Month: November 2020

ISLAMABAD: Pakistan will be having a mammoth monetary benefit of Rs10-11 trillion in the next 25-30 years time, once the PTI government succeeds to get the Power Purchase Agreements (PPAs), having capacity to generate 22,000 MW of electricity, amended with material changes in consultation with the IPPs. So far, the government has signed MoUs with 53 IPPs, which will yield dividends of Rs836 billion in the next 10-12 years and if the government further manages to sign MoUs with more IPPs installed under the 2015 power policy, including the ones…

The federal cabinet was briefed that over 2 trillion rupee subsidies, amounting to 4.5 percent of Gross Domestic Product (GDP), were budgeted for the current year. This amount includes grants to different sectors as well as potential losses on account of the energy sector circular debt (estimated at 2.3 trillion rupees at last count), guarantees and non-productive loans. The budget for 2020-21 allocates: (i) 209 billion rupees as total subsidies – an amount that in most fiscal years exceeds the budgeted amount, (ii) grants and transfers of 904 billion rupees…

When it broke earlier this year the ongoing pandemic was thought to stall the ongoing changes in global relations. Some people were hoping that the China’s march towards a leading role in international economy and politics as well as the newly evolving alliance between Russia and China would not be sustainable. But reality was different, the contrast between the dismal handling of the Corona crisis by the US and its efficient handling by China bringing about a fast economic recovery has reinforced the perception towards a shift of economic and…

A new World Bank study launched today suggests that Pakistan should quickly implement a major scale-up of solar and wind generation. The Variable Renewable Energy (VRE) Integration and Planning Study finds that Pakistan needs to urgently implement a major expansion of solar and wind (“variable renewable energy”, or VRE), to achieve a share of at least 30% of total capacity by 2030. This would help lower the cost of power, achieve greater energy security, and reduce greenhouse gas (GHG) emissions. Following an optimal scenario with a major scale-up of VRE would save…