Tag Archives: Costs

Market closure costs billions

With complete closure of markets in Karachi on the “mourning call of Muttahida Qaumi Movement (MQM)” the city’s traders who are already going through losses of almost Rs1.5 billion daily, have faced

Financial costs burdening Engro

In 1957, an Esso/Mobil joint venture discovered the Mari Gas field near Dharki, Sindh. Esso proposed the establishment of a urea plant in that area and in 1965, Esso Pakistan Fertiliser Company

CPE costs hamper WiMax growth

The Worldwide Interoperability for Microwave Access (WiMax) operators in the country still have to subsidise the cost of the Customer Premises Equipment (CPE) for every connection they sell, which is hampering their

IPPs’ generation costs rise sharply

KARACHI – After a broad improvement in the first half of FY11 (July to December 2010), Pakistan’s ratio power tariff relative to generation costs has weakened considerably. While higher fuel oil prices and increasing reliance on oil based power generation in the face of a national gas supply shortage, it is estimated that the power cost for state owned WAPDA is presently 31 percent higher than retail tariff in comparison to 15 to16 percent in 1HFY11.
Calculations suggest that

POL exploration costs fall sharply

KARACHI – The exploration cost of Pakistan Oilfields (POL) contracted by 63 percent since the same time last year in the second quarter of FY11 as no established well was declared dry amidst passive drilling activity, while other incomes of the company rose by 35 percent annually during the period owing to healthy dividend income from associated undertakings including NRL and APL.
POL posted a Profit after Tax (PAT) of Rs 2.968 billion (EPS of Rs 12.55) for the second quarter of

One-day strike costs exchequer Rs 5b, say industrialists

KARACHI – Strikes in the country cost national exchequer at least Rs five billion daily, the industrialists told the government and protested against the recent 9.9 percent hike in petroleum products prices. “One-day strike causes Rs five billion revenue loss to the national exchequer, the government should realise this factor,” said SM Muneer, patron in-chief of the Korangi Association of Trade and Industry (KATI).
He was addressing the gathering at the annual dinner 2010

PSO financial costs set to rise

KARACHI – The financial cost of Pakistan State Oil (PSO) is expected to record a rise of nine percent in quarterly terms to Rs 3.25 billion in the second quarter FY11, mainly on account of rising trade payables, which witnessed a six percent in the quarter according to the latest financial data.
However, the company is expected to receive Rs 1.0 billion as interest incurred by Independent Power Producers (IPP) on overdue receivables. PSO is due to release its 1st Half of

Hasty decision to start battery costs PSM millions

KARACHI – The administration of Pakistan Steel Mills (PSM) is incurring an expenditure of Rs 30 million every month in terms of its gas utility bill due to its hasty decision to keep Coke Oven Battery-1 heated at a time when it faces an acute shortage of raw material (coal and iron ore).
The battery was fired by the suspended PSM Chief Executive Officer Imtiaz Lodhi on December 1, 2010, by commencing the pre-heating process of the battery for the production of coke, while he

Long march to Dera Bugti at all costs: Shahzain

ISLAMABAD – Shahzain Bugti, the grandson of Akbar Bugti, has resolved to hold the long march to Dera Bugti on January 28 at every cost. “The masses from all the four provinces will march towards Dera Bugti at all cost,” he said at a crowded press conference. “In a bid to halt the long march, the government implicated me in a false case,” he alleged.
Jamhoori Watan Party leader Nawab Shahzain Bugti presented a three-point formula to stabilize the Balochistan situation. “The

Steel mills face higher costs after Australian floods

SYDNEY – Spot coking coal prices have risen around 10 percent in a month and look set to move sharply higher as Asia’s steel mills scour the globe for new suppliers to cover production lost to Australian floods.
More than two months of torrential rains in Australia’s Queensland state, the world’s largest exporter of coal for steel-making, have left collieries underwater, rail lines inoperable and coal ports running at a trickle – if at all.
Spot prices for coking coal are at