Epaper_22-07-08 ISB

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friday, 8 July, 2022 i 8 Zil hajj, 1443 i rs 15.00 i Vol Xii no 369 i 12 Pages i islamabad edition

PM Shehbaz inaugurateS green, blue Metro buS Service ISLAMABAD

P

StAff report

RIME Minister Shehbaz Sharif on Thursday inaugurated the Green and Blue lines of the mass transit metro bus service, the first interconnected four-line metro service in the country, terming the step relief for commuters of the twin cities dealing with soaring fuel prices. Addressing the launch, the premier said the service would be a gift to the residents of the twin cities and will serve the common man, students and workers plying on the routes. The service will connect Bhara Kahu, GT Road, Koral and Rawalpindi through the Green, Orange, Blue and Red Lines, respectively. The bus service will run from Bhara Kahu to PIMS (Green Line) and from Koral to PIMS (Blue Line). The two lines will merge with the Red Line and from the Faiz Ahmad Faiz bus stop, passengers can take the Orange line to Islamabad International Airport. The premier remarked that a decent and on-time transportation

service was a service to the common man and lauded the efforts of the interior minister and the chairman of the Capital Development Authority (CDA). He also announced free transportation services to commuters for one month. The premier said the shuttle service from Rawat to Koral was under

consideration and funds would be provided for an early launch. He added that every penny of the national exchequer would be spent judiciously for the uplift of citizens and stressed that every public project is monitored to avoid lapses in delivery. The prime minister said efforts were afoot to control inflation in the

country through short-term relief measures and added that the government would promote solar power generation projects to mitigate the shortage of electricity. Shehbaz also lauded steps taken by the Punjab government to provide free electricity to consumers consuming 100 units and hoped that other provinces would emulate the facility. The prime minister also laid the foundation stone of a command and control centre for metro buses at Bhara Kahu, which is set to be completed in six months. Chairman CDA Amir Ahmed Ali said 30 buses from China had been added to the fleet to facilitate the service. The route from Koral to PIMS saw the addition of 13 bus stations, with a headway of six minutes, he added. The chairman said that eight stations were completed on the Green Line, whereas the remaining six stations would be completed by August 14. A bus depot has also been established at Bhara Kahu to save dead mileage.

ECONOMY TIGHTENED

Monetary Policy at 15% after a 125 bps hike KARACHI AribA ShAhid

The Monetary Policy Committee (MPC) at the State Bank of Pakistan (SBP) has decided to hike the policy rate by 125 basis points bringing it to 15 percent, the highest since 1999. The discount rate is now 16 percent, the highest since July 1998. In addition to hiking the policy rate, the SBP announced that the interest rates on EFS and LTFF loans are now being linked to the policy rate to strengthen monetary policy transmission. The SBP states that this is being done while continuing to incentivize exports by presently offering a discount of 500 basis points relative to the policy rate. This means the rate offered would be 10% based on the current policy rate. At the start of 2022 EFS rate was 3%, while LTFF was at 5% Taking these moves in mind, the SBP is continuing with the tightening cycle underway since September 2021. The SBP claims that this is aimed at ensuring a soft landing of the economy amid an “exceptionally challenging and uncer-

tain global environment.” The MPC also announced that going forward it will remain data-dependent, paying particularly close attention to month-on-month inflation, the evolution of inflation expectations and global commodity prices, as well as developments on the fiscal and external fronts. This has been a demand of the IMF since March 2021. Why hike? “I think this is an IMF-directed decision,” says Fahad Rauf, Head of Research at Ismail Iqbal Securities. He adds, “SBP has probably gone a little bit far with tightening looking at past numbers on different industries. These numbers will be very different in the coming months. The impact of fiscal measures (reversal in energy subsidies) is yet to be reflected in economic indicators.” Rauf adds that there is no forward guidance in the statement. According to him, this implies that the SBP wants to keep the option open for a further hike. Tahir Abbas, Head of Research at Arif Habib Limited says that the SBP acted prudently keeping in mind the expected inflation due to energy and food prices, alongside fiscal adjustments,

Through this contractionary policy, the SBP aims to cool economic activity, prevent the deanchoring of inflation expectations, and provide support to the Rupee in the wake of multi-year high inflation and record imports. The SBP called the reversal of the “unsustainable” energy subsidy package an encouraging development. The statement also noted that the FY23 budget was centered on strong fiscal consolidation. “This has paved the way for the competition of the on-going review by the IMF program, which will ensure that rail risks associated with meeting Pakistan’s external financing needs are averted.” The SBP also stressed the importance of the completion of the ongoing IMF review. It said if completed, it will “catalyze important additional funding from external sources that will ensure that Pakistan’s external financing needs during FY23 are met. Pressures on the Rupee should then attenuate and SBP’s FX reserves should gradually resume their previous upward trajectory during the course of FY23.”

CONTINUED ON PAGE 05

nePra okays rs7.90 per unit hike in Fca for May ISLAMABAD StAff report

The National Electric Power Regulatory Authority (NEPRA) on Thursday approved Rs 7.90 per unit increase in power tariff for May under the monthly fuel cost adjustment (FCA) mechanism. The Central Power Purchasing Agency (CPPA-G) had sought Rs 7.96 per unit increase in the power tariff for the said period. After holding a public hearing on the CPPA’s petition on June 27, NEPRA approved Rs 3.99 per unit increase in the FCA for April and Rs 3.91 per unit more than that of April for May i.e. Rs 7.90, it was notified. The FCA would be applicable to all consumers except lifeline and K-Electric and would be recovered in the billing month of July, the notification said. rs9.52 Per unit hike for ke consuMers The National Electric Power Regulatory Authority (NEPRA) on Thursday notified Rs9.52 per unit increase in power tariff for consumers of K-Electric for May under the monthly fuel cost adjustment (FCA) mechanism. The FCA would be recovered from the consumers in two months, the notification said. The company would recover Rs2.63 per unit increase from the consumer in July while Rs6.89 per unit would be charged from the consumer in August, it further said. The KE had sought Rs11.34 per unit increase in FCA for the period in question. The authority held public hearing on July 4. The increase would be applicable on billing for July and August only. The FCA would be applicable to all categories of KE consumers except lifeline.

Don’t follow ‘illegal’ orders, imran warns Punjab officials SHEIKHUPURA StAff report

Former prime minister and PTI Chairman Imran Khan has warned incumbent government officials against following “illegal” orders of Punjab Chief Minister Hamza Shehbaz ahead of by-polls in 20 constituencies. “The ECP [Election Commission of Pakistan] and Hamza Shehbaz are plotting to rig the elections to ensure the victory of turncoats,” Imran said while addressing a rally in Punjab’s Sheikhupura district on Thursday. The PTI chief’s rally was a part of the campaign for upcoming by-elections scheduled to be held on July 17 on 20 Punjab Assembly seats. He also warned that his party will take legal action against those police officials who allegedly tortured PTI workers during his party’s “Azadi March” in May. Addressing the Punjab police chief and chief secretary, Imran said: “I had appointed both of you, because you were honest and don’t follow the illegal

orders of Hamza.” Terming the by-polls decisive, the ousted premier said the results of elections will decide whether this country would head towards progress or destruction. “No matter what you do you cannot win elections because people have decided that they will not accept ‘imported government,” he remarked. He also alleged that the Punjab government was pouring a large amount of money into the by-elections to ensure the victory of turncoats in the elections. “Take money from them [PML-N} but cast ballot for the PTI,” he told the supporters. Reiterating his allegations of the ‘foreign conspiracy’, Imran said he held only one grudge against the US as to why did it impose ‘thieves’ on Pakistan. “You do not even appoint a corrupt man to the post of peon but here you have imposed a man [Shehbaz Sharif] and his son [Hamza Shehbaz] who are facing serious money laundering charges,” he added. The PTI leader said his political struggle is based on the ideology of coun-

try’s founder Muhammad Ali Jinnah while his opponents are ready to compromise on every issue including being ready to recognise Israel to save their looted wealth. “They can never speak about Pakistan’s interest because their assets are stashed abroad. We want friendship with all countries including the US but will not accept its slavery,” he said, adding, “Likewise, I cannot improve ties with India at the expense of the Kashmir issue.” Imran said the time has changed in the age of social media where it’s impossible to stop the flow of information. “Now you cannot win polls through political victimisation and use of state machinery.” iMran khan says reaDy for negotiations on one-Point agenDa: Former prime minister and Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan has asserted that he was ready for negotiations on the issue of holding early elections. Speaking to journalists during a meeting, the former premier said he was ready to hold talks with anyone if

early elections are guaranteed. “The doors of negotiation are open, but only on general elections,” he added. Imran Khan said that he was concerned about the country’s situation and will continue to raise his voice for the betterment of people of Pakistan.

The PTI Chairman added that he can never see the army becoming weak, while appointment of the army chief had never been his issue. “The only solution to the current crisis in the country is an immediate and transparent election,” he added.


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