KARACHI: Pakistani industrialists in the country’s commercial hub of Karachi warned on Tuesday they would observe a “no export day” up to three times a week from next month to protest a hike in gas prices, saying it posed a “threat to the survival” of their businesses and could lead to the collapse of the industrial sector.
On Oct. 31, Pakistan announced a sharp increase in the price of natural gas for most households and industry ahead of the cash-strapped country’s first review of a $3 billion International Monetary Fund (IMF) bailout.
Addressing a press conference, officials from the Karachi Chamber of Commerce and Industry (KCCI) along with representatives from the Industrial Town and Value-Added Textile Associations said gas tariffs for industry had increased to about Rs2,600 per Metric Million British Thermal Unit (MMBtu), appealing to the government to bring it down to Rs1,350 per MMBtu, determined as the 100 percent cost of gas by the regulator.
“If the government fails to pay attention to the business community’s demand, we will intensify our protests by displaying protest banners all over the city and observe a ‘no export day’ twice and even thrice a week,” Jawed Bilwani, vice chairman of the ruling Businessmen Group (BMG) at KCCI, warned, saying the new tariffs were a way to “terribly penalize the industrial sector of the country.”
KCCI President Iftikhar Ahmed Sheikh said the government needed to find ways to increase its gas supplies, instead of re-prioritizing existing gas supplies, switching from one set of consumers to the other and raising the tariffs “to completely unabsorbable and unbearable level, which was purely against the spirit of Pakistan’s constitution.”
Sheikh said the gas tariff hike would lead to the closure of industries, trigger lay-offs and cause a huge retrenchment of the labor force which “might result in serious law and order situation, steep rise in street crimes and bankruptcy of manufacturing units.”
Last month, while announcing the hike in gas tariffs, Energy Minister Muhammad Ali said the tariff increase would generate nearly 400 billion rupees ($1.42 billion), adding that the state-run gas sector would from now on face no losses.
Energy sector debt has been the main issue that the IMF has highlighted in tackling the fiscal deficit and it has been recommending measures to deal with it.
Pakistani industries threaten ‘no export’ days thrice a week against sharp hike in gas prices
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Pakistani industries threaten ‘no export’ days thrice a week against sharp hike in gas prices
- On Oct. 31, Pakistan announced hike in natural gas prices for most households and industry ahead of IMF review
- Industry leaders say gas tariffs for industry increased to about Rs2,600 per MMBtu, call for Rs1,350 per MMBtu
Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects
- Pakistani officials, Binance team discuss coordination between Islamabad, local banks and global exchanges
- Pakistan has attempted to tap into growing crypto market to curb illicit transactions, improve oversight
ISLAMABAD: Pakistan’s finance officials and the team of a global cryptocurrency exchange on Friday held discussions aimed at modernizing the country’s digital payments system and building local talent pipelines to meet rising demand for blockchain and Web3 skills, the finance ministry said.
The development took place during a high-level meeting between Finance Minister Muhammad Aurangzeb, Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib, domestic bank presidents and a Binance team led by Global CEO Richard Teng. The meeting was held to advance work on Pakistan’s National Digital Asset Framework, a regulatory setup to govern Pakistan’s digital assets.
Pakistan has been moving to regulate its fast-growing crypto and digital assets market by bringing virtual asset service providers (VASPs) under a formal licensing regime. Officials say the push is aimed at curbing illicit transactions, improving oversight, and encouraging innovation in blockchain-based financial services.
“Participants reviewed opportunities to modernize Pakistan’s digital payments landscape, noting that blockchain-based systems could significantly reduce costs from the country’s $38 billion annual remittance flows,” the finance ministry said in a statement.
“Discussions also emphasized building local talent pipelines to meet rising global demand for blockchain and Web3 skills, creating high-value employment prospects for Pakistani youth.”
Blockchain is a type of digital database that is shared, transparent and tamper-resistant. Instead of being stored on one computer, the data is kept on a distributed network of computers, making it very hard to alter or hack.
Web3 refers to the next generation of the Internet built using blockchain, focusing on giving users more control over their data, identity and digital assets rather than big tech companies controlling it.
Participants of the meeting also discussed sovereign debt tokenization, which is the process of converting a country’s debt such as government bonds, into digital tokens on a blockchain, the ministry said.
Aurangzeb called for close coordination between the government, domestic banks and global exchanges to modernize Pakistan’s payment landscape.
Participants of the meeting also discussed considering a “time-bound amnesty” to encourage users to move assets onto regulated platforms, stressing the need for stronger verifications and a risk-mitigation system.
Pakistan has attempted in recent months to tap into the country’s growing crypto market, crack down on money laundering and terror financing, and promote responsible innovation — a move analysts say could bring an estimated $25 billion in virtual assets into the tax net.
In September, Islamabad invited international crypto exchanges and other VASPs to apply for licenses to operate in the country, a step aimed at formalizing and regulating its fast-growing digital market.
