Day: September 6, 2024

NA Informed of Rs296 Billion Net Hydel Profit Payments to Provinces Over 10 Years

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Bhasha-Dam

ISLAMABAD: The National Assembly was informed on Thursday that a total of Rs296 billion has been paid to Khyber-Pakhtunkhwa, Punjab, and Azad Jammu and Kashmir (AJK) in net hydel profit over the last decade. Responding during the question hour, Minister for Water Resources Musadik Malik detailed that Rs216 billion had been paid to Khyber-Pakhtunkhwa, Rs73.45 billion to Punjab, and Rs6.4 billion to AJK. He also noted that outstanding balances amount to Rs36 billion for KP, Rs72 billion for Punjab, and Rs379 million for AJK as of March 2024. Malik explained…

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China Resists Renegotiation of Capacity Tariff for IPPs Amid Pakistan’s $1 Billion Payment Delay

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China-Pakistan

KARACHI: China has shown reluctance to renegotiate the capacity tariff agreements for Chinese Independent Power Producers (IPPs) operating under the China-Pakistan Economic Corridor (CPEC), citing delayed payments from Pakistan. Speaking at an event hosted by the All Pakistan Newspapers Society (APNS), Chinese Ambassador to Pakistan Jiang Zaidong emphasized that the capacity tariff was part of a universal arrangement made by the Pakistani government to support its power sector. Ambassador Jiang revealed that Pakistan has delayed payments amounting to $1 billion to Chinese IPPs, despite Chinese investments of $5.5 billion in…

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Chinese Lenders Agree to Transition IPPs to Daily SOFR, Reject Term SOFR

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power-gride

ISLAMABAD: In ongoing discussions regarding the transition from the London Inter-bank Offered Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR), Chinese lenders financing Independent Power Producers (IPPs) under the China-Pakistan Economic Corridor (CPEC) have agreed to adopt daily SOFR but rejected the Term SOFR option. During a suo motu hearing by the National Electric Power Regulatory Authority (NEPRA), it was revealed that 22 IPPs had yet to submit their responses. NEPRA is reviewing the transition’s impact on consumers and the government. The shift from LIBOR to SOFR was approved…

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Falling Oil Prices to Ease Pakistan’s Import Bill and Strengthen Forex Reserves

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russia-oil

KARACHI: Pakistan’s external economy is benefiting from a 20% drop in global crude oil prices, as the reduced cost helps lower the import bill, build foreign reserves, and enhance the country’s debt repayment capacity. A report by JS Global titled “Oil Price Downturn – A Familiar Safety Net” highlights that global crude prices have fallen by $17 per barrel since April 2024, reaching a 15-month low of $72.9. This decline could allow the government to raise the petroleum development levy by Rs10 per litre to meet its fiscal target of…

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Govt Orders FIRs Against Grid Station Takeovers in KP

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Power genration

ISLAMABAD: After months of cautious restraint, the federal government has decided to initiate legal action against the forced takeovers of grid stations in Khyber Pakhtunkhwa (KP), involving the deployment of Frontier Constabulary (FC) personnel to safeguard power infrastructure. Tensions between the federal PML-N government and KP’s PTI-led administration have escalated since the general election, with the issue being a major point of contention. Sources from the power division revealed that a directive was sent to the Peshawar Electric Supply Company (Pesco), ordering FIRs to be lodged against those responsible for…

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