Business

Cost-of-living crisis is worsening not just in Pakistan but even in the developed West

Published

5 months ago

December 7, 2023

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Cost-of-living crisis is worsening not just in Pakistan but even in the developed West

Inflation is hitting the low-income groups and even the middle class hard across the world, including Pakistan, as reduced purchasing power has produced a cost-of -living crisis at a time when the international financial institutions, top central banks and many governments are against pay raises while arguing that any increase in money supply will fuel the prices.

They have gone for interest rate hikes which in turn have crippled the economy, meaning there are no new businesses or expansion in existing ones to generate job opportunities.

As small enterprises are finding it hard to survive and are shutting down or bought by the larger entities, many big businesses – especially the banks and big tech companies – are reducing their workforce.

The same big businesses, which earned huge profits during and after the COVID pandemic through stock markets and other avenues, aren’t ready to share their earnings with their staff, thus making the employees rejecting the reasons given behind the high inflation and interest rates.

Hence, they don’t see any point in rising stocks and could only see a widening rich-poor divide as a result of unbridled concentration of wealth being seen since 1980s thanks to the narrative best illustrated and promoted by Thatcherism – a reduced government role and large-scale privatisation with reduced social benefits or social security.

In a latest example, Reuters reported that Germany’s GDL train drivers’ union said on Wednesday it would go on strike Thursday (today) afternoon until Friday evening as a wage dispute with rail operator Deutsche Bahn continues.

The strike will start at 18:00 local time for freight traffic and at 22:00 for passenger trains. It will end on Friday at 22:00, the union said.

In addition to Deutsche Bahn, the strike also applies to regional train operators Transdev, AKN Eisenbahn and City-Bahn Chemnitz.

The GDL broke off negotiations with Deutsche Bahn at the end of November and announced a further strike. At the same time, the union has initiated a ballot for an indefinite strike, the results of which should be available before Christmas.

The GDL is demanding a reduction in working hours from 38 to 35 hours per week for shift workers, as well as an increase of 555 euros per month and a one-off inflation compensation bonus of 3,000 euros.

Deutsche Bahn rejects the demanded reduction in working hours due to a labour shortage and has offered an 11 per cent increase in wages and salaries for a collective agreement term of 32 months. The GDL rejected the offer.

The train drivers’ union has already held a 20-hour strike at Deutsche Bahn in mid-November.

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Business

Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

Published

2 days ago

May 17, 2024

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Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

A notable Chinese company has expressed keen interest in expanding its investment in Pakistan, in yet another sign of investor confidence boost in the leadership of Prime Minister Shehbaz Sharif.

A delegation from Chinese firm MCC Tongsin Resources led by its Chairman Wang Jaichen called on PM Shehbaz here on Friday.

The premier invited the Chinese company to invest in Pakistan’s mining sector and manufacturing of export goods.

Shehbaz assured the delegation that his government would extend all-out facilitation to the company from minerals exploration and processing to the export of goods.

The PM instructed the relevant federal ministers and officers to continue consultation with the Chinese firm, taking the Balochistan chief minister, provincial departments and stakeholders on board.

The delegates reposed trust in PM Shehbaz’s leadership, and expressed keen interest in enhancing their investment in Pakistan’s mining and minerals sectors.

The delegation briefed Prime Minister Shehbaz about the construction of a mineral park in Pakistan and their future investment plans.

The premier welcomed the Chinese firm and highlighted the priority steps by his government to promote foreign investment in Pakistan.

He said that being a time-tested friend, China supported Pakistan in every difficult hour for which the Pakistani nation was grateful to the leadership and people of China.

Federal ministers Ahad Khan Cheema, Dr Musaddik Malik, Rana Tanveer Hussain, Jam Kamal Khan and relevant senior officers attended the meeting.

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Business

Govt jacks up power price by Rs1.47 per unit

Published

2 days ago

May 17, 2024

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Govt jacks up power price by Rs1.47 per unit

The government on Friday increased the electricity tariff by Rs1.47 per unit.

According to Nepra sources, the collection from consumers will take place in August, September, and October.

The electricity companies had requested the funds as part of the third quarter adjustment for 2023-2024, seeking Rs 31.34 billion under capacity charges.

Sources said that Rs5.57 billion were requested for operation and maintenance costs, and Rs12.38 billion were requested for the transmission and distribution impact under monthly fuel cost adjustment.

Previously, Nepra had completed the hearing on the electricity companies’ request under the quarterly adjustment.

Nepra approved the Power Division’s request, allowing an increase of Rs 1.45 per unit in electricity prices.

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Business

Hong Kong allows China’s digital yuan to be used in local shops

Published

2 days ago

May 17, 2024

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Hong Kong allows China's digital yuan to be used in local shops

Hong Kong will allow mainland China’s pilot digital currency to be used in shops in the city, the head of its de facto central bank said on Friday, marking a step forward for Beijing’s efforts to internationalise the yuan amid rising geopolitical tensions.

The programme, backed by Beijing, will allow mainland Chinese and Hong Kong residents to open digital yuan wallets via a mobile app developed by China’s central bank and will permit them to make payments in retail shops and some online stores in Hong Kong and in mainland China.

Transactions using e-CNY, predominantly for domestic retail payments in China, hit 1.8 trillion yuan ($249.27 billion) as of end of June 2023, with 120 million digital wallets opened, according to the latest disclosure from China’s central bank.

Using the wallet, users can make payments at over 10 million merchants in 17 provinces and cities in the mainland.

Each wallet used in the city will be subject to a balance limit of 10,000 yuan, with single transactions and daily payments capped at 2,000 yuan and 5,000 yuan, respectively, officials from the Hong Kong Monetary Authority said.

Peer-to-peer transfers will not be allowed at the moment, according to the HKMA.

“By expanding the e-CNY pilot in Hong Kong .. users may now top up their wallets anytime, anywhere without having to open a mainland bank account, thereby facilitating merchant payments in the mainland by Hong Kong residents,” HKMA Chief Eddie Yue said.

Currently, users of other digital yuan wallets such as those operated by Ant Group and Tencent can make payments in the city.

Industrial and Commercial Bank of China, Bank of China Ltd, China Construction Bank Corp and Bank of Communications Co have been selected as e-CNY wallet operators.

The yuan’s use in global finance remains low, though it has shown steady increases.

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