exports. The KSE-100 index initially dipped to the intra-day low of 117,508, but rebounded sharply after the prime minister's anticipated power tariff reduction, sparking value buying. The index closed up 1,131 points at 118,938 on Thursday. On Friday, the benchmark index briefly touched the 120,000 mark in intra-day trading, before settling at 118,792, down 146 points. Arif Habib Limited (AHL), in its weekly report, wrote that the two-day trading week following Eid holidays commenced on a positive note, with the KSE-100 index reaching an all-time intra-day high of 120,797 points on Friday. The upward momentum was fueled by the prime minister's announcement of significant power tariff reductions of Rs7.4/unit for domestic consumers and Rs7.59/unit for industries. This positive development was overshadowed, to some extent, by concerns over the imposition of a 29% tariff on Pakistani exports by the US, it said. On the economic front, inflationary pressures continued to ease, with CPI for March 2025 dropping to 0.7% - the lowest in nearly six decades. Meanwhile, Pakistan's trade deficit showed signs of improvement, narrowing to $2.1 billion in March from $2.3 billion in the same month of last year, further supporting market sentiment. Sector-wise, positive contribution to the KSE-100 index came from banks (1,791 points), cement (86 points), fertiliser (49 points), tobacco (30 points), and real estate investment trust (19 points). Meanwhile, the sectors that contributed negatively were exploration & production (410 points), power (103 points), oil marketing companies (88 points), leather & tanneries (81 points), and cable & electrical goods (45 points), AHL said. Stock-wise, positive contributors were UBL (1,149 points), Meezan Bank (265 points), MCB Bank (123 points), HBL (105 points), and Bank AL Habib (51 points). Among individual stocks, negative contribution came from Hubco (128 points), OGDC (127 points), Pakistan Petroleum (122 points), and Pakistan Oilfileds (87 points). Foreigners' buying continued during the week, which came in at $7.38 million compared to net buying of $3.92 million last week. Major buying was witnessed in banks ($5.45 million). On the local front, selling was reported by insurance companies ($8.82 million) and mutual funds ($6.54 million). Among other major news, OGDC and Mari made new discoveries, the energy sector circular debt reached Rs4,700 billion, bank deposits decreased nearly 2% to Rs30 trillion in February, coal imports hit a three-year low and Lotte Chemical planned to suspend operations for inventory management, AHL added. Topline Securities' weekly review said that the KSE-100 index gained 0.84% WoW, which could be credited to the cut in electricity tariffs by the government to support residential consumers and industries. Apart from that, other factors providing stimulus to the market included the CPI for March that stood at 0.7%, the lowest monthly YoY reading in over three decades, and Pakistan's March trade deficit, which reached $2.12 billion, down 8% month-on-month, it said.
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Express Tribune
04-04-2025
- Business
- Express Tribune
Roadside food bazaars planned
The first 'Sahulat-on-the-go bazaars' will be established along roads in Punjab as Chief Minister Maryam Nawaz Sharif has approved the project in principle. Chairing a meeting in which a briefing was given about the project, she sought a plan for establishing the bazaars at 14 locations in Lahore under a pilot project. . The chief minister set a target of four months for the implementation of the pilot project. Under the plan, government land along the roads will be utlilised for establishing the Sahulat-on-the-go bazaars. As many as 816 stalls will be set up in Lahore under the pilot project. The participants of the meeting were informed that the bazaars would be established at Multan Road, Hanjarwal, Manga Mandi, Raiwind, G-1 Market, Faisal Town, Moon Market and Bedian Road. Millat Road, Gulshan Ravi, Shahdara, Shadman and Singh Pura are also included in the project. Essential edible items will be available for sale at uniform cottage-top shops in the bazaars along the roads. The authorities said arrangements would be made for maintaining a clean environment and security in the bazaars. It was agreed in the meeting that the project would later be launched in every tehsil of Punjab. Punjab Model Bazaar Management Company Chairman Muhammad Afzal Khokhar presented a report to the chief minister on the scheme. According to a statement, the CM expressed satisfaction over the setting up of model bazaars during Ramazan. Meanwhile, Chief Minister Maryam Nawaz paid tribute to Pakistan Muslim League-N (PML-N) President Nawaz Sharif, Prime Minister Shehbaz Sharif and his team for a reduction in the electricity tariff. She added, "History is witness to the fact that whenever Muhammad Nawaz Sharif came to power, he not only brought the country out of crises, but also provided real relief to people." She highlighted, "Reduction of Rs7.41 per unit for domestic consumers and Rs7.59 per unit for industries is a great economic facility for the people suffering from inflation." She underscored, "Reduction in electricity rates will also prove to be a milestone for the development of the country's economy and industries."
Express Tribune
03-04-2025
- Business
- Express Tribune
'Ensure tariff relief is sustained over time'
Listen to article Leading businessmen, while appreciating Prime Minister Shehbaz Sharif's announcement of a substantial reduction of Rs7.59 per unit in electricity tariffs for industrial consumers and Rs7.41 per unit for domestic consumers, have stated that it is a critical move that will ease financial pressure on both businesses and citizens, who have long struggled with exorbitant tariffs. In a joint statement, Businessmen Group Chairman Zubair Motiwala, Karachi Chamber of Commerce and Industry (KCCI) President Jawed Bilwani and other senior leaders emphasised that the relief package came at a time when it was needed the most. They called the initiative a "historic intervention" and a bold step towards providing relief to millions of households and thousands of businesses across the country. "This tariff reduction would have far-reaching positive effects, which will not only ease the financial burden on consumers but also revitalise the industrial sector, fostering economic growth, enhancing exports, and contributing to a more competitive business environment," they said. "It is an essential catalyst for the growth of local industries. Over the years, high energy costs have hindered industrial productivity, and this reduction will bring tangible benefits to manufacturing and exports, which are the key drivers of economy," Motiwala remarked. KCCI President Bilwani stressed the need to ensure that the tariff relief was sustained over time. "This announcement is a step in the right direction. However, it is essential for the government to continue working closely with the business community to monitor energy pricing and ensure long-term tariff stability for both industries and households," he said. Echoing similar views, Federal B Area Association of Trade and Industry President Shaikh Muhammad Tehseen termed the reduction in industrial electricity tariff a business-friendly step.
Arab News
03-04-2025
- Business
- Arab News
Pakistan announces Rs7.41 per unit cut in power tariff for domestic consumers
KARACHI: Prime Minister Shehbaz Sharif announced a significant reduction in electricity tariffs for both domestic and industrial consumers on Thursday, saying that his administration has slashed them by Rs7.41 per unit for domestic consumers and Rs7.59 for industrial ones. Pakistan produces expensive electricity due to a combination of factors including high reliance on imported fossil fuels, inefficient energy mix, substantial transmission and distribution losses and chronic issues like circular debt and regulatory inefficiencies. Pakistan has sought to ease fiscal pressure aggressively in recent months by undertaking energy reforms that reduce tariffs and slash capacity payments to independent power producers (IPPs). 'I am here to give you a good news regarding Pakistan's economy and how the promise made by PML-N leader [Nawaz Sharif] in the manifesto has been fulfilled,' Sharif said at a ceremony in Islamabad, announcing that the price of electricity has been slashed by the government by Rs7.41 per unit, bringing it down to Rs34 rupees per unit. In June 2024, the prime minister noted that the electricity price for industrial consumers stood at Rs58.50 per unit which was then lowered to Rs47.19. 'Today, I am announcing an additional reduction of seven rupees and 59 paisas for the industrial sector,' Sharif said to loud applause from the attendees. The Pakistani premier reflected on the economic challenges his government inherited, saying that the nation was in danger of being declared bankrupt and that the International Monetary Fund (IMF) was unwilling to cooperate with it at first. 'When we took power, there were discussions of bankruptcy, the IMF was not willing to listen, there was no money to run power plants and we were facing a very difficult situation to meet energy needs,' Sharif said. 'Meanwhile, those who had brought Pakistan to the brink of default were celebrating, thinking that nothing could save Pakistan from default,' he said, referring indirectly to former prime minister Imran Khan, his political rival. The Pakistani prime minister stressed that his government could not continue providing power subsidies until its External Fund Facility (EFF) loan program with the IMF ended. 'We will have to make decisions like privatization and right-sizing because subsidies cannot be provided while the IMF loan exists,' he said. 'Due to the IMF loan, the nation loses 800 billion rupees annually. I believe that all politicians and institutions must work together to save 800 billion rupees,' he added. Despite the challenges, Sharif expressed confidence in Pakistan's economic course, noting the recovery and reduced pressure on the country's fiscal situation. He noted that Pakistan's petroleum product prices are now among the lowest in the region. 'In the past year, the price of petrol has decreased by Rs38 per liter and even today, petroleum product prices in Pakistan are the lowest in the region,' the premier said. Sharif discussed the government's plans to increase revenues by 35 percent, acknowledging that this figure was lower than the IMF's original expectations but still a 'significant improvement' over Pakistan's past performance. 'We are going to increase revenues by 35 percent, which is less than what was agreed with the IMF but much more than in previous years,' he said. The prime minister also provided an update on Pakistan's circular debt, saying it stood at Rs2,393 billion. He said the government plans to eliminate it completely within the next five years. 'We are moving toward a path of progress,' Sharif emphasized. 'The journey is challenging but we have the strength and resolve to move forward without looking back.'
Express Tribune
03-04-2025
- Business
- Express Tribune
PM Shehbaz announces Rs6 per unit cut in electricity prices
Listen to article Prime Minister Shehbaz Sharif has announced a reduction of Rs7.59 per unit in electricity prices while addressing an event in islamabad to unveil the government's new electricity package, aimed at lowering costs for consumers. The decision on Thursday comes after approval from the International Monetary Fund (IMF) and is part of broader efforts to ease the financial burden of high electricity costs on the public. "The country cannot progress without a significant reduction in electricity prices, he said. "This is no ordinary feat," the premier remarked on the development while commending the efforts of his government. The Prime Minister also provided details on revised agreements with Independent Power Producers (IPPs) and highlighted other key reforms that, he said, had resulted in savings of Rs3,696 billion for the national exchequer. 'This amount was meant to be paid to the IPPs,' Shehbaz Sharif announced. Prime Minister Shehbaz Sharif also said said. "Arrangements have been made to address circular debt, with plans to eliminate it within five years, contingent on changes in behavior." The Rs7/59 per unit cut is a significant part of the government's plan to reduce power tariffs, with earlier proposals suggesting reductions ranging from Rs6 to Rs8 per unit. Giving details of the price cuts, Prime Minister Shehbaz explained that the rate per unit, which stood at Rs58.35 in June 2024, was reduced to Rs48.19, marking a decrease of Rs10.3 per unit. He hoped that the additional Rs7 per unit reduction announced today would benefit the people of Pakistan. He also highlighted the ongoing issue of electricity theft, estimating that the country loses approximately Rs600 billion annually due to this practice. The Prime Minister emphasized that the financial burden of these losses unfairly impacts vulnerable groups, such as the poor, widows, and orphans, and called for measures to eliminate electricity theft. Additionally, the Prime Minister proposed the creation of an open market in the electricity sector, aimed at fostering healthy competition and further lowering electricity rates. In his address, the Prime Minister emphasised the importance of these reforms in providing relief to the people and improving economic conditions. He assured that these measures were taken with the goal of easing the financial burden on consumers, particularly in the face of rising electricity costs. The announcement was made during a high-level meeting, where senior federal ministers and officials were present.
