Category: Shortcode

Ministry of Energy Shares Spot LNG Price Forecasts with Utilities Amid Concerns Over Outstanding Dues

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LNG-1

The Ministry of Energy (Petroleum Division) has disseminated spot LNG price projections to Sui gas companies, the National Transmission and Despatch Company (NTDC), and the Central Power Purchasing Agency-Guaranteed (CPPA-G) until September 2024. As per projections by M/s Pakistan LNG Limited (PLL), the anticipated spot LNG prices from March to September 2024 are: March-April: $9.43/MMBTU, May: $8.81/MMBTU, June: $8.39/MMBTU, July: $7.56/MMBTU, August: $7.37/MMBTU, and September: $8.35/MMBTU. These forecasts, provided by S&P Global on January 24, 2024, are subject to market fluctuations. The NTDC has shared tentative RLNG demand figures for…

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IMF Rejects Pakistan’s Energy Sector Plans, Citing Fiscal Risks

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The International Monetary Fund (IMF) has declined Pakistan’s proposals aimed at addressing the energy sector’s Rs1.3 trillion circular debt and reducing electricity prices for industries. Nathan Porter, IMF’s Mission Chief to Pakistan, expressed skepticism about the proposals, stating that they would burden residential consumers and pose fiscal risks. Porter emphasized that the proposed industrial tariff reduction plan fails to tackle underlying issues, questioning its effectiveness in achieving circular debt neutrality. He cautioned that such a plan would significantly burden vulnerable households. The interim government’s proposal aimed to reduce the cross-subsidy…

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Pakistan’s Debt Burden Hits Record High of Rs81.2 Trillion, Posing Challenges for New Government

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Pakistan is grappling with a historic debt burden, reaching a staggering Rs81.2 trillion, which surged by over 27% in the past year alone. The State Bank of Pakistan‘s latest bulletin reveals the alarming increase, with debt and liabilities climbing by another Rs17.4 trillion by the end of December, significantly outpacing previous rates of growth. The unprecedented level of debt, including Rs4.6 trillion in liabilities, poses urgent challenges for the newly elected government. With an average daily accumulation of Rs48 billion since December 2022, managing this escalating debt has become a…

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The SIFC has a new plan to tackle circular debt. Will it work? 

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Special-Investment

The Council is looking to woo the IMF with a unique new solution they are proposing Since its inception, the Special Investment Facilitation Council (SIFC) has looked to expand itself and take over the reins of the economic underpinnings of the country with limited success. The military and bureaucracy based chimera has looked to stimulate the economy while looking to bring in investment from foreign countries. And now the council is trying to take on one of Pakistan’s most persistent issues: circular debt.  As talks begin between the IMF and…

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K-Electric and Hub Power Company Sign Agreement to Explore Thar Coal Power Conversion

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In a significant move towards sustainable energy solutions, K-Electric (KE) and Hub Power Company Ltd have recently inked a memorandum of understanding (MoU) to delve into the potential for adopting affordable electricity through the conversion of the Hub plant to locally sourced Thar coal. Aligned with KE’s strategic vision to integrate power generation from domestic resources into its energy portfolio, this collaboration signifies a pivotal step towards leveraging Thar coal-based projects for power generation. The Hub power station, boasting a capacity of 1,292MW with four units of 323MW each, has…

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