Category: Recent Post

The contentious proposal to adopt a ‘weighted average cost of gas’ (WACOG) to reduce the rapid build-up of the circular debt in the gas sector is going to receive a “serious push” soon. “It’s a political hot potato… I’m told that within a few months there’s going to be a serious push on the political side to get (WACOG) through,” said Tabish Gauhar, who recently stepped down as special assistant to the prime minister on power and petroleum. WACOG is the pricing mechanism that takes into account the blended costs…

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The boards of directors (BoDs) of some state-owned power sector companies are flouting corporate governance rules-2013 by indulging in day-to-day affairs required to be handled by the executives under the law. The situation is worst at the National Transmission and Despatch Company (NTDC) — the country’s premier entity handling power evacuation, high-powered transmission lines and grids system. “Most of the executive powers are being used by the boards in NTDC and power distribution companies (Discos) allegedly in violation of the public sector companies (corporate governance) rules, 2013. “Being ex-officio members,…

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The government has decided to shift the headquarters of erstwhile Pakistan Electric Power Company (Pepco) from Lahore to Islamabad with a new nomenclature and fresh roles, but rejected the power division’s request to allow an 88 paisa per unit rise in tariff to meet an annual expenditure of Rs880 million. These decisions were taken at a meeting of the Cabinet Committee on Energy (CCoE) last week, presided over by Planning Minister Asad Umar. The meeting, however, directed that the new and restructured company — Power Planning and Monitoring Company (PPMC)…

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The International Monetary Fund (IMF) has asked Pakistan to withdraw around Rs300 billion sales tax exemptions to qualify for the next loan tranche of $1 billion, taking the demand for the additional revenue requirements to over Rs525 billion. The tax authorities have shown willingness to take back nearly Rs260 billion sales tax exemptions as a quid pro quo for not imposing additional income taxes on the salaried class, government sources told The Express Tribune on Friday. Pakistani negotiators hinted at withdrawing the sales tax exemptions with immediate effect but requested…

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China Three Gorges Group (CTG) called on the Pakistani ambassador to China on Friday and showed keen interest in investing in Pakistan’s wind and solar energy sectors. During the meeting, the CTG delegation led by Vice-Presidents Wang Shaofeng and Qin Guobin informed the Ambassador about the current status of its ongoing power projects in Pakistan. They informed that work on 720 MW Karot Hydropower project was almost complete and it would be commissioned early next year. They are satisfied with the steady pace of hydropower projects. CTG delegation expressed a…

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