Pakistan State Oil (PSO) has cancelled approximately 400,000 MT of diesel imports since January 2024 in view of surplus high speed diesel (HSD) in the country. “Regarding the surplus of HSD (high speed diesel) in Pakistan, we must emphasise the severity of the recent decline in diesel sales," the company said in a statement. "This isn't a mere fluctuation but a critical issue, as the rampant smuggling of diesel not only undercuts legal sales but also inflates our inventory levels." The company said the situation is causing significant financial strain and sustainability challenges for the entire industry, including refineries and Oil Marketing Companies (OMCs). PSO has been particularly affected, grappling with unprecedented low sales and consequent operational pressures and it is crucial to understand that the current year’s drop-in diesel sales – approximately 30 percent compared to the past two years – is multifaceted, it added. PSO said that compounding these challenges, there has been an unexpected rise in production from local refineries. Whereas the typical production rate hovers around 350,000 metric tonnes monthly, refineries have increased output to roughly 400,000 metric tonnes and are projecting to boost production to 500,000 metric tonnes in the near future. "In a proactive response to this complex scenario, PSO has made strategic decisions to mitigate the impact, including the cancellation of approximately 400,000 metric tonnes of diesel imports since January 2024." “Our import operations are conducted under a long-standing, government-to-government contract with Kuwait Petroleum Corporation (KPC), predicated on biannual demand projections and local production quotas."

SAUDI Arabia is moving closer to a potential deal to acquire a minority stake in the Reko Diq gold and copper mining project. Investment company of Saudi sovereign wealth fund, plans to invest at least $1 billion in the Reko Diq project, controlled by the Canadian mining firm Barrick Gold Corporation. An official announcement to this affect is expected in near future. Deliberations are ongoing, and talks could still fall apart or be delayed.

Two significant milestones were achieved in the restructuring of the Pakistan International Airlines Corporation Limited (PIACL) on 20th and 21st April 2024 as the shareholders and creditors Scheme of Arrangement filed with the Securities and Exchange Commission of Pakistan (SECP). As a part of the privatisation process, the federal cabinet approved legal segregation and restructuring of the PIACL, following which a Scheme of Arrangement (SoA) was filed in SECP on 28th March 2024. As a regulatory requirement by the SECP to restructure the PIACL, the SoA was required to be approved by the shareholders and creditors of the PIACL. The blueprint of the restructuring was presented to the shareholders of the PIACL during the extraordinary general meeting held on 20th April 2024, which was overwhelmingly approved by the shareholders with 99.97 per cent votes cast in favour. Likewise, in the creditor’s meeting of the PIACL creditors held on 21st April 2024, the restructuring plan and SoA were endorsed by the creditors. The restructuring will deliver a significantly debt-lite PIA, with better cash flows, focused on aviation and providing a foundation for future growth to potential investors, while ensuring value creation for shareholders.

For the first time in six years, the number of cellular subscribers in Pakistan has declined even though the penetration of 4G has increased across the country, according to data released. The total cellular subscriptions in Pakistan fell by over 3.7 million during 2023 to close at 190.9m, down 1.9pc from 194.6m in 2022, according to the annual ‘State of Apps’ report for Pakistan, jointly released by Data Darbar, a data and market intelligence platform and UAE streaming platform Begin. As per the report, the dip in the number of cellular subscribers was the “first instance” in at least six years, “and possibly on record”. “This is part of the telecom industry’s conscious drive to get rid of low-value customers and focus on segments with better monetary returns,” the report said, adding that this pivot means companies moving from voice to data subscribers. An indication of this shift was the growth of mobile broadband subscriptions, which rose 7.5pc to 124.4m in FY23. The growth was also supported by the falling price of mobile data, with the average cost of 1GB of data plunged by 71.4pc to Rs32.8, compared to Rs114 in 2018. The overall penetration of broadband — both fixed and mobile connections — increased to 53.6pc in 2023, up from 51pc the year before. The report also showed that the government’s attempts to boost local mobile phone manufacturing failed to yield promising results.

The World Bank will provide a $1 billion loan for the 2,160 megawatts Dasu hydropower project—a crucial initiative aimed at integrating cheaper electricity into Pakistan’s energy mix and showcasing the nation’s resilience against adversaries. This marks the third major financing by the World Bank for the project, which has faced delays and endured at least two terrorist attacks. Government sources disclosed that the Board of Directors of the Washington-based lender is set to approve the $1 billion loan package in June, slightly delayed from the tentative third-week-of-May timeline. China Gezhouba Group Company (CGGC) serves as the contractor for the Dasu Hydropower Project, funded by the World Bank and a consortium of commercial banks. According to a World Bank project document, the lender will extend an additional $1 billion in loans through its International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). This constitutes the third major financing by the lender for the project, which also secured $588.4 million for preparatory works and an additional $700 million for constructing the transmission line to transmit electricity from the project. The World Bank now estimates the project’s total cost at $4.9 billion, a 13% increase from previous estimates of $4.3 billion.

New players are setting their sights on introducing hybrid as well as electric vehicles (EVs) in the country, and one of the largest automakers has announced its entry into Pakistan. The BYD Group of China has recently announced its entry into the passenger vehicle market in Pakistan in collaboration with Mega Conglomerate Pvt Ltd. During a signing ceremony recently held in China, Aly Khan, executive director of Mega, highlighted plans to promote EV adoption in Pakistan.” He stated that three BYD showrooms would be established in Karachi, Lahore, and Islamabad in 2024. The move is expected to accelerate the electrification of Pakistan’s automotive industry, which has largely been based on petroleum fuel.  Meanwhile, a senior official of the Ministry of Industries and Production said that BYD and Mega have not applied for the licence to establish an assembly plant in Pakistan. It is more likely that the company and the local partner would import the vehicles into Pakistan, as other EVs, including some European brands, are being sold in the country. There are several models of EVs and hybrid electric cars in the country, but currently, only the Indus Motor Company is manufacturing a hybrid electric vehicle (HEV).