Headlines

Workers of WAPDA, DISCOs and others to proceed getting free electrical energy

Published

3 months ago

September 21, 2023

ISLAMABAD: The caretaker Prime Minister Anwar ul Haq Kakar has to date kept away from ending roughly Rs 20 billion price of free items of electrical energy that are at present admissible to the workers of WAPDA, and ex-WAPDA corporations (DISCOs, GENCOs, NTDC, PITC).

The injury

So, how many individuals in Pakistan profit from free electrical energy? The reply will not be easy. Attributable to a scarcity of transparency and knowledge, it’s troublesome to estimate the precise value of free electrical energy being offered to authorities officers, energy sector staff, the judiciary or the navy.

The Energy Division estimates that 15,971 staff from BPS 17-21 devour 7 million items of free electrical energy per thirty days, and 173,200 staff from BPS 1-16 devour 330 million items of free electrical energy per thirty days. Sadly they don’t present a extra granular look into the matter.

Based on the Nationwide Electrical Energy Regulatory Authority’s (NEPRA) State of Business Report for 2022, serving and retired staff of energy distribution corporations (DISCOs), era corporations, the Nationwide Transmission & Despatch Firm (NTDC), and the Water and Energy Improvement Authority (WAPDA) are entitled to free electrical energy items.

The quantity of free electrical energy offered amounted to Rs 6.4 billion in fiscal yr 2022 (FY). This determine, nonetheless, excludes the electrical energy offered to WAPDA staff. How a lot do they devour? Nobody is aware of. NEPRA is but to conduct that train.

The report additionally reveals that electrical energy customers are paying for the pension advantages of retired staff of those energy corporations. The report elucidates on the whole pension advantages, together with free electrical energy, of six DISCOs situated in Gujranwala, Quetta, Hyderabad, Sukkur, Multan, and Peshawar.

Throughout these six DISCOs, the advantages by way of simply electrical energy items given to retired staff stand at a median of Rs 664 million per yr from 2017 to 2025.

Why aren’t they ending free items?

Based on sources, the caretaker premier, throughout the course of a federal cupboard assembly, stopped the authorities involved from terminating the free electrical energy facility of the federal government officers, ostensibly owing to concern of protest by the federal government staff. They stated that the PM believes that such a step will doubtless open a brand new window of agitation and litigation. They stated the PM has directed the Minister for Energy, Minister for Commerce and Minister of Finance to deliberate on the ‘Monetization of Free Electrical energy Models Admissible to Workers of WAPDA (Water & Energy Improvement Authority), and ex-WAPDA corporations (Energy Distribution Corporations (DISCOs), Energy Technology Corporations ( GENCOs), Nationwide Transmission and Despatch Firm (NTDC), Energy Data Expertise Firm (PITC)’ and provides suggestions on this regard. Additionally, the caretaker PM thinks that elements like energy theft, buy of capability funds to IPPs, insufficient inter-Ministerial coordination, round debt, and many others. had been all answerable for the rise in electrical energy payments, stated sources well-aware of the event relating to the difficulty of Monetization of Free Electrical energy Models Admissible to Workers of WAPDA and ex-WAPDA corporations (DISCOs, GENCOs, NTDC, PITC).

The sources added that the federal cupboard had thought-about the abstract titled ‘ Monetization of Free Electrical energy Models Admissible to Workers of WAPDA, and ex-WAPDA corporations (DISCOs, GENCOs, NTDC, PITC), dated twenty sixth August, 2023, submitted by the ability division , and directed the Minister for Energy, Minister for Commerce and Minister of Finance to deliberate on the matter and recommend the best way ahead.

As per sources, the federal cupboard members on twenty sixth August, 2023 felt that provision of this facility of free electrical energy items to anybody was unfair, particularly attributable to monetary crunch the nation faces. It was famous with concern that even retired staff had been getting this prerequisite. Two potentialities had been mentioned. First, that withdrawing a prerequisite which was supplied at first of employment would result in prolonged litigation, due to this fact, changing it with monetization was the suitable technique to deal with it. Second any compensation, being unfair and iniquitous.

Throughout the course of this federal cupboard assembly, the Minister for Legislation acknowledged that the topic privilege of free electrical energy was offered as a part of the contract to the workers of the ability sector. Subsequently, subsequent adjustments to phrases and circumstances of service, withdrawal with none alternate compensation, is almost definitely to lead to litigation.

It is usually learnt from sources that the ability division additionally shared feedback of the cupboard division, NEPRA, Finance Division, and Ministry of Water Assets/WAPDA earlier than the cupboard assembly held on 26th August, 2023,.

NEPRA was of the view that utility allowance could also be given to the officers, as a substitute of free items/monetization.

Ministry of Water Assets/WAPDA acknowledged that proposed preparations would lead to no financial savings.

Finance Division really useful that free electrical energy is probably not granted and discontinued.

Energy division knowledgeable that out of whole 189,000 staff availing free items of electrical energy, 14000 are officers who will likely be impacted in first part of monetization.

It could be talked about that the above monetization doesn’t embody gross sales tax @ 18% and different duties.

The cupboard members additional inquired if any such prerequisite was being offered to some other departments or authorities. The Secretary Energy replied that excluding the ability sector staff, who weren’t even billed attributable to this facility, all different authorities staff and officers had been being billed for cost of electrical energy.

Members acknowledged that even in these circumstances, the people should not paying as a substitute the group are paying for it, largely from authorities’s budgetary allocations. Sone members desired that this facility ought to be withdrawn from non-officer cadres additionally.

The cupboard famous that since Pakistan was beneath an IMF Programme, which didn’t assist any subsidy, prior session with the finance division close to IMF conditionalities was vital earlier than any compensation bundle/reduction was thought-about.

Headlines

Germany’s KfW improvement Financial institution to put money into Pakistan’s energy, well being sectors

Published

5 hours ago

December 4, 2023

Pakistaneo.com

ISLAMABAD: The Ministry of Financial Affairs and KfW, the German authorities’s improvement financial institution, solidified their partnership on Monday with the signing of agreements geared toward enhancing Pakistan’s energy transmission sector and supporting the well being sector, particularly in flood-affected areas.

As per particulars in a ceremony held in Islamabad on Sunday, Mr. Sebastian Jacobi, Nation Director of KfW, and Dr. Kazim Niaz, Secretary of the Ministry of Financial Affairs, inked agreements signifying Germany’s dedication to furthering Pakistan’s improvement objectives. Managing Director of NTDC, Engr. Dr. Rana Abdul Jabbar Khan, was additionally current.

Underneath the “Promotion of Renewable Energies and Power Effectivity” program, KfW, representing the German authorities, will present a further grant of Euro 2.5 million to the Nationwide Transmission and Despatch Firm (NTDC). This funding will help NTDC in guaranteeing the efficient operation and upkeep of installations, incorporating strong environmental and social administration techniques. The initiative goals to boost the combination of needs-based renewable vitality into the transmission system, contributing to sustainable financial development and local weather safety.

In one other vital transfer, KfW will allocate a further Euro 1.5 million to the “Self-Employment of Ladies within the Non-public Well being Sector” program. This initiative goals to empower ladies economically by establishing 400 clinics in Punjab and Khyber Pakhtunkhwa, creating income-generating alternatives. The help is designed to foster inclusive and sustainable financial development whereas concurrently bettering reproductive well being companies in rural areas.

Expressing gratitude, Mr. Kazim Niaz, Secretary of the Ministry of Financial Affairs, acknowledged the German Authorities’s steadfast help and counseled KfW for its pivotal function in fostering financial development and sustainable improvement in Pakistan. In response, Mr. Sebastian Jacobi emphasised that KfW’s funding within the vitality and governance sectors is not going to solely drive sectoral enhancements but additionally contribute to the socio-economic uplift of beneficiaries by means of job creation and infrastructure improvement.

Highlighting the longstanding financial cooperation between Germany and Pakistan, courting again over 60 years, Mr. Jacobi famous that Germany has constantly supported Pakistan in infrastructure improvement and bettering social situations.

Headlines

Pak Suzuki’s main shareholder presents to purchase out 26.91% minority shares

Published

9 hours ago

December 4, 2023

Pakistaneo.com

The bulk shareholder of Pak Suzuki Motor Firm Restricted (PSMC), Suzuki Motor Company (SMC), has proposed to amass the remaining 26.91% shares of the corporate from the minority shareholders for Rs406 per share.

This provide is a part of SMC’s plan to delist PSMC from the Pakistan Inventory Alternate (PSX) and make it a wholly-owned subsidiary.

In accordance with a discover issued by PSMC to the PSX on Monday, SMC has submitted an utility to the Securities and Alternate Fee of Pakistan (SECP) for the approval of the voluntary delisting of PSMC. The discover acknowledged that SMC intends to buy the minority shares by means of a young provide below the Corporations Act 2017 and the PSX Rules.

“Suzuki Motor Firm (SMC), the bulk shareholder proposes to buy 22,145,760 strange shares (26.91%) of the paid-up share capital of the corporate (PSMC) held by the minority shareholders of the corporate at a minimal buy value of Rs406 per share,” learn the discover.

PSMC mentioned it has appointed Arif Habib Restricted as the acquisition agent.

The discover additional acknowledged that the provide value of Rs406 per share represents a premium of 37.5% over the closing value of Rs295.36 per share on November 30, 2023, the final buying and selling day earlier than the announcement of the provide. The provide value additionally displays a premium of 38.8% over the common closing value of Rs292.54 per share for the final six months.

The discover added that the provide is topic to the approval of the SECP, the PSX, and the acceptance of no less than 90% of the minority shareholders. The discover additionally talked about that the Board of Administrators of PSMC has resolved to delist the corporate from the PSX on October 19, 2023.

Earlier on October 12, PSMC introduced that it could consider the proposal of its majority shareholder to purchase all of the remaining shares of the corporate and take it off the PSX. Every week later, on October 19, PSMC’s BoD agreed to just accept the provide and permitted the delisting of the corporate from the PSX.

Pak Suzuki Motor Firm is the one among three huge car producers in Pakistan, with a market share of 42.6% as of September 2023. The corporate produces and sells varied fashions of Suzuki automobiles, bikes, and industrial automobiles.

SMC is a Japanese multinational company that owns 73.09% of PSMC’s shares. SMC has cited varied causes for its choice to delist PSMC, such because the difficult enterprise atmosphere, the regulatory uncertainty, the low liquidity, and the excessive value of itemizing.

Minority shareholders of the PSMC have suffered losses and missed dividends for a number of years and the corporate incurred losses in 2019, 2020, and 2022, with ongoing losses recorded as much as the third quarter of the present monetary yr (2023).

Headlines

Matco Meals launches new corn sugar plant in Karachi

Published

10 hours ago

December 4, 2023

Pakistaneo.com

The corporate processes and exports rice, rice protein, rice glucose, pink salt, condiments and spices, dessert mixes and so forth and its new plant has a capability to supply 4,000 metric tons corn sugar per 12 months.

Matco Meals Restricted, one of many largest rice exporters in Pakistan, has introduced the beginning of economic operations of its new plant that produces dextrose monohydrate, a type of corn sugar used within the meals and beverage business.

The plant is situated on company-owned land at Tremendous Freeway Industrial Space, Karachi, and has a capability of 4,000 metric tons per 12 months.

The corporate mentioned in a submitting to the Pakistan Inventory Change (PSX) on Monday that the plant was accomplished in 14 months and underwent intensive testing and inspection earlier than commissioning. The undertaking has created new jobs and financial alternatives for the nation, and also will earn very important overseas change by way of exports, the corporate mentioned.

Dextrose monohydrate is a pure monosaccharide and carbohydrate that acts as a sweetener, thickener, and bulking agent in varied merchandise. Matco Meals is principally engaged within the processing and export of rice, rice protein, rice glucose, pink salt, condiments and spices, dessert mixes and so forth. It has 5 processing crops and exports its merchandise to over 65 nations underneath the model title “Falak”.

The corporate mentioned it’s dedicated to diversifying the commercial base and offering worth addition for its stakeholders and Pakistan’s financial system. It’s among the many high 100 exporters from the nation and a devoted accomplice of Pakistan’s industrial imaginative and prescient.