What’s Behind the Planned Uzbekistan-Afghanistan-Pakistan Railway?

From the first tracks laid in 1879 at Gyzylarbat, northwest of the capital of modern-day Turkmenistan, locomotive transport has always been central to Central Asia due to the region’s distance from the open sea. Although first set down amid the expansion of the Russian Empire, today, railways have a central role in the economic planning of the Central Asian states, especially in Kyrgyzstan and double-landlocked Uzbekistan. Afghanistan Expansion In Tashkent on February 2, Pakistan, Uzbekistan, and Afghanistan agreed to a roadmap for the building of a 573-kilometer route from Mazar-e-Sharif…

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China’s debt-trap diplomacy: Pak to seek debt relief for power projects

In China’s debt-trap diplomacy, Pakistan is struggling to repay loans for power projects under President Xi Jinping’s Belt and Road Initiative (BRI) and seeks to reschedule as much as USD 22 billion in outstanding credits. In recent years, Chinese loans have fueled a massive buildout of Pakistan’s power generation, financing that has turned a perennial electricity shortfall into a now-massive capacity surplus that the highly indebted nation can increasingly ill-afford, Asia Times reported. In those debt-rescheduling talks, Pakistani officials are also reportedly asking their Chinese counterparts to decelerate agreed plans…

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Nepra cuts rate of return on three nuclear plants

ISLAMABAD: The Natio­nal Electric Power Regula­tory Authority (Nepra) on Wednesday slightly reduced the rate of return on equity (ROE) from 15 to 14.5pc for three old nuclear power plants of 930MW. This would provide a saving of Rs2.05bn per annum or about 25 paisa per unit for remaining 25-37 year life of these projects, the re­­gulator said in a statement. The management of three nuclear power plants loca­ted at Chashma (C-2, C-3 and C-4) had filed the tariff petitions under Aug 27, 2020 decisions of the Cabinet Committee on Energy…

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Circular Debt To Increase Despite A Power Tariff Hike: Mian Zahid Hussain

Karachi (UrduPoint / Pakistan Point News – 24th Feb, 2021) Chairman of National Business Group of FPCCI, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Wednesday said circular debt is increasing despite a hefty hike of 15 percent in the power tariff. He said that remittances are increasing while Foreign Direct Investment is sliding at a rapid pace which should be noted.Mian Zahid Hussain said that according to a study the circular debt increase by Rs436 billion to hit…

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OGDC’s profit falls 20.5pc to Rs42.2bn in 1HFY21

Net profit of the Oil and Gas Development Company Limited (OGDC) declined 20.5pc YoY to Rs42.2 billion during the first half (July-Dec) of the current fiscal year (FY21) as compared to Rs53 billion earned in the corresponding period of the last year, according to financial results announced by OGDC on Wednesday. The company’s earning per share (EPS) reduced to Rs9.82 from Rs12.35. OGDC announced a cash dividend of Rs1.6 per share in addition to interim dividend already paid at Rs2 per share. The decline in OGDCL’s profitability can be attributed…

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Govt Opens Energy Market For Power Generation Companies: Omar Ayub

Pakistan Point News – 24th Feb, 2021 ) :Federal Minister for Power Division Omar Ayub Khan on Wednesday said the government plans to open the energy market for the competitive bidding process to be initiated this year soon after the approval of Indicative Generation Capacity Expansion Plan (IGCEP). Addressing Financial Closure ceremony of 250 MW solar power projects, the minister expressed the hope that with the addition of clean and cheap renewable energy (RE) generation, they would be able to achieve the strategic objectives of affordable electricity for all whereas…

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High global oil prices may trigger Pakistan’s economic crisis

As international oil prices rise rapidly, Pakistan needs to gear up to face the economic challenges that it would trigger. This spike in the global oil prices is likely to result in a surge in inflation, a high import bill and an enlarged fiscal deficit. The international benchmark crude oil Brent was up $1.06, or 1.6%, at $65.30 a barrel by 0204 GMT, after earlier hitting a high of $66.38. US crude rose 81 cents, or 1.4%, to $62.51 a barrel, after hitting a session high of $62.73. Both benchmarks…

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Commercial use of flare gas: Dispute among Ogra members creates stalemate

ISLAMABAD: The disagreement among the Ogra members and its functionaries is pushing the future of flare gas to the danger zone as various sectors of economy, including CNG sector, want to use the commodity knowing the fact the country sustains annual losses of $109.5 million because of failure to use flare gas after its proper treatment. This was stated in a letter by Member Gas on February 11, 2021 to the-then acting chairman (member finance) and member oil. The Member Gas said: “Confusion on the issuance of flare gas licenses…

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Pakistan gets $1.1bn financing to import oil, LNG

ISLAMABAD: With sub-optimal utilisation of earlier $4.5 billion worth of three-year financing framework, Pakistan and the International Islamic Trade Finance Corporation (ITFC) on Wednesday signed a $1.1bn trade financing facility for the current year. Under the Annual Financing Plan, “ITFC will mobilise trade financing of $1.1bn during the year 2021”, said an official statement after the signing ceremony. The financing available through this facility will be utilised by the Pakistan State Oil (PSO), Pak-Arab Refinery Ltd (Parco) and Pakistan LNG Ltd (PLL) for the import of crude oil, refined petroleum…

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Coal accounts for 32pc of total power generation in January

LAHORE: Coal-based power generation in January rose to the seven-month high of 2,560 gigawatt hours (GWh) as total generation from different fuels increased by 3.7 per cent to 8,079 GWh from 7,794 GWh a year ago and by 2.5 per cent from 7,880 GWh from the previous month. Coal power generation in the country peaked at 2,581 GWh in July last year before sliding back to 1,095 GWh in November. As a ratio of total generation in any given month in the last three years since the beginning of 2018,…

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