Month: September 2023

Elites struggle to capture resources

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ISLAMABAD: Pakistan’s elites are engaged in a battle for the capture of resources and power as part of a clientelist patronage state, said British economist Stefan Dercon, on Friday. He emphasised that their motivation does not prioritise economic growth and development in the country. Dercon argued that there is an underlying elite bargain for the status quo among powerful elite groups comprising the leading political class, leading business class, leading individuals in the military, leading figures in civil society, leading members of the civil service, intellectuals, and journalists. The British…

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SIFC sparks Iranian interest

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SIFC-sparks

LAHORE: The Ambassador of Iran, Dr Reza Amiri Moghaddam, on Friday, expressed optimism about two transformative initiatives being undertaken by Pakistan’s government, highlighting their potential for robust economic growth. These initiatives, namely the Special Investment Facilitation Council (SIFC) and the Barter Trade Mechanism (BTM), are beginning to yield promising results. Speaking at the Lahore Chamber of Commerce & Industry (LCCI), alongside Iran’s Consul General in Lahore, Mehran MovahhedFar, Moghaddam emphasised the significance of reducing trade costs, with a particular focus on enhancing transportation to bolster product competitiveness. He underscored the…

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Plants accused of overcharging for low-quality coal

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ISLAMABAD: Shocking revelations emerged during a public hearing on coal pricing mechanisms, indicating that coal power plants in Pakistan are manipulating coal prices by importing lower-quality coal for their operations. In a significant disclosure, it was revealed that the Sahiwal coal power plant had procured coal at a time when coal prices were high and maintained an inventory that was ultimately unused due to merit order. What raised concerns among the authorities was that these power plants were not claiming capacity payments, which should have been recovered from power consumers.…

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Pakistan’s economy on edge of precipice, warns World Bank

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ISLAMABAD: Pakistan is in its tipping point crisis where it should decide to remain a laggard with 40 per cent population living below the poverty line under elite capture and policy decisions driven by strong vested interests of military, political and business leaders or change course to take off for a brighter future. This candid warning came from the World Bank ahead of the new election cycle for the upcoming government to make early choices while making it clear that international lenders and development partners could only advise with international…

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Nepra allows Rs3.28 tariff hike for six months

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Nepra-tariff

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Friday allowed the federal government to increase electricity rates by Rs3.28 per unit for all consumers across the country for six months — October 2023 to March 2024 — with additional revenue impact going beyond Rs200bn. The increase has been allowed under quarterly tariff adjustment (QTA) mechanism to finance the additional impact of capacity charges due to currency devaluation, interest rate hike and other factors. The power division of energy ministry had originally sought Rs6.20 per unit adjustment for the fourth…

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