Latest news with #Rs164
Express Tribune
14-07-2025
- Business
- Express Tribune
Sugar price setat Rs165/kg after free-for-all surge
The government and sugar industry have reached an agreement, setting the ex-mill price of sugar at Rs165 per kilogramme, announced the Ministry of National Food Security and Research on Monday. "All provincial governments will ensure the availability of cheap sugar to the public in light of this decision," said a brief statement issued by the ministry. Last week, the PML-N led federal government approved the import of half a million tonnes of sugar in a bid to maintain affordable prices of the commodity. "The committee approved the import of up to 500,000 metric tons of sugar to ensure a stable supply and maintain affordable prices nationwide," said a statement posted on X. In March, Deputy Prime Minister Ishaq Dar noted that retail sugar prices should not exceed Rs164 after the Competition Commission of Pakistan (CCP) warned sugar mills against price manipulation. Dar said that according to news reports, there was a spike in sugar prices to Rs178-179, which, he said, was "obviously not tolerable" to the prime minister. In Lahore, sugar is currently being sold at arbitrary prices, ranging between Rs190 to Rs210 per kg. Citizens complain that sugar is not available anywhere in the city at the official rate-- Rs180 per kg. Since last Friday, sugar mills in Sindh and Punjab have halted sugar supply to the markets, said Wholesale Grocers Association Chairman Rauf Ibrahim. He said with supply suspended for the past four days, only stored sugar is currently being sold in Karachi, causing wholesale prices to rise from Rs178180 to Rs182 per kg and retail prices from Rs190195 to Rs200 per kg. Ibrahim criticized the government's lack of interest in cracking down on sugar mill owners and hoarders, warning that this negligence is fueling price hikes. According to sources, a collusion among sugar mill owners is the root cause behind the rising prices. This powerful cartel has historically pressured the government to permit exports under the guise of surplus stock, driving up domestic prices. Between 2015 and 2020, 2.355 million metric tons of sugar were reportedly exported to Afghanistan. However, Afghan government data confirms only 1.5 million tons were received. 778,000 metric tons were smuggled, with no records found for this volume. In past years, 26 mills benefitted from billions in subsidies for exporting 400,000 metric tons of sugar. Documents show sugar mills extracted Rs4.12 billion in subsidies up to 2021. In March, the price was set at Rs140 per kg. After exporting 750,000 tons, it rose to Rs170 per kg. The government then raised the ex-mill price by Rs20, but sugar crossed Rs200/kg in markets. In response, the government decided to import 500,000 tons of sugar. However, post-2021 IMF conditions banned subsidies on sugar exports. The government is now unable to subsidize the industry or fix minimum sugarcane prices, as the IMF demands complete deregulation of the sugar sector.
Express Tribune
14-07-2025
- Business
- Express Tribune
Sugar prices up as supply suspended
Sugar mills in Sindh and Punjab have stopped the supply of sugar to markets since last Friday. According to the Chairman of the Wholesale Grocers Association, Rauf Ibrahim, due to the halt in supply from mills over the past four days, only stored sugar is being sold in Karachi. As a result, the wholesale price of sugar has risen from Rs180 to Rs182 per kg, while the retail price has increased from Rs195 to Rs200 per kg against government's fixed price of Rs164 per kg. He said that due to the government's lack of interest in taking action against sugar mill owners and hoarders, sugar prices are rising. Rauf Ibrahim alleged that sugar mafia is behind this crisis.
Express Tribune
05-07-2025
- Business
- Express Tribune
SMEDA, Akhuwat join hands
Listen to article In line with the prime minister's vision of inclusive economic growth through grassroots entrepreneurship, the Small and Medium Enterprises Development Authority (SMEDA) has signed a Memorandum of Understanding (MoU) with Akhuwat Islamic Microfinance (AIM) to improve access to finance, formalisation, and hand-holding of micro enterprises across Pakistan. According to an official statement released on Saturday, the MoU was signed by SMEDA CEO Socrat Aman Rana and Akhuwat Foundation Founder and Chairman Dr Amjad Saqib, in the presence of Federal Secretary for Industries and Production Saif Anjum at the SMEDA head office. Addressing the ceremony, Secretary MOIP Saif Anjum highlighted that micro, small, and medium enterprises (MSMEs), as the backbone of Pakistan's economy, play a critical role in driving resilience, employment, and innovation. He emphasised that micro enterprises are a top priority in the prime minister's economic agenda. He noted that a steering committee, headed by himself, had been constituted to address challenges faced by the MSME sector. As part of its efforts, the committee has also initiated a reorganisation of SMEDA to enhance its effectiveness in serving the SME sector. "Today's MoU between SMEDA and AIM reflects the commitment of Prime Minister Shehbaz Sharif and SAPM Haroon Akhtar Khan to empower MSMEs," he stated. He expressed hope that the collaboration would strengthen micro-financing and capacity building, helping to create a robust ecosystem for bridging financial gaps and promoting inclusion of micro enterprises in the formal financial landscape. He lauded SMEDA's contributions in training, advisory services, and advocacy, and praised AIM's efforts in promoting financial inclusion. Earlier, SMEDA CEO Socrat Aman Rana welcomed the guests and outlined the objectives of the MoU. "This collaboration with Akhuwat is a concrete step toward realising the prime minister's dream of a robust and equitable entrepreneurial ecosystem," he said. He stressed SMEDA's focus on strengthening micro enterprises through targeted capacity building and streamlined regulatory processes. He acknowledged the role of the SAPM in facilitating the collaboration, citing his ongoing support for SMEDA's mission and advocacy for MSME development. Sharing sector data, the SMEDA chief noted that microfinance now serves nearly 12 million active borrowers, supported by a gross loan portfolio of approximately Rs644 billion, reflecting a strong 13% year-on-year growth. Notably, 46% of borrowers are women, highlighting the sector's inclusive and gender-sensitive impact. He added that the main areas of microfinance. trade and services (Rs144 billion), livestock and poultry (Rs164 billion), and agriculture (Rs138 billion), mirror the core of Pakistan's MSME ecosystem, especially in rural and semi-urban regions. However, he warned that access to formal finance remains a major hurdle for MSMEs, particularly in underserved areas. He termed the MoU a major breakthrough to bridge this financing gap and unlock Pakistan's entrepreneurial potential. Speaking at the event, AIM Chairman Dr Amjad Saqib expressed confidence that the collaboration would enhance micro enterprises' access to finance through AIM's nationwide network. He acknowledged the vital role of micro enterprises in poverty reduction and employment generation, and hoped the partnership would contribute meaningfully to national economic growth.
Business Recorder
03-07-2025
- Business
- Business Recorder
FIA arrests former RAILCOP officials over Rs1.17bn fake bank guarantees scam
The Federal Investigation Agency (FIA) has arrested three former senior officials of RAILCOP, a subsidiary of Pakistan Railways, in a high-profile corruption case involving fake bank guarantees worth over Rs1.16 billion, a statement from the Ministry of Railways said on Thursday. Those arrested include Syed Najam Saeed, former chief executive officer of RAILCOP; Muhammad Zubair Hussain, ex-controller finance and accounts; and Meh Run Nisa, former director of commercial & marketing. The arrests were made by the FIA's Anti-Corruption Circle in Islamabad under FIR No. 37/2025 registered on June 30, according to the statement. The three former executives are accused of colluding with Irfan Hameed Khan, chairman of M/s Indus Valley Industrial Junction (IVIJ), to prepare and submit 14 fake/bogus bank guarantees of United Bank Limited and Bank Al Habib Limited worth Rs1.17 billion in favour of different government departments for participation in tendering processes of development projects. According to the statement, M/s IVIJ received Rs164,969,160/- (nearly Rs165 million) as commission from RAILCOP Islamabad in respect of providing said 14 fake/bogus Bank Guarantees illegally. 'Thus, they caused huge loss to the tune of Rs164,969,160/- to national exchequer,' the ministry said, 'Tomorrow they will be produced in court for remand.' Investigation is underway.
Express Tribune
25-06-2025
- Business
- Express Tribune
High-value transactions stay cash-based: SBP
High-value transactions in Pakistan continue to rely significantly on paper-based and over-the-counter (OTC) methods, indicating issues of trust or accessibility in digital high-value channels. While 89% of Pakistan's retail payments are now conducted through digital channels, they represent just 29% of the total transaction value — Rs48 trillion out of Rs164 trillion — according to the State Bank of Pakistan (SBP)'s latest Payment Systems Quarterly Review. In stark contrast, OTC payments processed through bank branches and branchless banking agents, though only 11% by volume, account for a dominant 71% share in value. This disparity highlights a key challenge in the country's digital transition: high-value transactions continue to rely heavily on cash and paper-based methods, suggesting ongoing trust, usability, or accessibility concerns in digital channels for large payments. The SBP has released its Quarterly Payment Systems Review for Q3FY25, summarising trends in payment systems and presenting notable changes in the country's digital payment landscape. Digital payments in the country continued their upward trajectory during Q3FY25, with substantial increases in transaction volume and value. Retail payment volumes climbed 12% to reach 2,408 million transactions, while the overall transaction value grew by 8% to Rs164 trillion. Digital channels accounted for 89% of all retail transactions. Mobile app-based platforms — including mobile banking apps, branchless banking (BB) wallets, and e-money wallets — collectively processed 1,686 million transactions worth Rs27 trillion, reflecting a 16% growth in volume and a 22% surge in value. The number of users of digital banking services also witnessed a steady rise. Mobile banking app users grew to 22.6 million (up by 7%), e-money and BB wallet users increased to 5.3 million (up by 12%) and 68.5 million (up by 6%) respectively, while internet banking users reached 14.1 million (up by 7%). Internet banking, despite a growing user base of 14.1 million, showed only marginal growth in transaction value, suggesting limited use beyond basic fund transfers. Meanwhile, call centre and Interactive Voice Response (IVR)-based banking has become virtually obsolete, raising concerns about service accessibility for digitally marginalised populations. Credit card usage remains limited, with only 4% of the 57.5 million cards in circulation being credit cards. E-commerce payments increased by 40% in volume to 213 million and by 34% in value to Rs258 billion compared to the previous quarter. Digital wallets were the largest contributors to e-commerce payments — 94% (199.1 million) by volume — while card-based online payments accounted for only 6% (13.5 million). For in-store purchases, 140,861 merchants processed 99 million (up 12%) transactions worth Rs550 billion (up 8%) using a network of 179,383 point-of-sale terminals. Additionally, merchants accepting QR codes processed 21.7 million transactions valued at Rs61 billion. SBP-operated payment systems, Raast (Instant Payment System) and RTGS (Real-time Gross Settlement System), have been instrumental in accelerating digital payments. Raast processed 371 million transactions worth Rs8.5 trillion during the quarter, bringing cumulative volumes since its launch to 1.5 billion transactions and more than Rs34 trillion in value. Large-value payments via RTGS handled 1.5 million transactions amounting to Rs347 trillion. Although Raast has seen strong growth in person-to-person (P2P) transfers, with transactions rising to 368 million, its person-to-merchant (P2M) component remains underutilised. Only 1.5 million P2M transactions worth Rs4.5 billion were recorded, despite onboarding over 770,000 merchants. This points to weak adoption of QR and account-based payments at retail points. The shift towards a digital economy is well-supported by SBP's strategic initiatives, as well as the concerted efforts of banks, fintechs, and payment service providers, SBP stated. As digital payments expand, SBP remains committed to promoting financial inclusion and improving payment efficiency for all stakeholders. Experts say the persistent dependence on cash, underdeveloped credit infrastructure, geographic disparities in digital access, and low interoperability across platforms are key hurdles to realising the full potential of digital financial inclusion in Pakistan.
