Month: July 2024

Islamabad Weighs LNG Pipeline Deal with Moscow Amid Sanctions Concerns

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lng-usa

ISLAMABAD: Pakistan is exploring options to finalize a multi-billion-dollar liquefied natural gas (LNG) pipeline deal with Russia, aiming to meet its urgent energy needs. This deal, however, hinges on Pakistan finding a way to avoid US sanctions. In a significant meeting at the recent SCO summit, Russian President Vladimir Putin proposed to Prime Minister Shehbaz Sharif the construction of an LNG pipeline running from Russia through Iran to Pakistan, and potentially extending to India. Minister for Petroleum Musadik Malik has been tasked with conducting a feasibility study, factoring in the…

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KATI Demands Electricity Rate Cut to 9 Cents per kWh

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Power genration

KARACHI: Johar Qandhari, President of the Korangi Association of Trade and Industry (KATI), has raised concerns over the recent hikes in electricity and gas charges, emphasizing that these increases have made it financially untenable for industries to sustain production and business activities. Qandhari urged the government to reduce electricity rates to 9 cents per kilowatt-hour and to lower interest rates to 12 percent. He argued that these measures would spur economic growth, enhance exports, attract investment, and generate employment opportunities. He also called on the government to procure power from…

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FESCO Strives to Offset High Electricity Costs with Improved Services and Reliability

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power-gride

FAISALABAD: Faisalabad Electric Supply Company (FESCO) is making concerted efforts to mitigate the impact of high electricity costs on consumers by providing top-notch services, minimizing line losses, and ensuring an uninterrupted power supply, according to Engineer Muhammad Aamir, CEO of FESCO. Addressing the industrialists and business community at the Faisalabad Chamber of Commerce and Industry (FCCI), Aamir emphasized FESCO’s commitment to efficient electricity distribution and accurate billing. He assured that best practices are being employed to eliminate over-billing, and meter readers are required to record actual readings. Aamir highlighted the…

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Energy Sector and SOEs Undergo Reforms, Finance Minister Meets S&P Global Delegation

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power-subsidy

ISLAMABAD: Minister for Finance and Revenue Muhammad Aurangzeb on Wednesday highlighted significant reforms in Pakistan’s energy sector and state-owned enterprises (SOEs), including ongoing privatization efforts of state companies. During a meeting with a delegation from Standard & Poor’s (S&P) Global Ratings at the Finance Division, Aurangzeb emphasized the confidence multilateral institutions have shown through financing various projects in Pakistan. The S&P delegation was led by Directors of Sovereign and International Public Finance Ratings, Yee Farn Phua and Andrew David Wood. Aurangzeb provided an update on Pakistan’s current economic situation, noting…

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Hidden Costs Drive Power Prices Up 70%

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Your-Bill

KARACHI: A recent study reveals that domestic households and businesses in Pakistan face unexpected hidden costs in their power tariffs, including US inflation and interest on circular debt. These factors significantly increase power prices for end-users, making electricity unaffordable and prompting calls for the government to renegotiate power purchase agreements (PPA) with power plant operators. Independent power producers (IPPs) charge monthly bills in US dollars under US dollar indexation, shielding them from rupee depreciation and local inflation. However, this leaves no justification for additional US inflation charges on Pakistani consumers.…

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