Business

CPEC firms seek timely payments to keep powerhouses afloat

Published

1 year ago

Farwa

Chinese firms overdue payments exceeded $1.2bn.
If status quo continues, it will be no more sustainable, say Chinese enterprises.
We are not being paid on time, CPEC firms add.

ISLAMABAD: Power sector firms of China Pakistan Economic Corridor (CPEC) in Pakistan had urged the caretaker government to guarantee timely payments against the sale of electricity to the Central Power Purchase Agency (CPPA) as they had initiated injecting their equity to make them operational, The News reported on Thursday.

Chinese enterprises brought up the issue whilst holding a media talk arranged by Infodor Salon on the CPEC energy sector.

The CPEC power projects are partially paid by the government on and off against the invoices they generate. It is estimated that their overdue payments have now exceeded $1.2 billion.

More importantly, due to the adverse risk profile of the power purchaser, Chinese national insurance company, M/s Sinosure, has reduced its coverage for Pakistan’s projects to 70% from 95% and banks are now asking for 25% coverage from a third party.

“If the status quo continues, it would be no more sustainable for Chinese enterprises to keep their projects fully operational. We are getting some portion of our receivables enabling us to pay loan installments with interest to our lenders,” was the unanimous response by almost all the representatives of the Chinese enterprises in the power sector when asked if they were getting 100% payments on time against the electricity being sold.

“We are not being paid on time and the government has not constituted a revolving fund as desired by CPEC enterprises, bringing us to a point where we do not even have the funds to open LCs for importing equipment critical to ensure maintenance of the plants.”

Earlier, CPEC energy enterprises including Power China Pakistan, China Three Gorges South Asia Investment Ltd, China Energy International Group Company Limited Pakistan Branch, China Power Hub Generation Company (PvT) Ltd, China Electric Power Equipment and Technology Company, China Machinery Engineering Corporation, Huaneng Shandong Ruyi (Pakistan) Energy (Pvt) Ltd briefed the media persons about their respective power projects and their contribution towards Pakistan’s economy and for the well-being of the people under corporate social responsibility (CSR).

They also highlighted their contribution towards sustainable climate-friendly initiatives under the Corporate Social Responsibility.

The representatives of Chinese enterprises also suggested the government ensure stability in the country, paving the way for consistent economic policies, apart from ensuring security to all Chinese project sites and market liberalisation.

“If the state manages to do that, then more investment from China and other countries, including the Middle East, would come to Pakistan,” they said.

At the outset of the media talk, Fahd Gauhar Malik, a young entrepreneur of one of the media houses, said that the theme of Infodor Salon on CPEC is based on 3Rs approach – Research, Resonate, and Rethinking.

He assured maximum cooperation to media persons from the platform of All Pakistan Chinese Enterprises Association for nullifying the fake news that appear off and on to help create a positive narrative about the CPEC projects.

The News and Media Director of All Pakistan Chinese Enterprises Association, Su Dong, asked the government to ensure stability in the country paving the way for consistent economic policies, apart from ensuring security to all Chinese project sites, and market liberalisation.

“If the state manages to do that, then more investment from China and other countries including the Middle East would come to Pakistan,” he said.

Business

Report: Solar is expected to set new records this year.

Published

8 hours ago

Farwa

In 2023, there was an expected 87% increase in growth. This year’s increase is 29% over the previous one, according to the research.

The cheapest source of electricity globally is solar power, and as such, it is expanding quicker than many anticipated, according to Euan Graham, an Ember electricity data analyst.

Ember estimates demonstrate the rapid growth of solar energy: in 2024 alone, new solar capacity will surpass the 540 GW of additional coal power added globally since 2010.

Expected to add 334 GW, or 56 percent of the global total in 2024, China continues to lead the globe in this industry.

According to the survey, it is followed by the US, India, Germany, and Brazil. These five nations will account for 75% of the new solar capacity in 2024.

According to the research, maintaining the sector’s growth required grid capacity and battery storage.

“Providing enough grid capacity and developing battery storage is critical for handling electricity distribution and supporting solar outside of peak sunlight hours as solar becomes more inexpensive and accessible,” the statement stated.

“Solar power might continue to surpass forecasts for the remainder of the decade if these issues are resolved and development is sustained.”

Business

The PSX has resumed operations, achieving a gain of 970 points.

Published

1 day ago

Farwa

The optimistic close at the PSX was propelled by rumors preceding the International Monetary Fund (IMF) executive board meeting on September 25, at which the approval of a $7 billion Extended Fund Facility (EFF) is expected, stated Ahsan Mehanti of Arif Habib Commodities.

Strong economic indicators, such as increasing remittances, escalating exports, and a declining trade deficit, further bolstered investor confidence. Furthermore, the Asian Development Bank’s (ADB) commitment to a $2 billion yearly concessional loan until 2027, along with a robust rupee, significantly contributed to the market’s favorable performance, he stated.

Widespread purchasing at the PSX was noted among blue-chip stocks, with major players like Mari Petroleum (MARI), Engro Fertilizers (EFERT), United Bank Limited (UBL), Meezan Bank Limited (MEBL), and Fauji Fertilizer Company (FFC) recording substantial increases. According to Topline Securities, these stocks collectively resulted in a significant 682-point increase in the index.

Pioneer Cement Limited (PIOC) announced its fiscal year 2024 results, revealing a profits per share (EPS) of Rs 22.79 and a cash dividend of Rs 10 per share. This announcement contributed to the favorable sentiment in the market.

Trading volume surpassed 400.2 million shares, resulting in a total turnover of Rs15.9 billion. Worldcall Telecom Limited (WTL) topped the volume chart, transacting more than 32.2 million shares.

The Large Scale Manufacturing Index (LSMI) demonstrated a year-on-year (YoY) gain of 2.4% in July 2024. This expansion was propelled by multiple critical areas.

Tobacco experienced a significant increase of 90.2%, establishing it as the foremost contributor to the LSMI growth. Conversely, the automotive sector witnessed a substantial increase of 72.0%, indicating robust demand and output.

The transport equipment category experienced an 11.7% increase, signifying robust growth in the manufacturing of transport-related machinery and equipment. The other manufacturing sector experienced a gain of 10.7%, positively impacting the overall LSMI.

Nevertheless, not all industries exhibited strong performance. The leading decliner was the fabricated metal sector, which experienced an 18.4% decrease, signifying a contraction in metal product manufacturing. The electrical equipment industry experienced a substantial decline of 19.4%, indicative of reduced output levels.

In July 2024, the LSMI decreased by 2.1% on a month-on-month (MoM) basis. This fall signifies a minor contraction in manufacturing operations relative to the preceding month, although the favorable year-on-year growth.

Business

As of August 2024, Pakistan’s current account is in surplus.

Published

1 day ago

Farwa

Pakistan’s current account deficit was $161 million as of August 2023, according to figures from the central bank.

The current account deficit for the months of July and August of this year was $171 million, compared to $939 million for the same time in the previous fiscal year.

According to experts, the 40% rise in remittances is the primary cause of the current account surplus.

August saw US$ 2.9 billion in offshore remittances to Pakistan, according to experts.

Comparing July of this year to July of last year, total exports increased by 11.3% YoY to $3.01 billion. In contrast to the $3.08 billion in exports the month before, it decreased by 2.2%.

Compared to the $4.99 billion in imports recorded in July of previous year, total imports increased 12.2% YoY to $5.6 billion. Imports decreased by 1.3% over the previous month.