Day: February 2, 2022

K-Electric is all set to lower electricity tariff by Rs. 2.59 per unit under fuel cost adjustment for December 2021.

A hearing was conducted in the National Electric Power Regulatory Authority (NEPRA) on the request of K-Electric to lower electricity prices for consumers in Karachi. Hearing on the petition was presided over by Chairman NEPRA, Tauseef H. Farooqi.

According to details, the power utility company had asked the power regulator to lower electricity prices by Rs. 1.80 per unit under fuel adjustment charges for December 2021.

The decision, if approved by NEPRA, after analyzing the data shared by the power utility, would give an overall relief of Rs. 2.10 billion to the power consumers in Karachi.

K-Electric, in its briefing to the hearing, informed that the electricity consumption was lower in December as compared to the previous months. NEPRA officials briefed that the gas pressure reduction and merit order violations also took place, which caused a loss of Rs. 108 million.

NEPRA officials said that K-Electric’s request for an additional Rs. 0.78 per unit would be added to the fuel charges adjustment (FCA) request for December. NEPRA officials informed the hearing that a total of Rs. 2.59 per unit would be ascertained as FCA for K-Electric instead of the requested Rs. 1.79 per unit.

The Chairman NEPRA, after the detailed briefing, remarked that at least Karachiites will be happy that the regulator also gives relief, and February bills would be much lesser for the consumers in Karachi.

This will be good news for the people of Karachi if FCA is low, said Chairman NEPRA

It is pertinent to mention here that for November 2021, the NEPRA reduced the power tariff for K-Electric consumers up to Rs. 0.76 per unit under FCA.

However, the reduction will not apply to lifeline consumers of K-Electric. The authority reserved the decision and after reviewing the statistics will issue the notification.

Source: Pro Pakistani

Spokesperson Finance Ministry, Muzammil Aslam has said that the inflation in the country is mainly because of international commodity prices, and soon the Pakistani market will be stable in terms of prices.

Addressing a news conference in Islamabad on Wednesday, Muzammil Aslam said that global inflation was increased due to COVID-19, which also affected Pakistan. He said that Pakistan’s economy was improving, adding that the exports increased by 18% while the imports decreased by 23% over the last year.

To a question, he said that no doubt Pakistan was far better than India in terms of economy, and the country was now on the path to prosperity.

He noted that a decrease in imports with an increase in exports would reduce the trade deficit. He said that Pakistan was facing difficulties importing goods, as there was inflation in the world market, leading to an increase in prices in the commodities brought into Pakistan.

Muzammil Aslam said that egg prices remained stable this year as compared to the last year. Pakistan’s foreign exchange reserves, he added, were high during the COVID pandemic and Pakistan’s currency was showing continuity.

He underlined that sugar was abundant in the country and prices were stable. He said that the price of sugar was Rs. 80 to 83 per kilogram.

He maintained that Pakistan’s deficit had come down from $5 billion to $3 billion. He observed that COVID-19 devalued the currencies of many countries, and the depreciation of the Pakistani Rupee against the dollar had led to inflation in the country. This was the main reason why prices were not stabilizing in the country, he explained.

He said that sugar had been imported into the country which is now abundant and we will not have to import it. Similarly, we have not had to import wheat. Muzammil Aslam said that Pakistan imports 80% of its cooking oil which has affected the common man.

He reiterated that the recent 13 percent inflation figures in the country were not high and there had been no increase in inflation as compared to December 2021. He emphasized that the price of flour was stable as compared to the last year.

He hoped that Pakistan’s economy would grow strong and stable. He asserted that despite multiple challenges, particularly COVID-19, the country’s economy performed well during 2021 and was moving in the right direction with the support of the government’s prudent policies.

He further said that the country’s exports were gradually increasing and likely to touch $30 billion by the end of this fiscal year, while inflows of home remittances would be about $32 billion.

Pakistan has also revised up its economic growth rate for 2020-21 to 5.37 percent from 3.9 percent which is another historic achievement, he said, adding that the policies of the government bearing fruits and taking the economy toward sustainable development.

Source: Pro Pakistani

The receivables of the Pakistan State Oil (PSO) have touched the highest level of Rs. 436 billion from its consumers belonging to various public and private entities, official sources told ProPakistani.

The figures show that the biggest energy importer giant is facing a serious financial crunch.

The PSO receivables from the Sui Northern Gas Supply Company (SNGPL) have surged to Rs. 230.1 billion, which is a matter of concern for the company.

A PSO official, when contacted, said the huge receivables from SNGPL were not a good omen, as they were hurting the company’s economic health. He added that the outstanding amount of SNGPL was a growing area of concern for PSO. The management is rigorously following up with the authorities concerned for an early settlement of outstanding receivables, he informed.

The power-producing organizations of the country are also unable to pay the outstanding amount of PSO due to low recoveries of bills. Sources said that the receivables of PSO from the country’s power sector had mounted to Rs. 167 billion.

On the other hand, the overall stocks of the circular debt touched heights and climbed to Rs 2,419 billion on account of flows and stocks till the end of October 2021 mainly due to technical losses, power theft and low bill recoveries. Around Rs. 38 billion is being added to the total stock of circular debt monthly basis, according to very recent estimates.

Pakistan International Airlines (PIA) has to make payments for fueling its airplanes as an advance to PSO. The sources told that the receivables from PIA have surged to Rs. 22.2 billion.

According to sources, the amount of price differential claims of the company had climbed to Rs. 9.7 billion. The amount is receivables from the federal government. The company’s claims of exchange rate differential have increased to Rs. 6.9 billion.

Source: Pro Pakistani