Latest news with #Rs2.1
Business Recorder
11 hours ago
- Business
- Business Recorder
Flat generation; rising pressures
Power generation for FY25 has closed at 122.96 billion units, effectively flat year-on-year with a negligible 0.06 percent dip. But scratch the surface, and the stagnation tells a deeper story. This marks the lowest annual generation in five years, still 11 percent shy of the FY22 peak of 139 billion units. Even the modest 1.8 percent year-on-year growth in June 2025 hardly impresses—it remains below FY21 levels and barely edges past the pandemic-struck June 2020. All this has happened despite a sharp rise in installed capacity. Back in FY20, the capacity component of the Power Purchase Price (PPP) for nearly the same number of units cost Rs794 billion—Rs7 per unit. Fast forward to FY25, and the capacity bill for the same output has ballooned to Rs17.5 per unit, with the official reference assuming Rs15.9 for a hefty Rs2.1 trillion bill for capacity charges. A 6 percent shortfall from reference generation means additional fiscal burden—an outcome the system can scarcely afford. Fortunately, the fuel component of the PPP offered some relief, with international commodity prices and the PKR largely stable through FY25. But that alone won't bail out the system. What's more troubling is that the dip in grid generation doesn't reflect a proportional fall in national demand. Rooftop solar continues to pull demand off the grid, a trend flagged repeatedly in thisspace. At the same time, industrial users' reliance on captive power has kept grid demand suppressed. The recent shift in policy to push industries back to the grid will reclaim some of that lost demand—but not all. The household and commercial segment, especially those milking the overly generous net metering regime, will continue to shrink grid reliance. Reports suggest the Prime Minister has again blocked reforms to rationalize solar payback—the third such intervention in under a year. While solar remains viable (and should), the current net metering policy desperately needs fairness and balance to avoid systemic distortions. Finally, don't expect GDP to come to the rescue. Pakistan's near-term growth outlook remains muted—meaning organic demand revival will be slow. Tariff reliefs and subsidy-led pushes may offer short-term support, but the real test lies in restoring grid demand at affordable rates. Without that, the system's structural imbalances will persist. Copyright Business Recorder, 2025
Time of India
07-07-2025
- Automotive
- Time of India
Racecourse Road widened, residents seek speed breakers
Trichy: The state highways department has completed road widening of a narrow portion of the Racecourse Road in Khajamalai in Trichy city at Rs2.1 crore sanctioned under the Comprehensive Road Infrastructure Development Programme (CRIDP). The narrow stretch of Racecourse Road connecting Trichy-Madurai national highway (NH) in Mannarpuram with Khajamalai was widened from seven metres to 10m. The road's width which varied has been standardised now by utilising the existing highways land. While residents have welcomed the widening, they expressed apprehension of overspeeding by two-wheelers and trucks coming to the godowns nearby, and have sought the highways department to install speed breakers to prevent accidents. "College students often walk close to the carriageway to reach bus stops. Residential streets branch off from the Racecourse Road too; new speed breakers are needed to prevent overspeeding," H Ghouse Baig, a resident of Khajamalai said. Highways department officials said that two speed breakers will be developed on the widened road. "More speed breakers require the approval of the city police," the official added. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo Paver blocks will be provided as a part of the widening project for about 650m in length between the Khajamalai bus stop and SBI branch office, passing through the district collector's camp office and official quarters of judges and public works department officials.
Express Tribune
07-07-2025
- Business
- Express Tribune
All graveyards in Karachi to be registered: Mayor Wahab
A man reads a prayer on a phone as he sits at Sakhi Hassan Graveyard, which is filled with plants seeded by relatives of the dead, in Karachi, July 12, 2022. REUTERS Karachi Mayor Murtaza Wahab has announced that all cemeteries across the city will be registered. Currently, 38 graveyards are managed by Karachi Metropolitan Corporation (KMC), but the city has over 200 burial grounds. He announced that the official rate for a grave within KMC-administered cemeteries is set at Rs14,300. The mayor also issued a warning to gravediggers and caretakers charging unauthorised fees, calling for strict action against violators. Read: KMC ends charged parking at 32 roads In January, the KMC began displaying banners at registered cemeteries to show the fixed burial rate of Rs14,300, following directives by Mayor Murtaza. Cemeteries Director Sarwar Alam had at the time warned staff against overcharging and stressed that no unregistered workers would be allowed inside graveyards. Mayor Murtaza last month unveiled the KMC Rs55.137 billion budget for the 2025–26 fiscal year. Over Rs5.3 billion has been earmarked for municipal operations, with more than Rs2.1 billion set aside for departments such as land management, katchi abadis, estate, and charged parking.
Express Tribune
18-06-2025
- Politics
- Express Tribune
PTI criticises VIP vehicle spending
The Pakistan Tehreek-e-Insaf (PTI) has criticised the Punjab government for approving the purchase of hundreds of high-end vehicles for officials amid ongoing economic hardship and underfunded public services. In an statement, the party said the government has allocated over Rs2.1 billion for 283 official vehicles, including 10 bulletproof vehicles costing Rs500 million for senior police officers, 48 protocol vehicles priced at Rs900 million and 76 cars for ministers and senior bureaucrats at an estimated Rs710 million. Additional spending on fuel and maintenance will also be required. The PTI said the spending reflects a "growing disconnect" between the leadership and the people of Punjab who continue to face inflation, unemployment and deteriorating public services. It highlighted significant increases in allocations for elite government offices. The budget for the Governor House has increased by 870 per cent to Rs1.53 billion, while allocations for provincial ministers have more than tripled to Rs1.07 billion, it stated. The Chief Minister's Office received a 19% hike to Rs1.46 billion, and the Punjab Assembly's budget rose 47% to Rs7.38 billion. The commissioners' offices reportedly overspent Rs319 million during current financial year and are now allocated Rs1.85 billion for the next fiscal year. The Chief Minister's Inspection Team's budget also increased by 26% following unauthorised spending of Rs182 million. "These spending patterns are a political indictment of the government's misplaced priorities," the PTI said. "While basic sectors like health, education, and agriculture remain underfunded, public officials are rewarding themselves with expensive perks." The party also criticised the chief minister's prolonged absence from the assembly despite a growing budget for her office, calling it a "symbol of the administration's lack of accountability". The party demanded a forensic audit by the National Accountability Bureau (NAB) into the luxury vehicle purchases and the associated budget increases. It called for immediate reversal of unauthorised expenditures and legal action against those responsible for diverting public resources.
Express Tribune
25-05-2025
- Business
- Express Tribune
IMF says talks on budget to continue
Listen to article The International Monetary Fund (IMF) on Saturday returned to Washington without formally concluding discussions, saying that the talks would continue in coming days with a view to "agreeing on the budget", in a statement that shows gaps between the two sides. "We will continue discussions towards agreeing over the authorities' fiscal year 2026 budget over the coming days," stated Nathan Porter, the outgoing Mission Chief to Pakistan, in a statement issued after the end of 10-day talks held on the contours of the new budget. Porter said that the discussions focused on actions to enhance revenueincluding by bolstering compliance and expanding the tax baseand prioritise expenditure". The IMF mission was scheduled to arrive in Pakistan on May 13 till May 23 but due to India-Pakistan tensions, it held the first round of talks from Turkyia. The face-to-face discussions began on May 19 from Islamabad but did not conclude within the pre-agreed timeframe. The IMF said that its staff visit was focused on recent economic developments, programme implementation, and the budget strategy for fiscal year 2026. The government sources said that there was broader understanding on the next fiscal year's overarching goal of primary budget surplus; however, there were gaps in the understanding of both sides, particularly over the modus operandi to reach the goal. Porter said that the authorities concerned reaffirmed their commitment to fiscal consolidation while safeguarding social and priority expenditures, aiming for a primary surplus of 1.6% of GDP in FY2026. At the next fiscal year's projected size of the economy, the surplus will be equal to nearly Rs2.1 trillion, which is slightly lower than what the Ministry of Finance stated last week. Interestingly, the IMF said that based on the preliminary findings of this mission, the IMF staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision. The government sources said still no consensus had been reached over the next fiscal year's tax target, some revenue measures and relief to certain sectors. They said that the target would depend on the spending outlays for the three major heads of the budget. There were also gaps on the points of giving relief to the salaried class, the real estate sector and taxing of pensions, said the sources. Last week, Prime Minister Shehbaz Sharif termed the proposed relief for the salaried class by the FBR as insufficient and instead asked the tax machinery to secure more relief. The senior FBR and the finance ministry negotiators said that the quantum of the salaried class relief was not yet decided. The sources said that the IMF asked Pakistan to propose alternate measures to provide relief to the salaried class. The Fund suggested imposing taxes on high-end pensioners and using the money for providing relief to the salaried class. However, the IMF's condition to link relief for the salaried class with other measures which, in fact, is a reversal of injustice done to it in the last budget, was not justified. The salaried class has already paid Rs437 billion in income tax compared to less than Rs4 million by the traders. The IMF's statement on broadening the tax base seems cosmetic, as it did not do anything against the government's failure to collect due taxes from retailers. The sources said that the government's view about taxing the pensioners was that it would be a politically difficult decision to tax the high-end pensioners. The government is again inclined to provide relief to the realty sector, particularly reducing the transaction taxes, which is not in line with the IMF policy for the sector. The IMF had already agreed to abolish the federal excise duty, FBR Chairman Rashid Langrial said last month. Nathan said that the IMF "held constructive discussions with the authorities on their fiscal year 2026 budget proposals and broader economic policy, and reform agenda supported by the 2024 Extended Fund Facility (EFF) and the 2025 Resilience and Sustainability Facility (RSF)". Porter said that discussions also covered ongoing energy sector reforms aimed at improving financial viability and reducing the high-cost structure of Pakistan's power sector as well as other structural reforms which will help foster sustainable growth and promote a more level playing field for business and investment. The sources said that the IMF did not agree to the Power Division to allocate nearly 1% of the GDP power subsidies and consented to give Rs1.04 trillion. The government has already delayed the budget by over one week to June 10th after it could not timely sort out all the issues before approving the summary to announce the budget on June 2. Porter said that Pakistan also emphasized their commitment to ensuring sound macroeconomic policy making and building buffers. "In this context, maintaining an appropriately tight and data-dependent monetary policy remains a priority to ensure inflation is anchored within the central bank's medium-term target range of 5-7%" said Porter. Porter reiterated his earlier statement and emphasized that "rebuilding foreign exchange reserve buffers, preserving a fully functioning FX market, and allowing for greater exchange rate flexibility are critical to strengthening resilience to external shocks". Despite the IMF programme, Pakistan this time is not able to fetch in major foreign loans due to a poor credit rating. Porter said that the IMF team will remain engaged and continue its close dialogue with the authorities and the next mission associated with the next EFF and RSF reviews is expected in the second half of 2025.
