Month: April 2024

Energy sector circular debt surges to Rs5.5tr

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power-subsidy

ISLAMABAD: Despite massive repetitive price shocks to consumers and countrywide drive against theft and billing defaults, the World Bank has found power and gas circular debts increasing by an average of Rs135 billion to Rs5.5 trillion (about 5.1pc of GDP) by end-January this year and wants the government to do more to recover true cost of supply. “The government has engaged in comprehensive power sector reforms to contain the accumulation of circular debt, but more needs to be done”, said the World Bank in its latest update on circular debt.…

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Enercap spearheads non-chemical batteries for sustainable energy storage solutions

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energy-storage

Enercap Holdings is pushing the adoption of innovative non-chemical batteries that it has designed to drive sustainable energy storage solutions. Headquartered in Dubai, Enercap has long been at the forefront of technological advancements in the energy industry, and its recent innovations marks a major milestone in the company’s journey towards a more sustainable future. Unlike traditional lithium-ion batteries that rely on chemical processes, Enercap’s non-chemical batteries harness electrostatic energy storage, offering unparalleled performance and efficiency. The batteries feature enhanced performance across all key metrics, including reduced costs, extended lifespans, rapid charging capabilities, improved safety…

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Government’s Special Initiative to Provide Off-Grid Power Solutions to 20 Backward Districts

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solar-panel

Government’s Special Initiative to Provide Off-Grid Power Solutions to 20 Backward Districts The Ministry of Planning, Development, and Special Initiatives has launched the “Special Development Initiative for Poor Districts of Pakistan,” targeting 20 underdeveloped districts across the country. These districts, selected based on high Multidimensional Poverty Index (MPI) scores, span Balochistan, Sindh, Khyber-Pakhtunkhwa, and Punjab. The initiative aims to provide off-grid electrification solutions to these districts as part of a comprehensive approach to uplift underprivileged areas. It includes interventions in physical and digital connectivity, productive sectors, livelihoods, social development, and…

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Local Firms Withdraw Bid for Shell Pakistan as Saudi Group Finalizes Acquisition

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Shell-PLC

After the announcement of a finalized deal between Shell Pakistan Ltd’s parent company and a Saudi Arabian group, local investors have withdrawn their plans to acquire a stake in the company. Pakistan Refinery Ltd (PRL) and Air Link Communication Ltd, two interested local investors, officially communicated their withdrawal to the Pakistan Stock Exchange (PSX), marking the end of their bid for the energy company. Muzaffar Paracha, CEO of Air Link, explained that this withdrawal is a procedural requirement to inform regulators about investment decisions. He mentioned that Shell Petroleum Company…

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World Bank Urges Comprehensive Reforms as Pakistan’s Energy Sector Circular Debt Reaches Rs5.5 Trillion

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circular-debt

Despite efforts to address billing defaults and theft, Pakistan’s power and gas circular debts have surged, reaching Rs5.5 trillion by January, as reported by the World Bank. The bank emphasizes the need for more extensive reforms to align tariffs with the true cost of supply. Structural issues, subsidies, and inefficiencies have led to significant deficits, affecting supply reliability. The World Bank calls for continued tariff reforms to tackle mounting circular debt in the electricity and gas sectors. It notes improvements but highlights that the pace of debt accumulation remains a…

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