Global News

[ad_1] ISLAMABAD: As a tanker operators’ strike disrupts petroleum supply, the Oil Companies Advisory Council (OCAC) has called on the government to swiftly intervene and address the issue. In a letter to the Petroleum Division’s director general oil, the OCAC – a grouping of refineries and oil marketing companies (OMCs), said “on behalf of member companies, it would like to bring to your attention the ongoing strike by oil transporters, which has resulted in significant disruption to operations and the distribution of petroleum products across the country”. At a meeting on Monday, OCAC said, representatives of OMCs provided critical updates on the challenges and issues they were facing at key terminals and depots. Owing to the strike by oil tankers, the supply of oil had been affected at three key depots, it said. Read Missed opportunities of delayed oil refining policy These included the Port Qasim, Korangi and Keamari Terminal, where cargo loading on tank lorries had be...

[ad_1] KARACHI: The State Bank of Pakistan (SBP) is mulling over monetary policy decision this week. The economic contraction is so severe that this entire fiscal year will be marred with economic, social and political chaos. Entire population – educated or not – is either discussing dollar rate or inflationary trends in fuel and food prices. Granted that central bank’s primary job constitutes reining in inflation, but will the expected interest rate hike solve the problems or add to them? Firstly, inflation in Pakistan is not led by excessive demand (demand-pull). Purchasing power is negligible and neither is economy overheating to create shortages or abnormal profits. Domestic inflationary wave is driven by currency depreciation, utility price hikes, global food prices and administrative failures (cost-push). Secondly, inflation is not an outcome of excessive money supply in the country. Surely, exorbitant cash in circulation is not returning back to formal channels with a...