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Petrol price may increase by Rs20 from Feb 16

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  • Next petrol price review due on Feb 15.
  • PDL may also be increased on diesel.
  • Sharp increase in POL prices is expected.

KARACHI: The prices of petrol may witness a surge of Rs20 per litre in the next two weeks’ review — which is to be held on February 15, 2023, The News reported on Tuesday.

This recent uptick in petrol price was based on the calculations of the international price of petrol i.e. free on board (FOB) basis, oil industry sources told the publication. 

The government had carried out a massive increase of Rs35 per litre in the last fortnightly review of fuel prices. Currently, the government is charging Rs50 per litre petroleum levy (PL) whereas general sales tax (GST) has not been imposed yet.

The price of petrol may further increase provided the foreign exchange rate was adjusted in the next review, the sources mentioned.

They further said that the exchange rate was on the higher side, which would deprive the local consumers of any benefit or reduction in the prices of petroleum products. 

The prices of petrol in the international market have decreased, but the steep depreciation of the rupee against the dollar has eroded the gains to detriment of domestic consumers.

The sources also added that the petrol price might go up even further if the government adjusted Rs20 per litre on account of the exchange rate as well, which would cumulatively take the price by up to Rs40 per litre. 

On the other hand, diesel price was not reflecting any increase on FOB sans exchange rate adjustment. The sources said that if the exchange rate was adjusted, diesel prices could go up in the next review.

The government had adjusted Rs14 per litre on diesel on account of the exchange rate; however, the steep appreciation of the dollar has eaten up the exchange rate adjustment of the last review.

They noted that diesel prices went down by five to six dollars per barrel in the global market, but rupee depreciation would not allow the government to pass on this reduction in global prices to local consumers. 

The last increase in prices of petroleum products was made in the review on January 29, 2021, by the federal government. After the review, petrol price was tagged at Rs249.80 per litre; high-speed diesel Rs262.80 per litre; kerosene oil Rs189.83 per litre; and light-speed diesel Rs187 per litre.

On January 29, 2023, the government increased the prices of petrol and high-speed diesel by Rs35 per litre each and the rates of kerosene oil and light diesel oil were increased by Rs18 per litre each.

Pakistan is currently facing a short supply of petrol, with its most populous province, Punjab bearing the brunt of the crisis. Major and smaller cities, towns and villages in Punjab do not have the fuel, which was also being blamed on petroleum dealers.

Last week, sources had said that other than the low import of petrol by a majority of Oil Marketing Companies (OMCs), petroleum dealers were having a field day and were involved in the hoarding of petrol in view of the expected increase in prices by mid-February.

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In January 2025, RDA inflows reach 9.564 billion USD.

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Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.

The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.

Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.

By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.

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FBR lowers Karachi’s built-up structure property valuation rates

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A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.

The notification said that built-up structural values on residential property will be gradually reduced.

A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.

In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.

Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.

Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.

In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.

In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.

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Remittances Increase 25.2% in January 2025: $3.0 Billion Inflow

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Remittances from Pakistani workers totalled US$3.0 billion in January 2025, representing a 25.2% increase from the previous year.

The cumulative remittances for July through January of FY25 were 20.8 billion dollars, up 31.7 percent from 15.8 billion dollars during the same period in FY24.

In January 2025, the United States of America contributed 298.5 million dollars, the United Kingdom contributed 443.6 million dollars, the United Arab Emirates contributed 621.7 million dollars, and Saudi Arabia contributed 728.3 million dollars.

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