Month: November 2024

Revised PPAs Signed with Dozen IPPs as Task Force Pushes for Consumer Relief

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K-Electric to resolve overbilling issues or face legal action

ISLAMABAD: The government’s energy task force, led by Federal Energy Minister Sardar Awais Khan Leghari, has renegotiated Power Purchase Agreements (PPAs) with about a dozen Independent Power Producers (IPPs) established under the 1994 and 2002 Power Policies, according to official sources. The task force, comprising top officials and energy experts, is holding firm negotiations with IPPs to address issues related to excessive profits, historical financial gains, and interest on delayed payments. While some IPPs initially resisted the proposed changes, they eventually agreed after being presented with evidence of irregularities, sources…

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Minister Targets Rs5 Tariff Cut through IPP Reforms, Highlights Reduced DISCO Losses

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Power-sector

ISLAMABAD: Federal Energy Minister Awais Leghari announced significant reforms in the power sector on Friday, including the termination of agreements with Independent Power Producers (IPPs) to reduce electricity tariffs. Speaking at a briefing hosted by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), he revealed that electricity rates could drop by Rs5 per unit following renegotiations with additional IPPs. “Contracts with five IPPs have already been terminated, and agreements with 11 more are underway. We’ve also reached new terms with bagasse-based plants,” Leghari stated. He emphasized the need…

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Pakistan to Import 200,000 Tonnes of Diesel Amid Rising Demand

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petroleum-imports

KARACHI: Pakistan is poised to import over 200,000 metric tonnes (MT) of high-speed diesel (HSD) in December, responding to a surge in demand fueled by increased legal sales and stricter anti-smuggling measures. The Oil and Gas Regulatory Authority (Ogra) has approved imports for four cargoes, with Pakistan State Oil (PSO) securing three under a long-term agreement with Kuwait Petroleum Corporation (KPC) and a private oil marketing company (OMC) managing one independently. Industry insiders suggest that additional imports may be necessary as demand continues to rise. Enhanced anti-smuggling efforts have significantly…

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Government Seeks IMF Flexibility on Gas Supply to Captive Power Plants

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IPPs-Project

ISLAMABAD: The government is navigating a critical challenge under the $7 billion IMF program, which mandates disconnecting Captive Power Plants (CPPs) from the gas supply by January 2025. This structural benchmark, intended to transition industries to grid electricity, has sparked concern among policymakers. In a high-level meeting chaired by Finance Minister Senator Muhammad Aurangzeb, four federal ministers, including those for commerce, petroleum, and power, discussed strategies to address the issue. The meeting concluded with a proposal to seek a six-month extension from the IMF for implementing the benchmark while pursuing…

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Pakistan Secures $500m ADB Loan for Climate Resilience

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SBP-ADB

KARACHI: The State Bank of Pakistan (SBP) has received $500 million from the Asian Development Bank (ADB) under the Climate Change and Disaster Resilience Enhancement Program (CDREP). The inflow, confirmed by the SBP on Friday, will strengthen Pakistan’s foreign exchange reserves. “These funds will be reflected in SBP’s reserves for the week ending November 29, 2024,” the central bank stated, adding that reserves are expected to surpass $12 billion by the end of the month, up from $11.42 billion as of November 22, 2024. The loan agreement with ADB, signed…

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