Day: October 1, 2024

Leghari Warns Discos of Action Over Inefficiency

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Awais-Leghari

ISLAMABAD: Federal Minister for Power Awais Ahmad Khan Leghari has expressed serious concerns over the poor performance of power distribution companies (Discos) and announced plans for strict administrative actions against underperforming management. In a meeting with board chairpersons and CEOs of Discos, Leghari reviewed the companies’ line losses and bill collection performance for July and August 2024. The Power Division released a statement highlighting dissatisfaction with the management of certain Discos, signaling that administrative measures would follow. Leghari urged companies to adopt proactive strategies to reduce line losses and improve…

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Dar Urges Ogra to Plan $2 per mmBtu Cut in RLNG Tariff

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Pakistan-LNG

ISLAMABAD: Deputy Prime Minister Senator Ishaq Dar, leading the task force on gas-related issues, has directed authorities to initiate plans to reduce margins, taxes, duties, and port charges on imported LNG by 50%, aiming to make re-gasified LNG (RLNG) more affordable for consumers. Currently, the landed cost of LNG is $10 per mmBtu, but this rises to $14 per mmBtu once various additional costs are applied. Dar urged the Oil and Gas Regulatory Authority (Ogra) to work with the petroleum division to cut these charges from $4 to $2 per…

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Govt Power Plants to Receive Rs1,069bn in Capacity Payments in FY25

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Power-sector

ISLAMABAD: In FY25, power consumers will bear capacity payments amounting to Rs2,140 billion, with government power plants claiming the largest share of Rs1,069 billion, according to recent data. A significant portion of this will be allocated to nuclear power plants (Rs466 billion), hydropower projects (Rs446 billion), RLNG plants (Rs161 billion), and GENCOs (Rs16 billion). Meanwhile, power plants established under the China-Pakistan Economic Corridor (CPEC) will receive Rs707 billion. The 23 Independent Power Producers (IPPs) set up under the 1994 and 2002 power policies will get Rs165 billion collectively, with their…

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Ministry Opposes Solarisation of Tubewells in Balochistan Amid Groundwater Crisis

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solarisation-project

ISLAMABAD: The Ministry of Water Resources has opposed the solarisation of agricultural tubewells in Balochistan, citing the severe depletion of groundwater levels in the province. This stance was presented during a Senate Standing Committee on Water Resources meeting chaired by Senator Shahadat Awan. Secretary of Water Resources, Syed Ali Murtaza, warned that installing solar panels to power tubewells would exacerbate the already critical water crisis in the region. He stressed that halting further solarisation is the only viable solution, as no engineering remedy can resolve the depleting groundwater issue. This…

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SHC Rules K-Electric’s Subsidy and Fuel Cost as Part of Turnover for Minimum Tax

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K-Electric

ISLAMABAD: The Sindh High Court (SHC) ruled on Monday that the subsidy and fuel cost recovered by K-Electric from consumers must be treated as part of its turnover for calculating minimum tax under Section 113 of the Income Tax Ordinance 2001. The judgment came in response to appeals filed by the Revenue Department challenging the Appellate Tribunal Inland Revenue’s decision to exclude government-provided subsidies from K-Electric’s turnover. The SHC ruled in favor of the Revenue Department, stating that both the fuel cost and subsidy adjustments receivable from the government are…

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