Mandatory cybersecurity audits for telecom, energy sector
In a crucial move towards enhancing cybersecurity and protecting national data from potential theft, the Pakistan Telecommunication Authority (PTA) has authorised 22 companies to conduct mandatory cybersecurity audits for telecom and power companies, according to Malahat Obaid, Director of Public Relations at PTA. Emphasising the significance of indigenisation, PTA Director General of Cyber Vigilance, Dr Muhammad Mukaram Khan, said that “Cybersecurity is something that cannot be outsourced” while speaking at the fifteenth international conference on Information Security 2023.
PTA has introduced a comprehensive audit regime, making it mandatory for all telecom operators to conduct third-party cybersecurity audits.
Rs15 radio fee may be added to energy bills
Amidst the ever-increasing inflation and soaring power and gas rates, the government has decided to impose an additional burden on the masses by levying an extra Rs15 as a radio fee on their monthly electricity bills.
The revelation came to light during a meeting of the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla at the Parliament House on Thursday.
Officials from the Ministry of Finance disclosed that the federal government aims to address the financial crisis faced by Radio Pakistan by imposing supplementary charges on electricity consumers.
According to the finance ministry officials, consumers will be charged Rs35 as a TV fee and an additional Rs15 as a radio fee. The revenue collected from users will be utilized to pay the salaries of Radio Pakistan employees.
Forex doubles to 9-month high at $8.73 bn
Pakistan’s foreign exchange reserves doubled, reaching a nine-month high of $8.73 billion, thanks to new debt-financing inflows from the International Monetary Fund (IMF) and friendly countries like Saudi Arabia and UAE. This influx of funds has improved the country’s import capacity to two months, a significant improvement from the critically low one-month level it was at before the IMF awarded a new short-term loan programme worth $3 billion in late June 2023.
The rupee-dollar exchange rate spread between the interbank and open markets has also narrowed down close to the IMF directed level of Rs4. The value of the currency dropped in the former market but rose in the latter on Thursday.
The State Bank of Pakistan (SBP) reported a 93 percent surge in the country’s reserves, bringing it to $8.73 billion after the IMF disbursed the first loan tranche of $1.2 billion, while Saudi Arabia deposited another $2 billion and the UAE provided a fresh loan of $1 billion last week.
Nepra increases energy rates by Rs1.90/unit
The National Electric Power Regulatory Authority (Nepra), on Thursday, has issued a notification for another increase in electricity rates, raising it by Rs1.90 per unit on account of fuel adjustment for the month of May 2023. The power regulator reviewed and assessed a National Average Uniform increase of Rs.1.9039/kWh in the applicable tariff for XWDISCOs, taking into account the variations in fuel charges during May 2023.
The increase comes after the Central Power Purchasing Agency (CPPA) demanded to raise power tariffs by Rs2.05 per unit. However, Nepra approved a slightly lower increase of Rs1.90 per unit.
The impact of this tariff hike will be reflected in the electricity bills of the ongoing month, July 2023.
CPPA-G has purchased energy of 34.499 GWh from Tavanir Iran in May 2023, incurring a cost of Rs811.6 million.
K-Electric granted provisional license extension
In a significant move, the National Electric Power Regulatory Authority (Nepra) has granted a six-month extension to K-Electric Limited (KE) for its distribution license on a provisional basis. This step has been taken to guarantee uninterrupted power supply to Karachi, one of Pakistan’s largest and most populous cities.
KE submitted an application for the renewal/extension of its Distribution License on December 1, 2022. The power regulator had previously granted KE the exclusive Distribution License, empowering the utility to provide distribution services, sell electric power, implement schemes, and engage in incidental activities in the Service and Concessional Territories on a non-discriminatory basis.
Business community concerned over rupee depreciation
Despite receiving a $5 billion inflow before the State Bank of Pakistan (SBP), the value of the rupee continues to depreciate, causing uncertainty in the market. The Pakistan Business Forum (PBF) and industry leaders express concern over the ongoing rupee depreciation and its detrimental effects on the economy.
PBF Central Vice President, Ahmad Jawad questioned the free float exchange rate, asserting that it is merely a myth and not connected to inflows. He believes that weakening a nation’s currency is a straightforward way to destabilise it.
Jawad pointed out that economic problems, including the government’s spending plan deficiency, soaring food inflation, and massive public and energy sector debts, are compounding financial hardships.
PTCL group records loss over debt repayment
The Pakistan Telecommunication Company Limited (PTCL) Group posted record revenue of Rs90.9 billion for six months ended June 30, 2023, which was 26.8 percent higher compared to the same period of previous year.
While PTCL and Ubank made substantial profits in January-June 2023, the third entity in the group, Ufone, continued to post negative growth primarily due to the low returns received by the mobile telecom industry and high loans.
The results were unveiled by PTCL Group Chief Financial Officer Naveed Khan after a meeting of board of directors in Islamabad on Wednesday.
Despite making huge profits, the group registered a net loss of Rs8.5 billion, caused mainly by debt retirement from Ufone.