Gas prices surge by 850% in four months: PBS

Sugar prices rose by 53.5% and palm oil by 61% in five years, with wheat and crude oil seeing a 35% increase.

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The Pakistan Bureau of Statistics (PBS) has revealed a staggering 850% increase in gas prices over just four months.

During a National Assembly session chaired by Deputy Speaker Ghulam Mustafa Shah, detailed statistics on rising commodity prices were presented, Express News reported.

PBS reported a 53.5% increase in sugar prices and a 61% rise in palm oil prices over the past five years. The prices of soybean oil, wheat, and crude oil have also surged by 35% during the same period.

Officials attributed the overall inflation to price hikes in electricity and gas under the IMF programme. According to PBS, gas tariffs were increased by 520% in November 2023 and an additional 319% in February 2024. Similarly, electricity tariffs rose by 35% in November 2023 and 75% in February 2024.

The PBS further highlighted that the extraordinary increases in electricity and gas prices contributed significantly to the overall inflation in the country.

Additionally, the Ministry of Finance disclosed that mobile phone users were charged PKR 338 billion in taxes over the past five years. Officials presented details of this tax collection to the assembly, revealing that the amount was collected from consumers during the specified period.

Previously Prime Minister Shehbaz Sharif on Saturday, while congratulating the nation, took the credit for a fall in the weekly inflation rate (Sensitive Price Index-SPI).

On Friday, official data had shown that short-term inflation, measured by the Sensitive Price Index (SPI), slowed to 3.57% year-on-year in the week ending Dec 5, owing to a bearish trend in vegetables and pulses.

The SPI-based inflation decelerated for the past two consecutive weeks. It declined by 0.34pc from the previous week, the data showed.

The slight downturn on a week-on-week basis is due to a decline in chicken, pulses and basmati rice prices. However, perishable food products such as potatoes, onions and edible oil continued to rise after relative stability.

ADB approves $200m loan to modernise Pakistan's power distribution sector

The Asian Development Bank (ADB) has approved a $200 million loan to support Pakistan in modernising its power distribution infrastructure and improving the reliability of its electricity supply.

The Power Distribution Strengthening Project aims to enhance the country’s power distribution systems to meet the rising demand for electricity and address key challenges such as energy losses, climate risks, and the resilience of infrastructure.

The project will focus on upgrading the electricity distribution systems, especially in three major companies: Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO). The improvements will help reduce energy losses during transmission and boost the efficiency and sustainability of energy delivery in these areas.

Yevgeniy Zhukov, ADB’s Director General for Central and West Asia, highlighted the importance of reliable electricity in improving the quality of life. He noted that the project would include measures to reduce losses and protect revenue, which would ease the financial pressures on Pakistan's power sector.