Month: March 2025

Inconsistent Energy Policies Threaten Pakistan’s Economy

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power-sector-in-pakistan

HYDERABAD:* Pakistan’s energy sector is being mismanaged by inexperienced and irresponsible officials, pushing the country’s economy toward crisis, warned Hyderabad Chamber of Small Traders and Small Industry (HCSTSI) President Mohammad Saleem Memon on Tuesday. He criticized the government’s inconsistent and contradictory energy policies, highlighting the introduction of costly independent power producers (IPPs) without a comprehensive strategy. It later emerged that these plants relied on imported oil and coal, making electricity generation excessively expensive. Despite billions of dollars in investments, poor planning has led to soaring circular debt, with the government…

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Lowest Power Production in February 2025: KP Advisor Rejects Federal Govt’s Economic Claims

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Power-sector

PESHAWAR:* Advisor to the *Chief Minister of Khyber Pakhtunkhwa, Muzzammil Aslam, has dismissed the federal government’s assertions of economic improvement, citing alarming trends in *electricity production and industrial output. In a statement issued on *Monday, Aslam highlighted that **Pakistan recorded its lowest electricity production in February 2025, marking the weakest output since **February 2020, when the economy was reeling from *post-COVID-19 impacts. Additionally, the large-scale manufacturing (LSM) sector contracted by 1.8% in the first seven months of the current fiscal year, with January alone witnessing a negative growth of 1.2%.…

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Seven IPPs Seek Tariff Reduction Under Hybrid Take-and-Pay Model

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IPPs

ISLAMABAD:* The National Electric Power Regulatory Authority (Nepra) has admitted a joint tariff reduction application filed by seven Independent Power Producers (IPPs) under the *Power Generation Policy 2002, in collaboration with the **Central Power Purchasing Agency-Guaranteed (CPPA-G). The proposal aligns with agreements made with the *Government’s Task Force on Power Sector Reforms. The seven IPPs seeking tariff adjustments include: The *Task Force, headed by **Federal Minister for Power Sardar Awais Khan Leghari, also includes **SAPM on Power Muhammad Ali, National Coordinator Lt General Muhammad Zafar Iqbal, Chairman Nepra, CEO CPPA-G,…

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PQEPC Warns of Plant Shutdown Over Rs 93.5 Billion Payment Delay

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New-PQEPC

ISLAMABAD:* Port Qasim Electric Power Company (PQEPC) has warned the government of a potential suspension of plant operations due to prolonged payment delays, stating that it could halt production without incurring liquidated damages (LDs) under its Power Purchase Agreement (PPA). The *1320 MW coal-fired plant, a key China-Pakistan Economic Corridor (CPEC) energy project, is among several Chinese-backed power plants facing severe financial strain. Total outstanding receivables for CPEC coal plants *exceed Rs 300 billion (over *$1 billion), hampering dividend payments to shareholders and stalling approvals for *new loans and insurance…

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Pakistan Eyes $8 Trillion Mineral Wealth, Plans Investor Conference

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New-Project51

ISLAMABAD:* The government is ramping up efforts to unlock Pakistan’s vast mineral reserves—now estimated at $8 trillion—by attracting local and foreign investment. To showcase these opportunities, a high-profile mineral conference is planned for next month. At a recent federal cabinet briefing, officials highlighted the significant growth in estimated mineral wealth, up from the previous $6 trillion assessment. Currently, the mineral sector contributes 1% to GDP and employs 300,000 workers. The cabinet was also informed about major mineral deposits and ongoing extraction projects, particularly in Balochistan. Among the key initiatives is…

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