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Industries close due to IPPs’ exorbitant electricity costs: KATI

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4 months ago

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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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Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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13 hours ago

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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13 hours ago

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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14 hours ago

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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