In a crucial move to meet an International Monetary Fund (IMF) requirement, the Pakistani government has agreed to impose a levy on captive power plants before receiving the next tranche of IMF funding. The levy, which will be introduced gradually to avoid major disruptions in gas supply, is designed to bring the gas prices for these plants in line with LNG rates, addressing the disparity between captive and non-captive industries.
Initially, the government plans to impose a 5% levy on the gas supplied to these plants starting in January, with the possibility of increasing it to 10% in the second phase. This decision comes after the IMF expressed concerns over the differing electricity rates for captive and non-captive industries, which the levy aims to resolve.
Meanwhile, the Pakistan Stock Exchange (PSX) experienced a significant downturn, with the KSE-100 index falling by 1.58%, losing 1,840.96 points during intra-day trading. Despite the decline, trading activity remained robust, with nearly 185 million shares exchanged. The market’s performance was volatile, as the index failed to maintain its earlier gains and ended the day at 114,414.16 points.
In a positive development, Prime Minister Shehbaz Sharif announced that the United Arab Emirates (UAE) has agreed to roll over a $2 billion loan deposit, providing much-needed fiscal relief to Pakistan. This move came after a meeting between the prime minister and UAE President Sheikh Mohamed bin Zayed, which aimed at supporting Pakistan’s economic stability.
NEWS DESK
PRESS UPDATE