Month: May 2024

Korean Firm Wins Arbitration Case Against NTDC Over Patrind Hydropower Project

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dam-hydro

ISLAMABAD: In a significant legal setback for the Government of Pakistan, the Korean firm Star Hydro Power Limited (SHPL) has triumphed in its case against the National Transmission and Despatch Company (NTDC) in the London Court of International Arbitration (LCIA). The dispute centered on the inclusion of escalated costs in the true-up tariff and NTDC’s failure to evacuate electricity from the 147 MW Patrind Hydropower Project post-commissioning. The LCIA has ruled in favor of the Korean investors, imposing a penalty of Rs690.568 million on NTDC. Additionally, NTDC is required to…

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Pakistan Seeks Extension on $15.36bn Chinese IPPs Debt Amid IMF Review

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china-pak

ISLAMABAD: As an IMF team arrives to assess Pakistan’s debt repayment capabilities, the country is considering a 5-year extension on the $15.36 billion debt owed to Chinese Independent Power Producers (IPPs). This move requires approval from the Chinese government and its IPPs, necessitating extensive negotiations. A top official confirmed to The News that reducing consumer tariffs by Rs1.1 from 2024-2029 and by Rs0.9 from 2030-2040 is being considered, potentially lowering the average tariff by Rs0.18 kWh from 2024 to 2040. Official analyses indicate that extending the debt tenor from 2036-2041…

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OGRA Endorses PSO’s Exchange Rate Adjustment Claim

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OGRA

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has validated Pakistan State Oil’s (PSO) claim for an exchange rate adjustment of Rs1.43 per litre on high-speed diesel (HSD) and 32 paisa per litre on petrol. This adjustment will be incorporated in the petroleum price review for May 16-31. During the first half of May, PSO’s exchange rate adjustment was negative 13 paisa per litre for both petrol and HSD. For the second half of May, PSO claimed an increase of Rs1.43 per litre on HSD and 32 paisa per litre…

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Govt Plans Conversion of Imported Coal-Run Power Plants to Thar Coal

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Power-Plants

ISLAMABAD: The government intends to convert three power plants currently running on imported coal to utilize Thar coal, in collaboration with the Chinese government, according to sources from Business Recorder. Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, who recently visited China, has been tasked with engaging the National Development and Reform Commission of China (NDRC) to facilitate the conversion of CPEC coal projects in Sahiwal, Port Qasim, and Hub to Thar coal. The conversion of the Jamshoro plant and the provision of Thar coal to the Lucky coal…

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Government Proposes Carbon Tax on Fuel to Secure IMF Support

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New-IMF

Insiders say move will facilitate green bonds, cheaper loans from multilateral institutions Withholding tax on bank transactions for non-filers likely to be hiked; carrot-and-stick approach to broaden tax baseFiscal adjustment of Rs1.6 trillion likely through additional revenue measures, privatisation ISLAMABAD: In a bid to secure continued support from the International Monetary Fund (IMF), the government is considering introducing a carbon tax on petroleum and similar products. This move aims to align with the IMF’s push for an integrated general sales tax (GST) and to achieve the benefits of a value-added…

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