Category: Shortcode

Tax Breaks for IPPs Reach Rs1.2 Trillion Since 1990, Sparking Concerns

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power-energy

ISLAMABAD: Amid rising tax pressures on the general public, it has been revealed that Independent Power Producers (IPPs) have benefited from substantial tax exemptions amounting to Rs1.217 trillion from the mid-1990s through the 2023-24 fiscal year, according to official sources. These tax breaks, in addition to capacity payments estimated to reach Rs2.091 trillion this fiscal year, have sparked debate. The IPPs, owned by about 40 influential families with connections to political power, enjoy corporate tax exemptions on profits and gains from electric power plants established since July 1, 1988. Over…

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Government Poised to Redefine Load-Shedding Amid Revenue-Based Concerns

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load-shedding

ISLAMABAD: The government is preparing to redefine electricity load-shedding by amending the Nepra Act and Performance Standards, aiming to legalize revenue-based load-shedding across the country under the guise of Aggregate Technical and Commercial (AT&C) losses. This move, long sought by the Power Division, risks depriving the poorest citizens of their fundamental right to electricity. The Power Division has cited increasing circular debt, massive line losses, low recovery rates, and electricity theft as key factors contributing to the sector’s financial instability. Revenue-based load-shedding is already implemented in areas with high line…

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Former Minister Criticizes Sharp Rise in Power Tariffs

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electricity-tariffs

Dr. Gohar Ejaz, former caretaker commerce minister, has expressed deep concerns over the sharp increase in electricity tariffs, questioning the significant disparity between the production cost and the charges billed to consumers. In a recent tweet, Dr. Ejaz revealed that the production cost of electricity in July was only Rs. 9.03 per unit, yet consumers are being charged rates as high as Rs. 80 per unit. He noted that in July, Pakistan’s total average electricity generation was 20,000 megawatts, with 35%—or 7,000 megawatts—generated from cost-effective hydropower sources. Dr. Ejaz attributed…

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Power Subsidy in Punjab Raises Concerns Over IMF Scrutiny

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IMF-board

The Punjab government’s recent decision to provide a Rs. 14 per unit subsidy on electricity bills for consumers using 201 to 500 units per month has sparked concerns about its sustainability and potential scrutiny from the International Monetary Fund (IMF). This relief measure, amounting to Rs. 45 billion, is intended to ease the financial burden on consumers during the peak summer months but is set to expire after September. While experts view the move as a positive step to help middle-class households struggling with high electricity bills, questions remain about…

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PM Vows to Tackle Corruption in Power Sector, Orders Crackdown on Electricity Theft

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Power-Projects

ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday issued strict directives to combat corruption within the power sector, particularly targeting dishonest practices in distribution companies (Discos). During a high-level meeting to review the power ministry’s performance, the Prime Minister reaffirmed his government’s commitment to curbing electricity theft, reducing line losses, and enhancing the power distribution system nationwide. Highlighting recent efforts to bolster transparency, PM Shehbaz noted the appointment of new board chairpersons and members in five distribution companies through a transparent selection process. He expressed optimism that these changes would lead…

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