Business

Pakistan, Saudi Arabia expected to make progress on Reko Diq deal

Published

7 months ago

Farwa

Progress on deal expected during 3-day mineral forum in Riyadh.
Energy minister leads high-level Pakistani delegation.
Delegation likely to discuss KSA’s interest in building refinery.

ISLAMABAD: Talks with Saudi Arabia on a potential investment deal in the Reko Diq copper and gold project are expected to progress during a three-day mineral forum that began today in Riyadh, The News reported citing an energy ministry official on Tuesday.

A high-level Pakistani delegation led by caretaker Energy Minister Muhammad Ali is attending the Future Minerals Forum (FMF), a platform to promote mineral value chains in Africa, Western and Central Asia, which will be held from January 9 to 11 in Riyadh.

The secretary of the petroleum division and officials from the Special Investment Facilitation Council (SIFC), Pakistan Mineral Development Corporation (PMDC), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Geological Survey of Pakistan (GSP) will also be part of the delegation.

The delegation is also likely to discuss Saudi Arabia’s interest in building a refinery in Pakistan, the official said.

“Pakistan authorities may also take up this issue of paramount importance with Aramco officials during the visit.” Aramco wants the participation of Sinopec — a Chinese company in the refinery project and Pakistan has agreed to it.

Saudi Arabia is seeking to attract SR63.7 billion ($170 billion) worth of investment in the mining industry by 2030 to help the country capitalise on its wealth of mineral resources, the total value of which is estimated to exceed SR4.88 trillion ($1.3 trillion), an official said.

In 2022, the Geological Survey of Pakistan (GSP) and Ma’aden, a Saudi-owned mining company, developed an understanding for a survey to locate the treasures of the minerals.

Apart from attending the Forum, the official said, the relevant authorities of Saudi Arabia and Pakistan during the visit will also deliberate on the possible investment in the Reko Diq project and both countries may strike a deal to this effect.

In addition, the visiting authorities are also likely to take up with Saudi Arabia its interest in installing a state-of-the-art deep conversion refinery in Pakistan. The SIFC is highly keen to sell government shares to Saudi investors to enhance the footprints of Saudi investment in Pakistan.

The investment that is to be made by Saudi investors (KSA) will be treated as a strategic investment, one official stated to The News, while quoting SIFC’s top official.

Under the revised agreement, 50% of shares are held by the Canadian company Barrick Gold Corporation whereas Antofagasta of Chile has exited the project in return for $900 million deposited by three entities of the federal government — OGDCL, PPL and Government Holdings Private Limited.

These entities hold a 25% share in the project whereas the same number of shares are owned by Balochistan. Of them, 15% are on a fully-funded basis and 10% on a free carried basis.

The Energy Minister Ali and top officials of the power division have played a pivotal role in the directives of SIFC to make an agreement of the government of Pakistan with K Electric and resolve all its issues to facilitate its main owner which is Aljomaih Power Limited Company of Saudi Arabia.

It was one of the conditions from the Kingdom that Pakistan should first facilitate Aljomaih Power Limited of Saudi Arabia by resolving all issues of KE for more investment in Pakistan in mining, refinery, agriculture and other sectors.

The majority shares — 66.4% — of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF).

Business

An investigation was “launched” into PTA’s inability to get Rs. 78 billion back from Telcos

Published

18 hours ago

Farwa

The PTA has reportedly been instructed to reply to NAB by July 29. According to the enquiry, the national exchequer has suffered losses as a result of the delay in collecting dues.

The PTA has been asked to provide NAB with information about any pertinent records, court proceedings, and overdue bills. The NAB Karachi has summoned the PTA officials to appear with all pertinent documentation.

All of the principle sum has to be paid by the LDI firms, according to sources. But due to judicial stay orders, the collection of dues has been impeded.

These sources further state that a steering group has been established by the Ministry of IT to supervise the issue of dues recovery.

In a previous event, the tariffs levied on importing cell phones from outside were clarified by the Pakistan Telecommunication Authority (PTA).

Contrary to what some internet reports claim, PTA clarified in response to recent news regarding the tariffs on mobile phone imports that there hasn’t been a formal decision to remove these levies in Pakistan.

the PTA.Pakistanis living abroad will be the only ones free from these levies, according to the PTA. A SIM card can be inserted and the phone restarted to temporarily register a device for non-PTA mobile subscribers.

Business

Weekly inflation in Pakistan increased by 0.17 percent.

Published

18 hours ago

Farwa

The SPI for the week under review in the aforementioned group was reported at 321.95 points, as opposed to 321.40 points during the previous week, according to the PBS statistics.

The SPI for the combined consumption group saw a 20.09 percent increase in the week under review compared to the same week the previous year.

The weekly SPI includes 51 necessary items for every spending group and 17 urban areas, with a base year of 2015–16 = 100.

The SPI for the lowest consumption category, which is up to Rs 17,732, grew by 0.08 percent from 311.97 points to 312.22 points this past week.

0.18 percent,The index of consumption for the lowest consumption groups, which are Rs 17,732-22,888, Rs 22,889-29,517, Rs 29,518-44,175 and above Rs 44,175; increased by 0.13 percent, 0.15 percent, 0.18 and 0.19 percent, respectively.

Nineteen (37.25%) of the fifty-one commodities had price increases over the week, eight (15.69%) had price decreases, and twenty-four (47.06%) had unchanged pricing.

On a weekly basis, the following commodities saw significant price decreases: tomatoes (9.19%), onions (2.14%), LPG (1.04%), bananas (0.53%), wheat flour (0.35%), potatoes (0.17%), pulse masoor (0.16%), and bread (0.05%).

Chicken (4.80%), garlic (2.01%), pulse gramme (1.87%), eggs (1.71%), beef (0.93%), gur (0.89%), pulse moong (0.84%), fresh milk (0.45%), firewood (0.23%), and cigarettes (0.12%) were among the items whose average prices increased significantly week over week.

The commodities that saw a year-over-year decline were: wheat flour (31.75%); cooking oil (13.44%); vegetable ghee 2.5 kg (10.42%); vegetable ghee 1 kg (9.85%); mustard oil (8.33%); eggs (5.82%); rice basmati broken (4.15%); and tea package (2.52%).

Gas prices for Q1 (570.00%), onions (96.01%), pulse gramme (40.39%), powered milk (39.11%), garlic (34.61%), pulse moong (29.77%), men’s sandals (25.01%), beef (23.52%), salt powder (23.28%), pulse mash (22.50%), and energy saver (17.96%) were among the commodities whose average prices increased year over year.

Business

The price of gold has drastically dropped in Pakistan.

Published

2 days ago

Farwa

As per the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the cost of 24-karat gold per tola decreased by Rs 2,300, standing at Rs 250,500.

A kilogramme of 24-karat gold costing Rs1,972 less at the local market, making it worth Rs2114,763. Ten grammes of 22-karat gold had a price decrease to Rs196,866 as well.

After losing a significant $43 during the day, the rate per ounce of gold on the international market also decreased. It currently stands at $2,370.

On Thursday, the price of 24-karat silver also experienced a decline, falling by Rs60 to settle at Rs2,860 petal.