Pakistan Secures \$700 Million IFC-World Bank Loan for Reko Diq Project

ISLAMABAD: In a major breakthrough, Pakistan has secured a \$700 million concessional loan from the International Finance Corporation (IFC) and the World Bank for the Reko Diq mining project — a landmark development in the country’s resource sector. The approval, granted during a board meeting in Washington, marks a diplomatic win for Islamabad and a blow to India, which had reportedly lobbied against the financing. The decision is expected to unlock \$2.5 billion in private sector investment for the project, positioning Reko Diq as one of the most significant mineral…

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Pakistan Needs \$100 Billion to Achieve Carbon-Neutral Energy Transition by 2050

Wind-Power

LAHORE: Pakistan is accelerating its shift away from fossil fuels faster than many regional economies, with an ambitious target to generate 60% of its energy from renewable sources by 2030. This transition is part of the country’s broader strategy to cut emissions and combat climate change. According to global data from the Energy Institute, fossil fuels accounted for 81.9% of Pakistan’s total energy consumption in 2023—down from 86.7% in 2019. This 4.8 percentage point drop far outpaces the average decline of 0.8 points seen in other low- and middle-income nations.…

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Oil Industry Warns of \$6bn Investment Risk Over GST Exemption

petroleum-imports

ISLAMABAD: The oil industry has raised alarm over the government’s failure to withdraw the general sales tax (GST) exemption on petroleum products in the Finance Bill 2025, warning that it puts at risk \$6 billion worth of planned investments for refinery upgrades under the Pakistan Brownfield Oil Refining Policy 2023. In a letter to the Ministry of Energy (Petroleum Division), the Chairman of the Oil Companies Advisory Council (OCAC) conveyed the industry’s “deep concern and strong protest” over the continuation of the sales tax exemption, stressing that it threatens business…

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KE Seeks Partial Retention of Rs4.69/Unit Fuel Cost Benefit, Cites Pending Adjustments

K-Electric

ISLAMABAD: K-Electric (KE) has requested the National Electric Power Regulatory Authority (Nepra) not to pass on the full Rs4.69 per unit negative fuel cost adjustment (FCA) for April to consumers. Instead, the utility has sought to retain approximately Rs800 million to offset previously incurred but unadjusted costs. In its petition, KE cited over-recovery of Rs7.2 billion in April due to lower-than-anticipated fuel costs but argued that pending adjustments—including Rs16 billion related to partial load, open cycle and degradation curves, and startup costs from July 2023 to April 2025—justify retention. It…

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Oil & Gas Sector Achieves Key Milestones Amid Renewed Investment: Aurangzeb

oil and gas

ISLAMABAD: Federal Finance Minister Senator Muhammad Aurangzeb announced on Tuesday that Pakistan’s oil and gas sector has witnessed substantial progress in recent years, marked by diversification, regulatory reforms, and growing foreign investment. Delivering the Budget 2025–26 speech, the minister highlighted renewed interest from international firms, particularly Turkish Petroleum, in exploration and production (E\&P) through competitive bidding — a major step forward for the onshore segment after years of stagnation. He also noted the launch of the Pakistan Offshore Exploration Bid Round 2024 — the first in over a decade —…

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