Pakistan

Dar rejects gas allocation proposals | The Express Tribune

Published

2 ہفتے ago

ستمبر 4, 2024

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ISLAMABAD:

Ishaq Dar, Chairman of a high-level committee on oil and gas, on Monday turned down a framework proposed by the Petroleum Division for the allocation of discovered gas to third parties and categorically said that the government would not “rewrite a policy” already approved by the Council of Common Interests (CCI).

The Petroleum Division presented four proposals for allocating 35% of gas discovered by exploration and production (E&P) companies to third parties.

In the first proposal, it said, the allocation policy should be applied to those fields which were depleting. However, the policy should not be applied to the existing oil and gas fields. Third, the proposed policy should be applied to new oil and gas discoveries.

In the fourth proposal, it said, the 35% gas allocation should be made in phases by gradually increasing the ratio by 5% each year till the year 2031.

However, Dar dismissed the proposals, saying that the government would implement the allocation policy in line with the spirit of the CCI decision taken during the previous caretaker setup. “We cannot rewrite the decision taken after a well-thought-out exercise,” he said and directed the Petroleum Division to submit a revised draft within 15 days.

Over the past seven months, there has been little progress on critical energy policies. Instead, investors have been discouraged, circular debt has escalated and a growing number of companies are considering exiting the country. E&P firms are reportedly hesitant to commit further investments, citing uncertainty surrounding the recent petroleum policy changes. The framework prepared by the Petroleum Division for gas allocation carries such terms that may pose a threat to the planned $5 billion investment by oil and gas exploration companies.

Exploration firms held in early July a meeting with Prime Minister Shehbaz Sharif, where they pledged the investment of $5 billion, depending on amendments to the petroleum policy regarding gas allocation for third parties. They told the meeting that around 240 potential sites would be explored for hydrocarbon deposits.

The caretaker government, in its tenure before the current Pakistan Muslim League (Nawaz)-led administration took over, approved amendments to the petroleum policy where it enhanced the share of gas allocation to third parties from 10% to 35%.

The amendments allow E&P companies to sell up to 35% of gas to third parties without government approval, provided sales were made through a competitive process and prices were not lower than the wellhead gas prices under the 2012 policy.

Sources said that during Monday’s meeting, the issue of reduction in gas supplies to public utilities was also taken up.

It was informed that the utilities were unable to take all indigenous supply and had written to exploration firms to cut supplies further to reduce the pressure on pipelines.

Sources said that petroleum secretary informed the meeting that a consultant was being hired to resolve the issue. Participants of the meeting also deliberated on revising the gas price mechanism. At present, gas utilities are relying on an asset-based return formula, which has resulted in an increase in pipeline network and load-shedding. The return was increasing due to network expansion; therefore, it was stressed that the asset-based formula should be revised.

It was proposed that gas price revisions should be made on a three-month or monthly basis, instead of the existing six months, to ease the burden on gas utilities. It would guarantee higher revenue for the utilities, the meeting was told.

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Pakistan

Pakistan, Russia plan to establish new steel mill in Karachi – Pakistan Observer

Published

9 گھنٹے ago

ستمبر 19, 2024

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ISLAMABAD – The government is considering a proposal to establish a new steel mill in Karachi with Russian cooperation and the both countries agreed to form working groups to move forward on the project.

In this regard, Deputy Minister of Industry and Trade Russian Federation Aleksei Gruzdev met with Minister for Industries, Production and National Food Security Rana Tanveer Hussain.

The minister informed that the government has earmarked 700 acres land of Pakistan Steel Mills for establishing a new steel mill. He said despite being blessed with considerable reserves of iron ore (estimated reserves of 1887 million tons), Pakistan is forced to import around $2.7 billion of iron and steel.

There is perpetual gap between domestic production and demand of iron and steel. For the last year, the gap is estimated at 3.1 million tons, he added.

Pakistan’s per capita steel consumption level is below even those of developing countries indicating significant growth potential over medium and long term.

He said efficiency of Pakistan’s steel industry is limited as it segmented (600 small units) and based on old inefficient technology.

The proposed site is located at Karachi and in closed to Port Qasim that reduces cost of transportation of raw materials.

Pakistan’s industrial and agricultural experts are set to visit Russia, marking a significant step in strengthening bilateral ties between the two nations. During the meeting, they emphasized on balance trade between both countries.

Rana Tanveer stressed the need for modern agricultural machinery to boost crop yields and enhance agricultural productivity.

He said the government will provides all the facilities to the Russian investor in the country. Aleksei Gruzdev said that his country will provide modern agricultural machinery to Pakistan in order to boost crop yields and enhance agricultural productivity across the country.

The meeting was attended by deputy trade representative of the Russian Federation in Pakistan Denis Nevzorov, secretary for industries and production Saif Anjum, secretary national food security and research Ali Tahir, additional secretary national food security Amir Mohyudin, deputy chief industries and production Abdul Samad and Executive Engineer PSM Engr. Muhammad Shoaib.

Pakistan

Anti-money laundering watchdog urges India to speed up prosecutions

Published

10 گھنٹے ago

ستمبر 19, 2024

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A customer hands Indian currency notes to an attendant at a fuel station in Mumbai, India on August 13, 2018. — Reuters

NEW DELHI: Financial Action Task Force (FATF), the global anti-money laundering watchdog, urged India on Thursday to accelerate its prosecutions in financial fraud cases.

FATF, a 40-member task force, in a report has rated India “moderately” effective on its parameter of “money laundering investigation and prosecution”, further adding that the country was compliant in most areas.

The task force sets global standards for national authorities cracking down on illicit funds generated through drug trafficking, illegal arms trade, cyber fraud and other serious crimes.

India became a member in 2010. In its report the task force said the country was “compliant” and “largely compliant” on 37 out of 40 parameters evaluated as part of its assessment.

The number of money laundering convictions over the last five years has been impacted by a series of constitutional challenges and by the saturation of the court system, the global watchdog said in its report on India, released on Thursday. India’s courts have huge backlogs of cases, with many left pending for years.

The Enforcement Directorate, India’s anti-money laundering agency, has seized assets of suspected financial criminals amounting to 9.3 billion euros ($10.4 billion) over the last five years but confiscation based on convictions amounted to less than $5 million, the report said.

“It is critical India addresses these issues in view of accused persons waiting for cases to be tried and prosecutions to be concluded,” it said.

The three areas in which there is partial compliance include bank scrutiny of political figures’ source of wealth and oversight of the finances of non-profit organisations and non-financial businesses and professionals.

The watchdog also noted that India faced financing threats from groups active in the Indian Illegally Occupied Jammu and Kashmir (IIOJK) region and money laundering from illegal activities related to corruption, drug trafficking and cyber crime.

The statement added that India needs to focus on concluding the prosecutions and properly sanction such financiers.

Pakistan

Pakistan, Russia plan free Trade Agreement with Eurasian Economic Union – Pakistan Observer

Published

11 گھنٹے ago

ستمبر 19, 2024

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ISLAMABAD – Pakistan and Russia mulled stern measures to boost economic ties with new trade and energy initiatives, as the Russian Deputy Prime Minister arrived in Islamabad to discuss several key areas of collaboration.

In a press conference with Pakistan’s Deputy PM Dar Ishaq Dar, both sides decide to explore bilateral trade between two countries reached $1 billion last year and highlighted the need to address logistical and other challenges to further enhance trade relations.

Dar stressed that energy cooperation with Russia holds significant promise and expressed Islamabad’s interest to explore more avenues. He underscored importance of developing connectivity projects, including rail and road networks, to strengthen economic ties not just between Pakistan and Russia but extending to other regions as well.

Deputy PM emphasized Pakistan’s view of Russia as a crucial player in West, South, and Central Asia, and reaffirmed that strengthening ties with Russia remains a top priority in Pakistan’s foreign policy. He reiterated Pakistan’s commitment to working with Russia to promote peace and stability in Afghanistan.

In his remarks, he revealed discussions about potential collaboration between Pakistan and the Eurasian Economic Union, which includes Armenia, Belarus, Kazakhstan, Caucasia, and Russia. The two sides explored the possibilities for implementing a free trade agreement involving these five countries and plan to continue discussions to finalize the agreement.

Russian Minister also pointed out that the upcoming inter-governmental commission meeting in Russia will serve as a platform to further enhance trade and economic relations. He further highlighted that both nations share aligned goals within the Shanghai Cooperation Organization (SCO), including in areas such as connectivity, climate action, food security, and energy transition.

Pakistan

Easypaisa introduces Rs99 fee for Biometric, and account upgradation? – Pakistan Observer

Published

13 گھنٹے ago

ستمبر 19, 2024

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EasyPaisa, mobile wallet used by over 9.5 million Pakistanis, lately added Rs99 charges for failed biometric verification with NADRA and account upgradation a fee that lacks clear regulatory justification. Users reported multiple deductions from their accounts after unsuccessful attempts to match their fingerprints.

A recent notification received by Easypaisa users said “Your fingerprints could not be matched with your ID Card from NADRA records”, asking the person to scan fingerprints.

It mentioned you can get your account biometrically verified at your nearest retailer, and that a fee of Rs. 99 will be charges from your account for biometric verfication.

Easypaisa Introduces Rs99 Fee For Biometric And Account Upgradation

The recent move raised question and Easypaisa is yet to share an official statement on the mettter of introducing new charges.

In 2023, the mobile wallet company imposed a monthly SMS alert fee of Rs15, which raised concerns among its vast users. for the unversed, Pakistan’s central bank directed all banks and microbanks to share free SMS and email alerts.