Headlines

Excessive vitality costs burn metal trade

Published

2 months ago

September 25, 2023

ISLAMABAD: As costs of electrical energy rise for industrial shoppers together with home shoppers, massive industries are beginning to really feel the warmth. The nation’s huge metal trade is considered one of many dealing with the warmth.

Early on Monday a consultant affiliation of the metal sector issued a dire warning concerning an imminent surge in metal rebar costs pushed by hovering vitality prices. The rise in worth might be a significant blow to the nation’s building trade and negatively have an effect on manufacturing unit employees, labourers, and trigger the lack of jobs.

In accordance a letter of Pakistan Affiliation of Giant Metal Producers (PALSP) to involved ministries, the metal sector, a cornerstone of Pakistan’s financial infrastructure, closely depends on electrical energy as a major enter, with energy prices accounting for over 50% of manufacturing bills. Escalating electrical energy costs have already compelled a number of metal items to shut their operations, leaving the remaining ones working at a fraction of their capability. PALSP has repeatedly known as on the federal government to supply the metal trade with electrical energy at lowered charges, selling most capability utilization as a substitute of incurring funds to impartial energy producers (IPPs) for unused electrical energy.

The scale of the pie

The scale of the metal trade in Pakistan has seen important progress over time. As of 2019, the metal trade in Pakistan consists of roughly 600 smaller and bigger mills with a manufacturing capability of three.3 million tons. This manufacturing capability accounts for 0.18 % of the world metal manufacturing. Moreover, Pakistan’s metal trade has 20 main gamers within the organized sector, akin to Amreli, Agha, Mughal, Frontier Foundry Metal, Razaque, Bilal, and Aitamad Steels, which collectively make up 80 % of the2 whole market share. These entities generated a mixed income of PKR 150 billion in FY 2020.

It’s price noting that whereas the trade has made important progress, there are nonetheless challenges and points it faces, together with underutilization of capability, rising prices of utilities, vitality shortages, monetary difficulties, lack of uncooked supplies, and outdated crops.

Electrical energy woes

Regardless of the trade’s many cries and complaints they’re solely the primary of many industries that may really feel the burden of rising energy prices.

Within the fiscal 12 months 2023-24, shoppers collectively face a staggering burden of Rs. 2.025 trillion in capability prices, exacerbated by the presence of idle energy crops. The trade grapples with unfavorable agreements with these energy crops, stipulating that capability prices should be paid even when authorities utilities fail to attract electrical energy from them. Including to this disaster, the Nationwide Electrical Energy Regulatory Authority (NEPRA) has lately accepted a Rs3.28 per unit improve in electrical energy charges for all shoppers nationwide.

Presently, the common base tariff stands at Rs. 29.78 per unit. When contemplating taxes and extra prices akin to gasoline changes, quarterly changes, and surcharges, the price of one unit of electrical energy soars to over Rs. 50. NEPRA beforehand decided a Energy Buy Value of Rs. 22.95 per unit, comprising Power Buy elements of Rs. 6.73 per unit (together with gasoline and variable operational & upkeep prices) and Capability Fees of Rs. 16.22 per unit (71%). This interprets right into a consumer-end tariff of Rs. 29.78 per unit, with Rs. 3.1 for Discos’ Margin, Rs. 17.01 for Capability Fees, and Rs. 7.62 for Power Fees, amongst others.

As a direct consequence of those mounting energy tariffs, metal costs are on the point of a staggering improve of over Rs. 10,000 per ton, warns Wajid Bukhari, Secretary Normal of PALSP. Presently, branded G-60 rebars are priced between 285,000 to 288,000 Rs. per ton. Nonetheless, impending vitality tariff hikes, together with gasoline and gasoline surcharges, will exert immense stress on prospects to simply accept larger costs.

PALSP reveals that on account of exorbitant vitality prices, many metal producers have been compelled to cut back their capacities or shut down their crops. This, in flip, has led to energy distribution corporations imposing exorbitant capability prices on shoppers.

Secretary Normal Wajid Bukhari emphasizes the gravity of the scenario, highlighting that petrol costs have surged to Rs. 331.38 per liter, electrical energy prices have risen to Rs. 50 per unit, and monetary prices have escalated to 23.5%.

Over the previous 12 months, from June 2022 to August 2023, metal bar costs have elevated by a modest 31%, whereas different worth determinants have witnessed staggering hikes of greater than 65%. Throughout the identical interval, electrical energy costs have surged by 73%, the Pakistani Rupee (PKR) has devalued by 70%, petrol costs have climbed 70%, and monetary prices have risen by 67%.

Comparatively, Pakistan’s vitality tariffs at the moment are among the many highest globally, putting a stranglehold on the home metal trade. Whereas Pakistan’s industrial electrical energy prices stand at 17 cents per kWh, China and Bangladesh provide charges at 8 cents per kWh, Vietnam at 7 cents per kWh, and Ukraine at 10.7 cents per kWh. This makes Pakistan’s electrical energy costs 58% larger than Vietnam’s, 53% larger than Bangladesh and China.

Wajid Bukhari urges the interim authorities to acknowledge the financial instability and the continuing downturn in industries, companies, commerce, and exports. Instant pro-business measures are crucial to avert an entire collapse of the trade and the broader financial system.

Headlines

Pakistan’s exports to regional nations soar 14% in July-October

Published

8 mins ago

November 28, 2023

Pakistaneo.com

Regional exports from Pakistan skilled a year-on-year development of 14.3 % within the first 4 months of the present fiscal 12 months, primarily pushed by elevated shipments to China.

In accordance with knowledge launched by the State Financial institution of Pakistan (SBP) on Monday, exports to 9 regional nations, together with Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives, rose from $1.263 billion to $1.443 billion in July-October.

Exports to China elevated by 40.36 % to $952.22. China emerged because the dominant recipient of Pakistan’s regional exports, accounting for almost 61% of the entire. million in the course of the first 4 months of FY24, in comparison with the corresponding interval final 12 months. This rebound follows a decline of 27.3 % in exports to China in FY23, marking the primary lower within the post-Covid interval.

Exports to Afghanistan, which was traditionally a major export vacation spot for Pakistan, grew by 2.64 % to $128.53 million in July-October FY24. Nonetheless, it’s value noting that the export figures don’t embody proceeds from transactions by land routes.

Notably, no official exports to Iran have been recorded within the first 4 months of the present fiscal 12 months, with a lot of the commerce with Tehran occurring by casual channels in Balochistan’s border areas.

In the meantime, exports to India declined by 37 % to $0.069 million, and exports to Bangladesh decreased by 34.74 % to $192.19 million in the identical interval. Sri Lanka noticed a modest improve of two.68 % in exports, reaching $114.47 million in 4MFY24.

In distinction, exports to Nepal elevated by 11.76 % to $1.14 million, and shipments to the Maldives rose by 17.49 % to $3.09 million. Nonetheless, no exports to Bhutan have been recorded within the first 4 months of FY24.

The general optimistic pattern in regional exports displays a noteworthy shift from the 21.1 % decline noticed in FY23.

Headlines

UAE pledges 25 billion {dollars} funding in Pakistan

Published

1 hour ago

November 28, 2023

Pakistaneo.com

ISLAMABAD: Pakistan and the United Arab Emirates (UAE) signed a number of Memorandums of Understanding (MoUs) value multi-billion {dollars} in a variety of areas on Monday to spice up financial and strategic cooperation between the 2 nations, caretaker Prime Minister Anwaar-ul-Haq Kakar mentioned.

The prime minister, who’s on a two-day go to to the UAE, mentioned with the signing of the MoUs, the bilateral financial and strategic relations had entered into a brand new period of bilateral cooperation.

Prime Minister Anwaar-ul-Haq Kakar held a bilateral assembly with His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates IN ABU DHABI. Chief of Military Workers Normal Syed Asim Munir, NI (M) was additionally current on the event.

The leaders underlined that Pakistan and the UAE have historic and deep-rooted fraternal ties which have stood the take a look at of time. They reaffirmed the resolve to additional strengthen bilateral strategic cooperation and dialogue between Pakistan and the United Arab Emirates. Prime Minister Kakar expressed profound gratitude for the UAE’s agency help for Pakistan within the financial and monetary area. The UAE is residence to 1.8 million Pakistanis, contributing to the progress, prosperity, and financial growth of the 2 brotherly nations.

In the course of the assembly, regional and world developments within the area have been mentioned with specific reference to the escalating hostilities in occupied Palestine. The Prime Minister expressed concern concerning the human price of the dire scenario in Gaza and reaffirmed Pakistan’s help for a long-lasting resolution to the Palestinian query anchored in worldwide legislation and in keeping with related United Nations and OIC resolutions.

The Prime Minister reiterated Pakistan’s full help to the UAE’s Presidency for COP 28 and underlined the significance of COP 28 as a chance for significant progress in direction of efficient and result-oriented world actions on key areas to mitigate local weather impression together with the institution of the Loss and Injury fund.

The 2 leaders witnessed the signing of MoUs between Pakistan and the UAE pertaining to funding cooperation within the sectors of Vitality, Port Operations Tasks, Waste Water Therapy, Meals Safety, Logistics Sector, Mining, Aviation and Banking & Monetary Providers. These MoUs will unlock multi-billion {dollars} of funding from the United Arab Emirates into Pakistan and can assist realise numerous initiatives envisioned beneath SIFC.

Prime Minister of Pakistan termed it as a historic occasion that may take financial cooperation between each brotherly nations to new heights and open doorways of financial prosperity and socio-economic growth of Pakistan. He highlighted the success of SIFC in making a enterprise and funding pleasant surroundings by means of one window operation and quick monitoring the initiatives.

Congratulating the folks of Pakistan and the UAE, he mentioned the inspiration of friendship with Pakistan which was laid by Sheikh Zayed bin Sultan Al Nahyan within the Nineteen Seventies, had been taken ahead by his son Sheikh Mohammed bin Zayed Al Nahyan to a brand new period.

Military Chief Normal Asim Munir and the federal ministers have been current on the event whereas on the opposite facet, all of the vital ministers of UAE have been additionally current, based on state-run APP.

PM Kakar expressed the hope that the MoUs that have been signed by the 2 nations would flip into tangible initiatives very quickly.

Bilateral assembly

In the course of the go to, PM Kakar held a bilateral assembly with UAE President Mohamed bin Zayed in Abu Dhabi and mentioned world and bilateral issues

Normal Munir was additionally current on the event, based on an announcement issued by the PM’s Workplace.

The leaders underlined that Pakistan and the UAE have historic and deep-rooted fraternal ties which have stood the take a look at of time.

They reaffirmed the resolve to additional strengthen bilateral strategic cooperation and dialogue between Pakistan and the UAE.

Prime Minister Kakar expressed profound gratitude for the UAE’s agency help to Pakistan within the financial and monetary area.

Pakistan and United Arab Emirates (UAE) signed a number of multi-billion {dollars} Memorandum of Understandings (MoUs) in a variety of areas right here on Monday to spice up financial and strategic cooperation between the 2 nations, Caretaker Prime Minister Anwaar-ul-Haq Kakar mentioned in a video message.

Congratulating the folks of Pakistan and the UAE, he mentioned basis of friendship with Pakistan that was laid by Sheikh Zayed bin Sultan Al Nahyan within the Nineteen Seventies, had been taken ahead by his son Sheikh Mohammed bin Zayed Al Nahyan to a brand new period.

Pakistan’s Military Chief Normal Asim Munir and the federal ministers have been current on the event whereas on the opposite facet, all of the vital ministers of UAE have been additionally current.

He expressed the hope that the MoUs that have been signed by the 2 nations would flip into tangible initiatives very quickly.

The UAE is residence to 1.8 million Pakistanis, contributing to the progress, prosperity and financial growth of the 2 brotherly nations.

In the course of the assembly, regional and world developments have been additionally mentioned with specific reference to the deteriorating human rights and humanitarian scenario in occupied Palestine.

The prime minister expressed Pakistan’s help for a simply and sturdy resolution to the Palestinian query anchored in worldwide legislation and in keeping with related United Nations and OIC resolutions.

He additionally reiterated Pakistan’s full help of the UAE’s Presidency for COP 28, underlining its significance as a chance for significant progress in direction of efficient and result-oriented world actions in key areas to mitigate local weather impression together with the institution of the Loss and Injury Fund.

The 2 leaders witnessed the signing of MoUs between Pakistan and the UAE pertaining to funding cooperation within the sectors of vitality, port operations initiatives, wastewater therapy, meals safety, logistics, minerals, and banking and monetary providers.

The official assertion mentioned these MoUs will unlock multi-billion {dollars} of funding from UAE into Pakistan and can assist realise numerous initiatives envisioned beneath the Particular Funding Facilitation Council (SIFC).

Kuwait go to

Following his go to to the UAE, PM Kakar will embark on a bilateral go to to Kuwait on November 28-29, the International Workplace mentioned in an announcement.

In the course of the go to, the prime minister will meet Sheikh Meshal Al Jaber Al Sabah, Crown Prince of State of Kuwait, and Sheikh Ahmed Nawaf Al Ahmed AL Sabah, Prime Minister of the State of Kuwait.

The go to will embody the signing of varied MoUs within the fields of manpower, data know-how, mineral exploration and meals safety, vitality, and defence.

Pakistan and Kuwait get pleasure from deep-rooted historic ties spanning over six a long time. The 12 months 2023 marks the sixtieth anniversary of the institution of diplomatic relations, as per the assertion.

Headlines

Pakistan’s exports to regional international locations bounce 14% in July-October of FY24

Published

2 hours ago

November 28, 2023

Pakistaneo.com

Regional exports from Pakistan skilled a year-on-year progress of 14.3 p.c within the first 4 months of the present fiscal yr, primarily pushed by elevated shipments to China.

In accordance with knowledge launched by the State Financial institution of Pakistan (SBP) on Monday, exports to 9 regional international locations, together with Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan, and the Maldives, rose from $1.263 billion to $1.443 billion in July-October.

Exports to China elevated by 40.36 p.c to $952.22. China emerged because the dominant recipient of Pakistan’s regional exports, accounting for almost 61% of the entire. million in the course of the first 4 months of FY24, in comparison with the corresponding interval final yr. This rebound follows a decline of 27.3 p.c in exports to China in FY23, marking the primary lower within the post-Covid interval.

Exports to Afghanistan, which was traditionally a major export vacation spot for Pakistan, grew by 2.64 p.c to $128.53 million in July-October FY24. Nevertheless, it’s price noting that the export figures don’t embody proceeds from transactions by way of land routes.

Notably, no official exports to Iran had been recorded within the first 4 months of the present fiscal yr, with a lot of the commerce with Tehran occurring by way of casual channels in Balochistan’s border areas.

In the meantime, exports to India declined by 37 p.c to $0.069 million, and exports to Bangladesh decreased by 34.74 p.c to $192.19 million in the identical interval. Sri Lanka noticed a modest improve of two.68 p.c in exports, reaching $114.47 million in 4MFY24.

In distinction, exports to Nepal elevated by 11.76 p.c to $1.14 million, and shipments to the Maldives rose by 17.49 p.c to $3.09 million. Nevertheless, no exports to Bhutan had been recorded within the first 4 months of FY24.

The general constructive pattern in regional exports displays a noteworthy shift from the 21.1 p.c decline noticed in FY23.