ISLAMABAD: China’s state-owned insurance company, Sinosure, has shown a willingness to implement two major hydropower projects in Pakistan—the 700-MW Azad Pattan Hydropower Project and the 1124-MW Kohala Hydropower Project—following guidance from Beijing, well-informed sources told Business Recorder. Successive Pakistani governments have struggled to commence these vital hydropower projects due to Sinosure’s reluctance, primarily driven by payment issues with existing companies and the substantial circular debt, which currently hovers around Rs 2.6 trillion. Minister for Planning, Development, and Special Initiatives recently raised concerns about the delay in these projects during meetings…
Read MoreMonth: May 2024
Circular Debt Soars to Over Rs2.6 Trillion, Exceeding Government Targets
ISLAMABAD: The circular debt in Pakistan’s power sector has surged to Rs2.636 trillion by the end of January 2024, surpassing the government’s commitment to keep it within Rs2.31 trillion for the fiscal year. According to data from the Power Division of the Ministry of Energy, the circular debt rose by Rs84 billion in January alone, reaching Rs2.636 trillion compared to Rs2.551 trillion in December 2023. Despite multiple tariff hikes through annual base tariffs, quarterly adjustments, and fuel cost adjustments, the debt continues to climb, with a net increase of Rs325…
Read MoreIranian President Ebrahim Raisi Confirmed Dead in Helicopter Crash
TEHRAN: Iranian President Ebrahim Raisi, a prominent hardliner and potential successor to Supreme Leader Ayatollah Ali Khamenei, was confirmed dead in a helicopter crash near the Azerbaijan border, officials and state media reported on Monday. The helicopter, which crashed on Sunday, was carrying Raisi and Foreign Minister Hossein Amirabdollahian. The charred wreckage was discovered early Monday after an overnight search in blizzard conditions. “All passengers, including President Raisi and the foreign minister, perished in the crash,” a senior Iranian official told Reuters, requesting anonymity due to the sensitivity of the…
Read MoreNo Plans to Scrap Solar Net Metering Policy: Energy Minister
LAHORE: Federal Minister for Energy Awais Ahmad Khan Leghari reaffirmed on Sunday that the government has no intention of ending the solar net-metering policy. Addressing media reports that suggested a shift to a gross-metering mechanism, Minister Leghari clarified that the net metering policy, which allows consumers to sell excess electricity generated by their solar systems back to the grid, would remain in place. This policy significantly reduces electricity bills for consumers. In contrast, the proposed gross metering mechanism would require consumers to feed all generated electricity into the national grid…
Read MoreIMF Pressures Pakistan on Power Rates Amid Expected Rupee Devaluation
ISLAMABAD: The International Monetary Fund (IMF) has urged Pakistan to base the next increase in power tariffs on an anticipated further devaluation of the rupee rather than assuming the current stable value of the local currency. This recommendation could exacerbate the already significant burden on electricity consumers, as the government had previously planned a rate hike of up to Rs7 per unit based on a stable exchange rate, according to sources in the Ministry of Energy. During a recent meeting with the National Electric Power Regulatory Authority (NEPRA), the IMF…
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