Year: 2021

The Ministry of Finance may allocate Rs330 billion for power subsidies, which are equal to 60% of the next fiscal year’s estimated needs, sowing the seed for additional Rs220 billion circular debt from the very first day of the new fiscal year. Finance Minister Shaukat Tarin also threw his weight behind a proposal of giving subsidised gas and electricity to five export-oriented sectors under existing mechanisms that will result in undue subsidy payments of about Rs14 billion to Rs17 billion on nearly 35% of the production by 4,000 industrial units…

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ISLAMABAD: The Oil & Gas Regulatory Authority (Ogra) on Thursday directed the Sui gas companies — SNGPL and SSGCL — to immediately allocate pipeline capacities to the sponsors of two upcoming terminal of liquefied natural gas (LNG) for them to proceed with the final investment decision (FID) and financial closure. In a joint letter written to the managing directors of SSGCL, SNGPL and the two LNG terminal developers, Ogra reminded that on Feb 23, 2021, the Cabinet Commi­ttee on Energy (CCoE) had already decided on the issue of pipeline capacity…

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We all know that the main reason for the forced increase in base power tariff is the “tsunami” of expensive and excess power capacity contracted by the previous PML government on “take or pay” basis that has hit the sector hard. The previous government also did not pass on any tariff increase in its last years and left that burden to this government. Due to Covid-19, no increase in base tariff was allowed by the PTI government in 2020 to avoid burdening the consumers (which inevitably added to the circular…

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