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Fuel shortages loom amid Pakistan’s economic woes

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Fuel shortages loom amid Pakistan's economic woes

Pakistan could face a crunch in fuel supplies in February as banks have stopped financing and facilitating payments for imports due to depleting foreign exchange reserves, traders and industry sources said.

The country is facing a balance of payments crisis and the plummeting value of the rupee is pushing up the price of imported goods. Energy comprises a large chunk of the import bill.

Pakistan typically meets more than a third of its annual power demand using imported natural gas, prices for which shot up following Russia’s invasion of Ukraine.

“There is no shortage this fortnight. If we don’t have LCs (letters of credit) open right now, we might see shortages in the next fortnight,” a senior official at one of the oil companies told Reuters.
A letter of credit issued by the importer’s banks is a standard form of payment guarantee in the oil trade to the exporter.

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Oil traders, however, are shunning countries such as Pakistan and Sri Lanka due to an acute shortfall of foreign exchange. Pakistan on Sunday raised petrol and diesel prices by 16 per cent to Rs249.80 a litre and is in talks with the International Monetary Fund to unlock a suspended bailout package.

State-owned refiner Pakistan State Oil (PSO) and Pakistan LNG Ltd have left a flurry of fuel tenders unawarded in the last couple of months.

At an industry meeting on financial challenges faced by fuel importers, State Bank of Pakistan officials cited “severe liquidity issues” faced by the country for delays in the opening of LCs, according to a Jan 19 letter from Imran Ahmed, director general of oil, reviewed by Reuters.

At the same meeting, the managing director of PSO said a gasoline cargo due for loading on Jan 13 has already been cancelled due to the non-opening of LCs. “He added that the country is having limited stocks and such a situation can lead to dry out,” according to the letter.

Previously, the Oil Companies Advisory Council (OCAC), representing refining, pipeline, and marketing companies, also flagged that delays in the opening of LCs could “lead to a fuel shortage in the country”.

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In a Jan 13 letter to the Ministry of Finance, OCAC said Pakistan needs to import around 430,000 tonnes of gasoline, 200,000 tonnes of diesel, and 650,000 tonnes of crude oil every month, costing $1.3 billion to meet local demand.

“If LCs are not established on a timely basis, critical imports of petroleum products would be impacted which may lead to a fuel shortage in the country,” the OCAC said.

Pakistan bought only 223,000 tonnes of gasoline in December versus 608,000 tonnes in the same period a year earlier, data from Kpler showed. In January this year, the country was projected to import 270,000 tonnes of the fuel, compared with 393,000 tonnes in the same month in 2022, the data showed.

Some banks have denied delays in issues of LCs, while SBP did not respond to a Reuters email seeking comment.

“If there are no issues with LCs in Pakistan then why have the SBP and sector been holding meetings all of last week?” a senior official from one of the oil companies said.

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PSO said last week it was ensuring a seamless supply of gasoline and oil across the country and had ample stocks.

It also said its import cargoes were arriving smoothly as planned.

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Govt wants more women in police department: Maryam Nawaz

Govt wants more women in police department: Maryam Nawaz

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Govt wants more women in police department: Maryam Nawaz

Punjab Chief Minister Maryam Nawaz has said government wants to increase number of women in the police department.

Maryam, while addressing the passing-out parade ceremony at Chung Police Training College, said, “I salute you all. I am happy the first Sword of Honour has been awarded to a female police officer. I am proud of you. I was waiting for this event since taking oath as chief minister, she said.

“When I wore the police uniform for the first time, I realised it is a big responsibility,” said the chief minister and added she was happy to see 530 women passing out.

She said she happy to see women police officers performing duties.

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“When I wore the uniform for the first time today, I felt it was a big responsibility. I am proud of women serving in police department,” said CM Maryam.

She said there were 7,000 women police personnel serving in Punjab. “I want to increase women participation in Punjab police. Lady cops are superhuman. Women are soft hearted so they forgive.

However, there should be no tenderness in your heart for the oppressor,” said the chief minister and asked the lady police officers to take pity on the oppressed and hold the oppressor accountable for his misdeeds.

“THERE IS NO REVENGE IN MY HEART”

Maryam said there was no feelings of revenge in her heart. “If, being the chief minister, I decide something against someone, I do it with a heavy heart,” she said.

“To be a chief minister is not an easy task. I had to make hectic efforts reach this place,” she said.
She paid glowing tribute to her father Nawaz Sharif and uncle Shehbaz Sharif.

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PASSING OUT PARADE

Earlier, a passing out parade was held at Chung Police Training College. Punjab Chief Minister Maryam Nawaz attended the ceremony as a special guest.

Maryam inspected the parade dressed in police uniform. She also distributed prizes to police officers who exhibited excellent performance.

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Supreme Court reinstates Balochistan Assembly speaker, annuls ECP’s decision

Supreme Court reinstates Balochistan Assembly speaker, annuls ECP’s decision

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Supreme Court reinstates Balochistan Assembly speaker, annuls ECP's decision

The Supreme Court on Thursday annulled the decision of Election Commission (ECP) and reinstated Balochistan Assembly Speaker Abdul Khaliq Achakzai.

A three-member bench of the Supreme Court, headed by Justice Aminuddin Khan, also annulled the ECP’s order of re-polling at 12 polling stations of PB 51 Chaman.

Justice Khan asked the ECP counsel under which regulation the commission ordered re-election at 12 polling stations?

Justice Muhammad Ali Mazhar remarked that the ECP considered only 12 polling stations but ignored others.

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Justice Khan remarked that the ECP had neither conducted an inquiry nor followed any rules. The DG Law submitted that the ECP took into account those 12 polling stations regarding which it had received plea. There was high voter turnout in these 12 polling stations.

Justice Mazhar said that the ECP should have taken into account the entire constituency. Had the ECP performed according to rules, people would not have had to come to court.

The court referred the case back to the ECP after consulting the parties and ordered the commission to decide the issue within 10 days.

It may be remembered that the ECP had ordered re-polling on the application of Khaliq’s opposing candidate Asghar Khan Achakzai and withdrew the notification of his success. PML-N’s candidate Khaliq challenged the ECP decision. 

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Govt, Opp prepare power-sharing framework for NA committees

Govt, Opp prepare power-sharing framework for NA committees

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Govt, Opp prepare power-sharing framework for NA committees

The government and opposition on Thursday prepared a power-sharing formula for formation of National Assembly committees, after which the negotiations entered the final stage.

The government alliance will get chairmanship of 26 committees of the National Assembly while opposition will have chairmanship of 11 committees.

Similarly, the chairman of the Public Accounts Committee will be from the opposition and the chairman of the Kashmir Committee will be appointed from the government side.

The speaker will be the chairman of the National Assembly House Business Advisory Committee.

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According to the framework, standing committees will have 13 members and Public Accounts Committee will have 16 members from the government alliance.

Likewise, Kashmir Committee will have 15 members while House Business Advisory will have 18 members from the coalition government.

The number of opposition members in the standing committees of the National Assembly, Public Accounts Committee and Kashmir Committee will be 7-7.

Apart from this, the chairman of 14 committees of the National Assembly will be from the Muslim League-N, while PPP will get chairmanship of eight committees.

MQM will get chairmanships of two committees. Pakistan Muslim League-Quaid (PML-Q) and the Istehkam-e-Pakistan Party (IPP) will get one chairmanship each.

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10 committees will be chaired by independent members supported by PTI while one committee will be chaired by JUI.

Out of the 20 members of the standing committees, 14 members will be appointed from the government side and six from the opposition parties.

Each standing committee will have seven members from PML-N, four from PPP and one member each from PML-Q and MQM.

In the standing committee, five independent members of PTI and one member of JUI will be given membership as committee members.

Of the 23 members of the Public Accounts Committee, 16 MPs will be included from the government and seven from the opposition.
About 22 members of the Privileges Committee, 15 members will be included from the government and seven from the opposition side. Of 16 members in the government assurances committee, 11 will be from the government and five from the opposition.

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In the 22-member Kashmir Committee, the government’s quota will be 15 while the opposition will contribute with seven members. Of the 26 members of the House Business Advisory Committee, 18 will be from the government and eight from the opposition.

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