Shinichi Uchida, Deputy Governor of the Bank of Japan (BOJ), has signaled that the central bank will refrain from increasing interest rates while market conditions remain unstable. Uchida’s comments, made on Wednesday, contrast with the recent hawkish stance of BOJ Governor Kazuo Ueda, who last week surprised markets with an unexpected interest rate hike. Uchida’s remarks came amid sharp market …

Mohammad Younas Dagha, Chairman of the Policy Research and Advisory Council (PRAC), has called on the State Bank of Pakistan (SBP) to reduce its policy rate from 19.5% to 17.5%. This proposed adjustment aims to keep the real interest rate positive, aligning with the International Monetary Fund’s (IMF) requirements and fostering economic growth. In a press release issued by PRAC, …

The grey currency market in Pakistan has reemerged, fueled by a surge in the smuggling of US dollars to neighboring countries. This shadowy market operates outside the official remittance channels, offering exchange rates that are significantly higher than those set by the government. According to Zafar Paracha, General Secretary of the Exchange Companies Association of Pakistan, the grey market is …

The Power Division and ex-WAPDA DISCOs are currently embroiled in a dispute over the implementation of a substantial Rs73 billion project, known as the “Asset Performance Monitoring System” (APMS). This project is intended to enhance electricity supply, operational efficiency, and modernize the management of distribution companies (DISCOs). However, the two parties have conflicting views on the effectiveness and execution of …

In a major development for Pakistan’s energy sector, new oil and gas deposits have been discovered from a well operated by Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Pakistan Oilfields Limited (POL) in Kohat district, Khyber-Pakhtunkhwa (K-P). This discovery, along with the recent revamp of gas compressors at the Sui Gas field by PPL, is …

Introduction Facing mounting concerns over soaring energy tariffs, the Pakistani government is implementing a series of measures aimed at reducing the return on equity (ROE) for power plants and incentivizing investments in the hydrocarbon sector. These initiatives are part of a broader strategy to address the affordability of energy while attracting foreign investment and improving the efficiency of the energy …

Introduction In a significant shift in Pakistan’s energy sector, French oil major TotalEnergies has announced its decision to sell its 50% stake in Total Parco Pakistan Limited (TPPL) to Gunvor Group, a global commodities trader. This transaction, which is pending regulatory approvals, signifies a strategic realignment by TotalEnergies to concentrate on core geographies with growth and transition opportunities. Details of …

Introduction In a significant development for Pakistan’s maritime sector, Federal Minister for Maritime Affairs Qaiser Ahmed Sheikh has announced plans to travel to Denmark this month to finalize a Memorandum of Understanding (MoU) with Maersk, one of Europe’s leading shipping companies. The agreement, which is set to see Maersk invest $2 billion, aims to transform Karachi into a major transshipment …

Introduction In a recent Senate Standing Committee on Energy meeting, Energy Minister Awais Leghari highlighted a dramatic increase in electricity costs from Independent Power Producers (IPPs), with unit prices soaring from Rs. 3 in 2016 to Rs. 285, marking a staggering 9600% rise over eight years. This revelation underscores significant concerns about the current structure and agreements with IPPs. Concerns …

Introduction On Monday, the Pakistani government decided to defer the privatisation of the National Bank of Pakistan (NBP) due to legal hurdles, contradicting a prior commitment made to the International Monetary Fund (IMF). This decision highlights ongoing challenges in Pakistan’s efforts to reform state-owned enterprises (SOEs) and align with international agreements. Legal and Policy Challenges Last month, Pakistan assured the …