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Pakistan to ask Iran for relaxation on gas project deadline

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  • Pakistan’s delegation will hold talks in Tehran today.
  • Islamabad will have to pay $18 billion penalty after deadline.
  • Consultants say US sanctions not to impact Pakistan’s economy. 

ISLAMABAD: Pakistan will ask Iran on Tuesday to provide relaxation on the Feb-March 2024 deadline to avert the penalty of $18 billion for not laying down a pipeline in its territory, The News reported. 

Iran asked Pakistan last year to construct a portion of the Iran-Pakistan (IP) gas line project in its territory till February-March 2024 or pay a $18 billion penalty.

Pakistan was supposed to lay down the 781-kilometre pipeline from the Iranian border to Nawabshah and start consuming 750 million cubic feet of gas daily. Tehran has already laid a pipeline from a gas field to the point bordering Pakistan.

“Pakistan’s delegation will hold talks in Tehran today (November 14, 2023) with Iranian authorities and request them not to move the international arbitration seeking the imposition of an $18 billion penalty. Energy Minister Muhammad Ali may reach Tehran today (Tuesday) but it depends upon the clearance by the PM office. However, relevant officials have reached Tehran. The Energy minister arrived back today (Monday) from Kyrgyzstan,” senior officials of the Energy Ministry told The News.

“Pakistan will also sensitise Iranian authorities of endeavouring to implement the IP gas line through a third party to avoid the US sanctions imposed against Iran for its nuclear ambitions. The government has also approached the relevant US departments to find out about the impact of curbs but they have not responded citing a lengthy process to analyse the impact. The French consultants are of the view that US sanctions will have no impact on Pakistan’s economy,” the officials said.

The Inter-State Gas Systems (ISGS) of Pakistan and the National Iranian Gas Company (NIGC) signed a revised agreement in September 2019 for the pipeline. Under this accord, Iran would not approach any international court for any delay till 2024. Afterwards, Iran would be free to move to France-based international arbitration and seek an $18 billion penalty.

The officials said that Iranian authorities will be sensitised about Pakistan’s endeavours to restructure the IP gas pipeline project to avert the US sanctions. 

“Under the new option, Pakistan may not purchase the gas directly from Iran but through a third party. Iranian authorities are also on the board for the proposal.” 

Since Pakistan cannot afford US sanctions it is pedalling very carefully to implement the project,” the sources said.

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

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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.

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Weekly inflation in Pakistan increased by 0.17 percent.

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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.

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The price of gold has drastically dropped in Pakistan.

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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.

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