Business

Gas will only be available for eight hours in winter: power minister

Published

1 year ago

Farwa

Loadshedding plan being devised to ensure gas supply for eight hours: minister.
Says natural gas reserves further depleted by 18% compared to last year.
Rs16 billion had been collected from electricity defaulters so far, says Ali.

Caretaker Power Minister Muhammad Ali has said that gas will only be available for eight hours in the winters amid depleting natural gas reserves in the country.

“[Gas] loadshedding has been taking place for the last few years. The loadshedding will occur this year as well because we don’t have enough gas to supply it for 24 hours,” the interim minister said while addressing a press conference in Islamabad on Wednesday.

Like last year, the minister said the loadshedding plan was being devised to ensure a gas supply for eight hours. He said the natural gas reserves have further depleted by 18 % compared to the last year.

Power Minister Ali also expressed hope that the issue of gas shortage for industry in December will be resolved to a greater extent as two liquefied natural gas (LNG) cargoes have been finalised.

The minister said despite various constraints, all-out efforts were being made to ensure the availability of gas to domestic, industrial and fertilizer sectors with minimum gas load management in the coming winter season.

“We have only two LNG terminals and limited natural gas but today we have finalised two LNG cargoes for December, which would help address the gas supply issues in December for the industry. The gas supply was also being improved for the fertilizer sector, he added.

Speaking about ongoing crackdown on power thieves, the minister said an amount of Rs16 billion had been collected from electricity defaulters so far during the ongoing crackdown, which would further continue.

He said it had been decided to change the board of directors (BoDs) of all the power distribution companies (DISCOs).

The management of DISCOs would be handed over to the private sector on long-term concession, he added.

Earlier this week, The News reported that the Petroleum Division was in the process of giving the final touches to a summary to increase the gas tariff, which will be tabled in the Economic Coordination Committee (ECC) meeting for approval

After ratification by the federal cabinet, the government will notify the new gas prices not from July 1, 2023 but from the date the cabinet approves the new tariff, top officials at the energy ministry had told The News.

“The top functionaries of the Petroleum Division have so far planned not to spare even the protected residential consumers just to ensure a zero increase in monthly flow to the circular debt in the gas sector. The protected consumers falling in the first four slabs, utilising gas up to 0.25 HM3, 0.5 HM3, 0.6HM3 and 0.9hm3 may face an increase from Rs300 to less than Rs500 per MMBtu.”

Business

Gold prices in Pakistan approach an all-time high.

Published

19 hours ago

Farwa

Following a substantial surge the prior day, gold prices in Pakistan are ascending to unprecedented levels with an additional gain on Thursday, coinciding with a rise in global precious metal rates.

The price of 24-karat gold in the local market rose by Rs700 per tola, reaching Rs277,900, as reported by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

Likewise, the cost of 10 grams of 24-karat gold increased by Rs600, currently priced at Rs238,254.

Globally, gold prices exhibited an upward trend, increasing by $7 throughout the day. The APGJSA reports that the international gold price was $2,682 per ounce.

Notwithstanding the increase in gold prices, the silver market exhibited stability, with the price of silver maintained at Rs3,050 per tola.

In the previous month, gold prices in Pakistan reached an unprecedented high of Rs 277,000 a tola, driven by substantial gains in the worldwide market.

Business

World Bank: Power industry subsidies soar by 400% in just five years.

Published

20 hours ago

Farwa

Ninety-four percent of domestic customers will benefit from the budgetary subsidy in 2024, according to a World Bank report, which credits the increase in protected consumers with contributing to the weight of subsidies.

In the current fiscal year, the electricity sector subsidy has increased by an astounding Rs. 954 billion, from Rs. 236 billion in the 2020 fiscal year to Rs. 1190 billion.

Notwithstanding changes, the circular debt has averaged Rs. 400 billion yearly over the last four years due to the incapacity to minimize losses and inadequate recovery of electricity payments.

According to the World Bank, the government must solve the fundamental problems in the power industry in order to lower the burden of subsidies and circular debt, as rising electricity prices and inadequate tax collection will only serve to worsen the circular debt crisis.

The rise in Pakistan’s power sector circular debt has raised worries from the World Bank (WB) despite an unprecedented increase in energy pricing.

Within the last six years, the debt has grown by 1241 billion rupees, according to the World Bank’s study. Between 2019 and 2021, the debt climbed by 1128 billion rupees.

The electricity sector’s circular debt has been increasing at an alarming rate, according to a World Bank analysis. Between 2022 and 2024, there was a substantial increase of 113 billion rupees.

Pakistan’s electricity industry has 2393 billion rupees in total circular debt as of 2024.

Restructuring is required to solve the circular debt issue, according to the World Bank.

Business

Final settlement: Govt to pay five IPPs Rs 72 billion.

Published

20 hours ago

Farwa

On October 10, Prime Minister (PM) Shehbaz Sharif declared that the agreements with five IPPS would be terminated in the first phase. Sources claim that the government will give Rs 15.5 billion to Rousch Power and Rs 36.5 billion to Hubco.

In a same vein, the federal government would pay Lalpir Power Rs 12.8 billion, Atlas Power Rs 15.5 billion, and Sapphire Power Rs 6 billion.

The sources state that late payment fees are not included in the settlement. With effect from October 1, the agreements with the five IPPs will be considered officially ended.

PM Shehbaz earlier remarked that the termination was carried out with the owners of the IPPs’ mutual permission while presiding over the federal cabinet meeting in Islamabad.

The Prime Minister notified the Cabinet that the only money that will be paid, interest-free, to these IPPs is the outstanding balance.

According to him, the national exchequer will gain over 411 billion rupees from the termination of these contracts, while power customers will save roughly sixty billion rupees.

According to Prime Minister Shehbaz Sharif, it was the result of the arduous teamwork of the entire government. In this regard, he also acknowledged the contributions and assistance of the associated parties. He specifically mentioned General Asim Munir, the Chief of Army Staff, who showed a personal interest in the situation.

The prime minister characterized the development as the start of a trip that will ultimately lead to the advancement and prosperity of the populace.

PM Shehbaz Sharif also brought up the assistance that the Punjabi and Federal governments gave to power users over the summer.