CCP grants a time-bound exemption
The Competition Commission of Pakistan (CCP) has granted a time-bound exemption on the relevant clauses of the product supply agreement between Aramco Trading (ATC) Fujairah FZE Ltd and Gas & Oil Pakistan Ltd (GO Petroleum) for importing and selling gasoline and diesel products to Pakistan.
ATC Fujairah, registered in the United Arab Emirates, is one of the world’s largest integrated energy and chemicals companies. Gas & Oil Pakistan Ltd, an Oil Marketing Company (OMC) registered in Pakistan, operates a network of retail outlets nationwide selling petrol, diesel, and lubricants.
Under the agreement, ATC Fujairah intends to meet GO Petroleum’s demand for essential petroleum products, primarily gasoline and diesel, for its outlets. The parties have informed the CCP that this arrangement aims to achieve economies of scale in procurement for GO Petroleum, potentially resulting in better prices for Pakistani consumers. The exemption sought pertains to the exclusivity aspects of the commercial agreement, supplying 100 percent of the imported products for GO Petroleum’s retail outlets.
Report: excise duty structure fuels counterfeit cigarette use
The current excise duty structure on tobacco products has led consumers to shift from legally compliant cigarette brands to illegal, tax-evaded ones, causing an estimated annual revenue loss of Rs310 billion for the national exchequer. Illicit cigarette brands now hold over 60 percent of the total market, as revealed in a report titled “Illicit Cigarette Trade in Pakistan – Current Situation and Way Forward,” released by the National University of Sciences & Technology (NUST).
The report was formally launched at a local hotel ceremony attended by Federal Minister for Defence, Khawaja Muhammad Asif, and Dr Rizwan Riaz, the Pro-Rector of Research Innovation and Commercialisation at NUST. They were briefed on the intricate challenges facing the cigarette industry, including administration, revenue collection, policy coordination, and market dynamics, exacerbating tax revenue losses.
Pakistan- poland trade surpasses $920m
The Ambassador of Poland, Maciej Pisarski, announced that the overall trade volume between Pakistan and Poland has exceeded $920 million. Pakistan’s exports amounted to $800 million, facilitated by the GSP Plus arrangement granting duty-free access to Pakistani goods in the Polish market. Meanwhile, Poland’s exports to Pakistan totalled $128 million last year.
ML-I railway project sent for ECNEC’S Nod
The government on Wednesday gave initial clearance to what it earlier called an “unviable” $6.7 billion worth of Mainline-I (ML-I) railway project of the China-Pakistan Economic Corridor (CPEC), though the Ministry of Finance pointed out that the scheme was in conflict with goals of the next International Monetary Fund (IMF) loan programme.
The Central Development Working Party (CDWP), which is mandated to clear mega development projects – referred the ML-I project to the Executive Committee of the National Economic Council (Ecnec) for approval.
Korean financiers assured of resolution of issues
Federal Minister for Industries and Production Rana Tanveer Hussain on Wednesday met South Korean Ambassador Park Ki Jun to discuss the deepening of bilateral cooperation between the two countries.
A delegation from leading South Korean companies also accompanied the ambassador, said a statement.
The minister said that both countries enjoyed historical and cordial relations and engaged in multifaceted bilateral cooperation in many areas including the economy and culture.
SBP: uncertainty chief contributor to inflation
Pakistan’s central bank has reported that political and economic uncertainty has played a leading role in driving the inflation rate to a multi-decade high, while commodity prices, surprisingly, have had a positive impact on recent inflation readings in the country.
In its study titled ‘Inflation Dynamics in Pakistan: Determinants and Structural Challenges’, the State Bank of Pakistan (SBP) stated, “The change in global commodity prices has also had a positive and significant impact on inflation between FY06 and H1 (first half of) FY24.”
Tractor sales likely to touch 40,000 units
The tractor parts industry is bracing for a downturn in sales, like the previous financial year (2022-23) when sales remained thin due to poor economic conditions in the country.
Tractor sales this year are likely to touch 40,000 units, thanks to the low mark-up loan scheme of the government. However, sales of parts are still 50 percent lower than the tractor production capacity in the country, said Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Chairman Abdul Rehman Aizaz.
Pakistan investment plummets to 50-year low
Pakistan’s investment ratio has plunged to its lowest level in 50 years, falling to just 13.1 percent of the size of the economy in the outgoing fiscal year, despite efforts by the Special Investment Facilitation Council (SIFC), according to figures approved by the National Accounts Committee (NAC).
This half-century low investment-to-Gross Domestic Product (GDP) ratio affirms apprehensions that the SIFC alone cannot significantly boost investment without improvements in the fundamental aspects of Pakistan’s economy and the achievement of political stability.
Government ally opposes PIA sell-off
The senators of the PPP, a leading party in the ruling alliance, on Wednesday opposed the privatisation of the Pakistan International Airlines (PIA) during a session of the upper house of parliament — in a development that might threaten the fragile government set-up in the Centre.
PPP senators Quratulain Marri, Zamir Hussain Ghumro, Muhammad Aslam Abro, Poonjo Bheel, and Syed Kazim Ali Shah moved a calling attention notice over the PIA’s privatisation.
Speaking on the notice, Senator Quratulain said the PIA was the country’s national carrier and should be run under the public-private partnership mode.