Month: August 2024

CPPA-G Seeks Settlement of Rs151bn ‘Irregular’ Payment to KAPCO Audit Para Dispute Arises Over Extended Power Purchase Agreement

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KAPCO-Audit

ISLAMABAD: The Central Power Purchasing Agency–Guaranteed (CPPA-G) has requested the Auditor General to settle an audit para concerning an “irregular payment” of Rs151 billion made to Kot Addu Power Company (KAPCO) due to an unauthorized extension of its Power Purchase Agreement (PPA) without approval from the National Electric Power Regulatory Authority (NEPRA). KAPCO, privatized in 1996, had its original PPA signed on June 27 of the same year, with a 25-year term. However, disputes over liquidated damages (LDs) and delayed payments led to a complex situation, ultimately resolved through negotiations…

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Gas Tariff Hike Spares 66% of Consumers, Says Petroleum Minister Musadik Malik Defends Tiered Pricing System to Manage Circular Debt

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Musadik-Malik

ISLAMABAD: Petroleum Minister Musadik Malik assured that 66 percent of gas consumers remain unaffected by recent tariff hikes, thanks to the tiered pricing system. Addressing a parliamentary committee chaired by Syed Mustafa Mehmood, Malik explained that indiscriminate reductions in gas prices would only worsen the country’s circular debt. He emphasized the importance of maintaining balanced tariffs, noting that targeted subsidies are crucial for managing financial losses while protecting low-income households. During the discussion, Malik also addressed concerns about the management of state-owned petroleum companies, clarifying that three firms have been…

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Coalition Partners Clash Over Punjab-Exclusive Power SubsidySindh, KP Governments Criticize Punjab-Only Relief Package

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Power-sector

PM Defends Punjab’s Autonomy in Funding ReliefEnergy Minister Promises ‘Good News’ on IPPs SoonISLAMABAD: The Punjab government’s exclusive power subsidy has sparked tension among ruling coalition partners, with the PPP and PTI-led provincial governments in Sindh and Khyber Pakhtunkhwa (KP) accusing the PML-N of favoring Punjab over other provinces. The controversy erupted when PML-N President Nawaz Sharif, alongside Punjab Chief Minister Maryam Nawaz, announced a Rs14 per unit relief for Punjab residents consuming between 200 and 500 units of electricity per month. The relief package, funded by a Rs45 billion…

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Sindh CM suggests power supply at reduced rates to industries to increase electricity consumption

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Ali-Shah

Sindh Chief Minister, Syed Murad Ali Shah, has suggested to the federal government that electricity at reduced rates should be supplied to at least one additional shift at factories to ensure greater industrial productivity and increased power consumption in the country.The Sindh CM put forth this suggestion while interacting with a delegation of journalists from Lahore who came to Karachi after visiting Thar.He said the power generation capacity of Pakistan stood at 40,000 megawatts while Pakistan’s current electricity need was 30,000 MWs. He said the concerned power consumers in Pakistan…

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Gas Tariff to Remain Unchanged for Three Months: Musadik Malik

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musadik-malik

ISLAMABAD: Minister for Petroleum Musadik Malik announced on Tuesday that the current gas tariff will stay unchanged for the next three months, covering the crucial winter period. Speaking at a press conference, the minister emphasized that this decision is part of the government’s strategy to ease the financial burden on citizens, assuring that no tariff hikes are planned. He added that any future relief measures would be implemented in collaboration with all provincial governments. Malik also highlighted the Punjab government’s recent relief of Rs14 per unit for electricity consumers using…

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