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Industries close due to IPPs’ exorbitant electricity costs: KATI

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Korangi’s businesses have been driven to ruin, according to President KATI Johar Ali Qandhari, by IPPs, high electricity costs, and onerous taxes.

According to him, 60,000 people are unemployed and 350 industries have shuttered or scaled back.

He emphasized that if the IPP contracts aren’t reviewed, things will get worse.

The public was outraged, as were industrialists, about costly power and capacity payments to IPPs. Lately, a number of trade associations and chambers of commerce nationwide have bemoaned the effects of exorbitant electricity prices.

In a social media announcement on Sunday, former caretaker minister Gohar Ejaz claimed that the IPPs had received payments totaling Rs. 1.95 trillion. The former minister claimed, “The government is paying a power plant 140 billion rupees on a 15 percent load factor.” He continued, “Another plant is being paid 120 billion rupees over a 17 percent load factor, and the third power plant is being paid 100 billion on a 22 percent load factor.”

Gohar Ejaz remarked, “These are only three power plants, receiving 370 billion rupees.”

He revealed that the IPPs have provided substantial capacity quantities without producing any electricity.

“Capacity payments” is a phrase in all these contracts that permits inflated earnings, according to the former minister. He continued, “This clause results in the IPPs receiving sporadically distributed capacity payments.”

In addition, he had asked that the National Electric Power Regulatory Authority (NEPRA) represent all parties involved.

Additionally, he insisted that the agreements with the IPPs be changed to a “take and pay” arrangement.

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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