Category: Recent Post

ISLAMABAD: In another positive development, the Chinese authorities have also indicated to Pakistan’s top notches that they would also review the power purchase agreements (PPAs) of the independent power producers (IPPs) installed under China Pakistan Economic Corridor (CPEC) umbrella keeping in view the rising circular debt and other power sector financial woes adversely impacting the country’s economy, a senior top official at Power Division told The News. The official said the coal-based Port Qasim Power Plant, Sahiwal Power Plant, Hubco Power Project, Hub Balochistan, Engro Thar and UEP wind power…

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The Pakistan International Airlines while actively contributing in the Clean and Green Pakistan initiative of the government is planting 50,000 trees in the current year alone across its different stations in the country. This was disclosed by Muhammad Shoaib, company secretary PIA, while speaking at a tree plantation ceremony at PIA Township to mark the 74 Independence Day of Pakistan. The tree plantation ceremony at PIA Model Secondary School was jointly organized by the Federation of Pakistan Chambers of Commerce & Industry, PIA, and National Forum for Environment and Health…

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The Committee for negotiations with Independent Private Power Producers (IPPs), had several rounds of discussions and the IPPs have agreed to alter their existing contractual arrangements to the extent of, and strictly with respect to, the matters listed under a Memorandum of Understanding (“MoU”) signed. The MoU had the following key highlights: • The MoU states that IPPs and government have agreed that savings achieved in oil-based projects will be shared through a sliding scale starting from 70:30 in favor the government for the first 0.5% efficiency improvement above currently…

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The government recently announced successful negotiations with Independent Power Producers (IPP) which can be heralded as a victory for the economy at large. Among other technical points agreed between the Government, and the IPPs, the most crucial point pertains to fixing Return on Equity (RoE) at certain fixed rates. We try to unbundle, and explain in simpler terms, what it all actually means, and how it will benefit the economy. The two key points are: RoE for local investors fixed at 17% with USD-PKR parity of 148, and no indexation…

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LAHORE: Prime Minister Imran Khan on Friday announced that the government has signed a new agreement with the independent power producers (IPPs) whereby the cost of electricity generation would be brought down and circular debt reduced. In a series of tweets, Premier Imran said, “I congratulate the nation because we are fixing the damaging structure we inherited in our power sector.” The IPPs, in the larger national interest under the 1994 and 2002 power policy, have voluntarily agreed to provide concessions, according to an official document available with The Express…

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