Pakistan’s foreign exchange reserves swell to $ 18.2 billion

[SBD-3]

i am simply quoting prices that matter..i.e prices offered by NEPRA.
NEPRA offers 7.8 cents for coal vs around 11.2 cents for LNG

(not final, preliminary at rate of 12 rs LNG which was the price of LNG after all cost of imports and 15% taxes, though later on govt revised the price to around 13rs, so NEPRA is working out the newer price).

.....::::NEPRA::::....
remember there other issues rather than mere spot prices in pricing LNG, prices varies at different areas its not simple, i also dont know whom prices are you quoting here. also return rates on power plants matters

The documents say that the tarrif rates are dependent upon
1-Plant size
2-Source of Financing
3-Plant Factor or efficiency
4-Source of Fuel
5-Price of Fuel

Oh yes, to know the source of prices, click the Hyperlinks.

 

[I M Sikander]

Use this, you might get feel better.

 

[ziaulislam]

The documents say that the tarrif rates are dependent upon
1-Plant size
2-Source of Financing
3-Plant Factor or efficiency
4-Source of Fuel
5-Price of Fuel
View attachment 232729 View attachment 232730

Oh yes, to know the source of prices, click the Hyperlinks.

ok let me correct my self for 900mw plant 20 years 60% plant factor its from its from 10.32-11.12 cents.

sorry for just quoting 11.12 cents in my original post(this is for local financing, 60% plant factor, the most common case)

If you had read all document you would have known that price of 12MTBU is also not expected by NEPRA.
it thinks that price will go up. the recent LNG shipment was at 12$, even though the cost for LNG is around 9$ , we have to pay 90 cents for terminal, another 90 cents for transport and 15 % taxes in addition to gas utility and transport charges.

in short even if oil prices dont go up, which it will eventually the price of coal will be cheaper.

even if oil prices go down , coal will be adjusted to go down too.

with affordibility the main problem and high natural gas mix(nearly 60%) we need to focus on coal rather than LNG power plants

 

[Rank]

That is because Euro has been weakening, putting a strain on the earnings and competitiveness of Pakistani exporters.

LOL always talk without facts.... kid last fiscal year, Export reduced because this tatoo ganja increased tax on the export and similarly on the import. aween shuru na hojaya karoo har time chawalain maarnay...

 

[SBD-3]

LOL always talk without facts.... kid last fiscal year, Export reduced because this tatoo ganja increased tax on the export and similarly on the import. aween shuru na hojaya karoo har time chawalain maarnay...

Increased which tax on exports?

 

[Viper0011.]

with affordibility the main problem and high natural gas mix(nearly 60%) we need to focus on coal rather than LNG power plants

Incorrect actually. You need to focus on putting electricity back inside your country that comes with a cost effective solution and speed. Not necessarily the cheapest solution and not necessarily the most expensive either. When the business start to work, economy goes up, income goes up, people would be able to afford slightly heavier price, IF it can bring in the electricity much quicker than a comparable means. Pakistan needs the electric to grow, if you were a growing economy with a running electrical system, THEN you can look into options as you'd have plenty of money. Right now, the economy's wheel needs to turn around and people dying need not to die because of the lack of power. Pakistan doesn't have time for options, its time for "affordable" action.

Pakistan’s foreign exchange reserves swell to $ 18.2 billion

@Horus, @rockstar08, @WAJsal, @Junaid B, @Pomegranate, @Color_Less_Sky, @Zarvan, @xyxmt, @SipahSalar, @Bratva, @Stealth, @Rashid Mahmood,
@syedali73, @Leader, @DESERT FIGHTER, @Jazzbot, @Spring Onion, @chauvunist,
@Pakistan Shaheen, @karakoram, @syedali73, @rockstar08, @haviZsultan, @Gufi @Muhammad Omar, @graphican, @Gazi, @Donatello, @Hyperion, @Pak_Sher, @Sage,

@Shamain @Azad-Kashmiri

I've been predicting this for a long time. By the end of this year, you'd be around 21 billion dollars in foreign exchange reserves. By 2020, Pakistan is expected to have around $ 45-50 billion in Forex reserves, turning the country into an officially faster growing economies around the globe. The opening of the trade corridor will further speed up the additions of a few billion every year into currency reserves and increased tax base and expanding economy would help too. Good work by the current government!!!

 

[Rank]

Increased which tax on exports?

Not only on export but also max % sales tax on the manufacturer ... jahan cheez 10 rupay ke ban sakhti hey woh 20 ke ban kar market may jab 30 yaan 40 ki ati hey tu buyer Pakistani product choor kar Indian, Bangladeshi & Chinese product ko prefer karta hey.... Export pe duty koi nahe hey export item pe hey jo manufacturer banata hey.... use pe itne ziada hey kay without export duty if suppose zero b kardi jaye tab b cheez jo dunya 10 ke baech rahi hey hamara manufacturer woh ghar may 20 ki bana kar bahir lay kar ja raha hey...

Also manufacturers facing massive issue because of 6 mahenay aur phir 1 saal aur phir 1.5 saal aur phir 2 saal aur ub 2017 wali bijli....

PMLN Govt increased double tax on equipment import last year on every sector especially telecom, automobile and cloths manufacturer jo kay PAkistan ke bachi kuchi rah gaye hey.... what you expect kay kya 10GDP hogi asi harkatoon sa... yaan reserves increase hoongay ? big no.... all the stats indicators going towards down.. bas haram ka sood laga paisa bahir say laykar ye kahdena kamaal hogaya hey in reality completely different situation... huge huge difference btw the statements of Ishaq Dubai Dar and State Bank of Pakistan from Economic Survey to everything.

For Example: The Federal Board of Revenue (FBR) has abolished sales tax, customs duty and withholding tax on the import of potatoes and imposed 25 percent regulatory duty on its export during May 5-July 31, 2014.

Exporters threaten countrywide shutterdown on new taxes

2015-2016 budget proposals, has sought to impose a uniform rate of 5pc Sales Tax on all export-oriented industries by amending the concessionary regime under the SRO.

 

[AZADPAKISTAN2009]

Check Zardari's pajama , 2 billion to uss main se nikle ga

The trade openings have lifted Pakistani trade but long way to go nation should have 50-100 billion reserves

 

[Hyde]

ok let me correct my self for 900mw plant 20 years 60% plant factor its from its from 10.32-11.12 cents.

sorry for just quoting 11.12 cents in my original post(this is for local financing, 60% plant factor, the most common case)

If you had read all document you would have known that price of 12MTBU is also not expected by NEPRA.
it thinks that price will go up. the recent LNG shipment was at 12$, even though the cost for LNG is around 9$ , we have to pay 90 cents for terminal, another 90 cents for transport and 15 % taxes in addition to gas utility and transport charges.

in short even if oil prices dont go up, which it will eventually the price of coal will be cheaper.

even if oil prices go down , coal will be adjusted to go down too.

with affordibility the main problem and high natural gas mix(nearly 60%) we need to focus on coal rather than LNG power plants

The only sensible agreement by the government would have been the persistence of Iran-Pakistan gas pipeline, if we set aside the consequences factor for a moment. I totally with you about the LNG, Diesel and Thermal power plants should be discarded from Government's manifesto of energy mix.

All they need to focus is Coal and Hydro power projects for the time being. The benefit of coal is, if the prices of coal rises in future, we have the option of utilising domestic coal. The prices of coal are most unlikely to rise ever again due to discouraging factor by most of the world. But if the prices of Crude Oil or Gas rises, we will be haunted by rising circular debt and import bill once again.

Nuclear energy is a bonus and we must try to build as many reactors as possible. The Solar and Hydro is still very expensive and should be encouraged on private sector only.

 

[SBD-3]

For Example: The Federal Board of Revenue (FBR) has abolished sales tax, customs duty and withholding tax on the import of potatoes and imposed 25 percent regulatory duty on its export during May 5-July 31, 2014.

Exporters threaten countrywide shutterdown on new taxes

2015-2016 budget proposals, has sought to impose a uniform rate of 5pc Sales Tax on all export-oriented industries by amending the concessionary regime under the SRO.

Potatoes? How much potatoes does Pakistan import and export? Pakistani potatoes and vegitables are dominantly traded with India and such measures are introduced when vegitable prices i.e. potatoes,tomatoes etc are high due to seasonal effects

KARACHI: The government decisions of allowing duty-free import of potato and imposition of 25 per cent regulatory duty on its exports have so far failed to bring down its retail prices.
No relief in prices of potato - Newspaper - DAWN.COM

The export oriented industries, at the moment, fall under zero-rated regime rather than exemption regime, which means that in addition to paying no taxes, they are also entitled to claim sales tax paid on input (17%-20%). Alongside ERF and LTTF which are providing highly subsidized funding (7-8%,10%). The exporters cause a negative flow to exchequer while using bogus invoices to inflate input tax and hence the refund based on zero rating system.

 

[Arsalan]

Question is, will they?


Are we losing sales to bangladesh?

We are, specially in the garments side which form the major portion of textiles, Pakistan share is more in home textiles now and we have lost the garments market to Bangladesh, Thailand!!

I think anyone with economic background would be able to understand that what are the consequences of erosion of competitiveness of export oriented industry.

Yes the would have but also would have considered about it is the decline was a general trend in our rival industries. That is not the case unfortunately. We have lost a MAJOR share of textile market in form of garments line and that is a major cause of decline in exports. The other factor no doubt is the slow international economy and decline in buying. These both are contributing.

LNG is a multipurpose fuel
1-It will be used as a replacement of CNG
2-It will be used as an input in fertilizer generation
3-It will be used for power generation.
4-It will be used as a fuel by glass industry.
4-It would ultimately be used for household consumption.
Pakistan's domestic natural gas reserves are severely constrained at the moment.

And other fuel sources are NOT multipurpose? Natural gas reserves contained? We have found more reserves in past 10 15 years than we found in the previous 50!

I wont go into WHY the government is so committed to go for LNG, the results will be here for all of us to see in three four years, ONLY!
If done properly it surely is a good alternative and perhaps an excellent solution.

Circular debt can be resolved to a greater if there is a political will. Cut the electricity to feeders with low payment and high losses like K-Electric does in Karachi. But if government does so next day we will start hearing statements,"Hamary subay kay sath ziadti ho rahi hay" etc

Should go for it, screw anyone making unnecessary noises, we should not care about such people. Government must go for more return based distribution scheme , however, must do it sincerely!

Anyway, lets stay on topic, the foreign exchange reserves have increased, even if these are courtesy of loans, it still is good news. Previous government with all there loans were not able to reach this mark. It will however be great if government can share the details with its people and make public the exact reserves that we have earned by business or investment and those that are loans.

 

[saurav]

Good Job... However it will be interesting to know how this was achieved. I hope privatization of PSUs and loans did not contribute a lot in this. Not that this matters much in short run.

 

[AZADPAKISTAN2009]

18 Billion is good figure however for Us we need to get it to 100 Billion reserves , based on the agricultural power in country

 

[hellraider]

No need to worry. China is giving USD 46 billion in CPEC.

 

[Muhammad Omar]

No need to worry. China is giving USD 46 billion in CPEC.

The topic is about Reserves not Investment.... Don't Brain fart in Every thread.....

Ain't Funny...