ISLAMABAD: Pakistan’s electricity consumers face a daunting challenge as capacity payments to independent power producers (IPPs) are set to increase significantly, impacting electricity bills. In the fiscal year 2023/24, capacity payments accounted for 71% of the power purchase price, with energy costs making up the remaining 29%. The burden on consumers was evident, with capacity charges reaching Rs 16.22 per unit compared to Rs 6.73 per unit for energy charges. For the fiscal year 2024/25, capacity payments are projected to surge to Rs 2.8 trillion, up by one-third from Rs…
Read MoreMonth: May 2024
Centre to Sell 15% Stake in Reko Diq Project to Saudi Arabia
ISLAMABAD: In a significant development, Pakistan has agreed to sell a 15% stake in the multibillion-dollar Reko Diq project to a Saudi investor after Barrick Gold Corporation refused to sell its shares. This move will reduce Pakistan’s overall shares in the project from 50% to 35%. Out of the remaining 35%, the Balochistan government’s share will stay at 25%, while the federal government’s State-Owned Enterprises (SOEs) stakes will drop from 25% to 10%, making Pakistan a minority shareholder in the project. A senior government official stated that Pakistan’s experience with…
Read MoreGovernment Diverts Rs70.5 Billion to Hydroelectric Projects
ISLAMABAD: On Thursday, the government approved a major reallocation of funds, diverting Rs70.5 billion from the discretionary budgets of Prime Minister Shehbaz Sharif and parliamentarians towards three key hydroelectric power projects. This decision was made by the Economic Coordination Committee (ECC) of the cabinet, which also approved a supplementary budget of Rs89 billion. A significant portion of this budget, Rs70.5 billion, will finance the construction of the Mohmand Dam, Dasu Hydropower Project, and Tarbela 5th Extension Project. These funds were redirected from various initiatives, including Rs28.8 billion from parliamentarians’ schemes,…
Read MoreUAE President Commits to $10 Billion Investment in Pakistan
ISLAMABAD: United Arab Emirates President Sheikh Mohamed Bin Zayed Al-Nahyan committed to investing $10 billion in various sectors of the Pakistani economy during a meeting with Prime Minister Shehbaz Sharif in Abu Dhabi on Thursday. The announcement came during PM Shehbaz’s day-long visit to the UAE, according to a statement by Pakistan Television on social media. Sheikh Mohamed assured unwavering UAE support and pledged the substantial investment to bolster Pakistan’s economic landscape. PM Shehbaz expressed gratitude for the UAE’s hospitality towards the 1.8 million-strong Pakistani diaspora and highlighted Pakistan’s vast…
Read MoreGovernment Contemplates Incentives to Boost Industrial Power Demand
ISLAMABAD: Facing requests for a 25% annual tariff increase, the government on Thursday signaled plans to introduce an incentive package for the industrial sector as part of broader power sector reforms aimed at reviving electricity demand and fostering economic growth. This development emerged during a public hearing led by National Electric Power Regulatory Authority (Nepra) Chairman Waseem Mukhtar. Representatives from various industrial and consumer groups, particularly from Karachi, expressed concern over the proposed tariff hike, citing its potential to exacerbate economic strain. The hearing focused on a proposed 25% increase…
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