Day: April 11, 2025

Pakistan, World Bank Discuss $400m Investment in Power Transmission, Long-Term Energy Reforms

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world-bank

ISLAMABAD: Pakistan and the World Bank have initiated discussions on a transformative $400 million investment in reactive power compensation as part of a broader 10-year transmission partnership, aiming to revamp the country’s energy infrastructure with sustainable, market-driven reforms. Federal Minister for Power Sardar Awais Khan Leghari, in a meeting with World Bank’s Regional Director for Infrastructure, Pankaj Gupta, outlined the government’s strategy to move away from uniform tariffs and improve transparency through major system upgrades in power distribution and transmission. He reaffirmed Pakistan’s commitment to sustainable energy reforms under a…

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Petroleum Division Raises Concerns Over Rs10 PL Hike on Fuel

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Petrol-Diesel

ISLAMABAD: The Petroleum Division has voiced strong reservations over the recent decision to hike the petroleum levy (PL) on motor spirit (MS) and high-speed diesel (HSD) by Rs10 per litre—raising the total levy to Rs70 per litre—as part of a plan to reduce electricity tariffs. Sources told Business Recorder that the increase, which aims to generate Rs58.6 billion to lower power tariffs by Rs1.71 per unit, is being seen as an unfair burden on the petroleum sector. The Petroleum Division formally conveyed its objections to the Power Division on April…

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Pakistan Commits to Comprehensive Energy Sector Reforms Under IMF Agreement

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New-IMF

ISLAMABAD: The government of Prime Minister Shehbaz Sharif has pledged a wide-ranging overhaul of Pakistan’s energy sector as part of fresh commitments made to the International Monetary Fund (IMF). The reforms aim to address chronic inefficiencies, eliminate circular debt (CD), and reduce fiscal risks through a combination of tariff rationalization, targeted subsidies, and structural changes. Key measures include regular and automatic electricity and gas tariff adjustments, cessation of new subsidies, and converting the circular debt stock into Central Power Purchasing Agency (CPPA-G) liabilities. The plan, developed with the IMF between…

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Govt Approves 30-Year Lease Extension for Engro Vopak LPG Terminal at Port Qasim

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ISLAMABAD: In a significant development, the government has agreed in principle to extend the lease of Engro Vopak Terminal Limited (EVTL) by 30 years, allowing the company to continue operating its liquefied petroleum gas (LPG) and liquid chemical terminal at Port Qasim beyond its current lease term, which ends in 2026. According to sources, the Port Qasim Authority (PQA) signed the second Supplemental Implementation Agreement (SIA) with EVTL on January 15, 2025, and a third SIA followed on February 24, 2025. EVTL submitted its final lease extension proposal on February…

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Oil Industry Seeks Super Tax Abolition, Margin Revision in Budget 2026

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Oil prices

ISLAMABAD:The Oil Companies Advisory Council (OCAC) has urged the government to abolish the super tax and address unresolved tax and margin issues in the upcoming Budget 2026, warning that continued neglect could jeopardize the financial viability of the petroleum sector. In its formal proposals to the Federal Board of Revenue (FBR), OCAC emphasized that the Finance Act 2024’s introduction of sales tax exemptions on petrol, HSD, kerosene, and LDO—previously zero-rated—has led to the accumulation of input tax. Since product prices are state-regulated, companies cannot pass on these costs, adding over…

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