Category: Shortcode

Unplanned Power Subsidies Threaten Pakistan’s $7bn IMF Bailout

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New-IMF

ISLAMABAD: Punjab’s unexpected power subsidies have become a key obstacle in securing Pakistan’s $7 billion bailout from the International Monetary Fund (IMF). In July, Pakistan reached a Staff-Level Agreement (SLA) for a 37-month, $7bn Extended Fund Facility, but the deal is pending approval from the IMF Executive Board, which has yet to schedule a meeting. Dr. Abid Suleri, Executive Director of the Sustainable Development Policy Institute (SDPI), emphasized the importance of transparency with the IMF regarding the subsidies. Both the federal and Punjab governments’ subsidies could undermine the conditions agreed…

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BMP Criticizes Escalating Power Tariffs, Warns of Economic Consequences

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Power-sector

LAHORE: The Businessmen Panel (BMP) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has condemned the continuous increase in power tariffs under fuel adjustment charges, citing its detrimental impact on production costs and trade. BMP Chairman Mian Anjum Nisar emphasized that these hikes are making electricity unaffordable, potentially fueling power theft. In a meeting held on Sunday, Nisar urged the government to implement solid measures to alleviate the burden on small and medium enterprises (SMEs), including reducing fuel prices, slashing taxes and duties, and offering soft loans…

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Wapda Prepares Strategy for Chashma Lift Canal Construction

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Chashma-Lift

PESHAWAR: The Water and Power Development Authority (Wapda) is formulating a strategy to initiate construction work on the Chashma Lift Canal (CLC) Project, according to Shafiq Khan Betni, General Manager of Wapda North. The update was shared during a meeting with Khyber Pakhtunkhwa Governor Faisal Karim Kundi at the Governor House. The GM announced that a special directorate has been established at the Chashma Right Bank Canal Colony in D.I. Khan to oversee the project. Governor Kundi expressed his optimism, highlighting that the Chashma Lift Canal is crucial not only…

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KOEN Urges Nepra to Uphold Policy Integrity and Set Tariffs for Hydropower Projects

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dam-hydro

ISLAMABAD: Korea-South East Power Company (KOEN) has called on the National Electric Power Regulatory Authority (Nepra) to determine tariffs for its hydropower projects under the Power Generation Policy 2015. KOEN emphasized that the Government of Pakistan (GoP) and its regulatory bodies must maintain the integrity of their policies to attract and retain foreign investment. During a recent Senate Standing Committee on Power meeting, KOEN sought government support for its projects. However, Minister for Power Sardar Awais Leghari and Nepra Chairman Chaudhry Waseem Mukhtar clarified that no new projects would be…

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Task Force Proposes Shift to Take-and-Pay Model for IPPs to Ease Consumer Burden

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power-subsidy

ISLAMABAD: A task force, formed by the prime minister to address capacity payments to Independent Power Producers (IPPs), has proposed transitioning from the current capacity-based payment model to a take-and-pay system. This change aims to relieve electricity consumers from paying for non-operating power plants, sources revealed on Friday. According to insiders, capacity payments currently make up 70% of the total energy costs paid by consumers. Under the existing agreements, consumers must pay for the full capacity of plants, even when they are not generating electricity. This results in an annual…

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