Month: May 2024

Power Sector Debt Surges 14% to Rs2.635 Trillion in 7 Months

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power-sector

ISLAMABAD: The power sector debt surged to Rs2.635 trillion between July 2023 and January 2024, marking a 14 percent increase from the previous year, according to data from the Power Division. At the end of the fiscal year 2022-23 in June, the sector’s total debt stock stood at Rs2.31 trillion. Despite government efforts to retire some debt of Independent Power Producers (IPPs) and raise the power base tariff, the debt grew by Rs46.42 billion (or $166 million) each month. A drive against power theft, championed by the caretaker government, fell…

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PRL Engages Chinese Firms for $1.5 Billion Refinery Upgrade Project

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PRL-Project

KARACHI: Pakistan Refinery Limited (PRL) is advancing its $1.5 billion Refinery Expansion & Upgrade Project (REUP) by engaging Chinese engineering, procurement, and construction (EPC) contractors and financial institutions. The initiative aims to double the refinery’s production capacity and enhance its refining capabilities. Senior management from PRL recently visited China to meet with EPC contractors and financial institutions, laying the groundwork for the project’s next phases. “These discussions were highly productive, laying the groundwork for the forthcoming phases of PRL’s Refinery Expansion & Upgrade Project (REUP),” PRL announced on Tuesday. Earlier…

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OGRA Cuts Gas Prices: 10% Reduction for SNGPL and 4% for SSGC, Effective July 1

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OGRA-GAS

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has announced a reduction in average gas prices for Sui Northern Gas Pipelines Limited (SNGPL) by 10% and Sui Southern Gas Company (SSGC) by 4%, effective from July 1, 2024. After holding hearings on the petitions of these gas utilities, OGRA assessed their estimated revenue requirements (ERRs) and identified surpluses, necessitating a decrease in gas prices to maintain financial stability. The revised provisional prescribed prices are designed to support the financial health of both SNGPL and SSGC while offering relief to consumers.…

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IMF Briefed on Likely Solar Policy Changes

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Solar-Policy

ISLAMABAD: The Power Division informed the visiting IMF mission that electric power consumers pay an annual Rs800 billion in taxes through electricity bills, leading to an Rs8 per unit increase. Removing these taxes could reduce the tariff by Rs8 per unit. Consumers also pay electricity duty, PTV fees, and surcharges. Officials suggested reducing the taxation burden by Rs100-200 billion annually, providing relief of Rs1-2 per unit. However, the 17% General Sales Tax (GST), contributing Rs600 billion to government revenue, cannot be removed. Other taxes, totaling Rs100-200 billion, could be eliminated.…

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Govt to Replace Independent Directors in Power Distribution Companies

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power-project

ISLAMABAD: The federal government has deemed the performance of independent directors in power distribution companies (Discos) unsatisfactory and has decided to replace them. The federal cabinet will soon approve these changes. Prime Minister Shehbaz Sharif has approved the summary for appointing new board members for nine out of eleven government electricity distribution companies, excluding Sepco and Hesco. The new appointments are as follows: Fesco: Imran Zafar (Chairman), Zoi Khurshid Khan, Engineer Parveza Qabal, Umar Farooq Khan.Gepco: Tahir Masood (Chairman), Imran Zafar, Zoi Khurshid Khan, Ilyas Ahmed, Muhammad Siddique.Lesco: Aamir Zia,…

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