News about industries being shutdown is commonly heard these days as a result of prevailing situation in the country. On Thursday, Telecom operators also warned to end mobile and internet services due to countrywide power outages as the interruption is causing issues and hindrance in their operations.
Telecom providers also mentioned challenges in keeping cellular towers operational on backup systems running on petrol.
Telecom operators hinted at shutting down phone and broadband services in a combined letter to the Pakistan Telecommunication Authority (PTA) because the government has imposed a 100 percent cash margin requirement on the import of telecom-related equipment.
Shahbaz Sharif warned increased electricity load-shedding in July
On Monday, Prime Minister Shahbaz Sharif warned that the country could experience significant load shedding in July.
He stated that Pakistan could not obtain the requisite quantity of liquefied natural gas (LNG), but that the coalition administration was working to make the transaction viable.
According to Refinitiv statistics, Pakistan’s monthly fuel oil imports are projected to reach a four-year high in June, as the country struggles to obtain liquefied natural gas (LNG) for power generation amid a heatwave that is increasing demand.
Pakistan’s electricity crisis is escalating after it failed to reach an agreement on natural gas supplies for next month. Tenders for July were cancelled due to high costs and insufficient participation since the country is already taking steps to address severe outages.
In fact, Pakistan’s finance minister, Miftah Ismail, stated that the government was considering a new five or ten-year LNG supply agreement for three monthly cargoes, including additional cargo under an existing agreement.
Read more: Petroleum Minister vows to end load-shedding
The issues have arisen because of depletion of foreign exchange reserves caused by Pakistan’s inflation of twin deficits and a lack of foreign currency inflows. In Pakistan, inflation reached double digits in July, the highest level in nearly six years.