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IPPs in Pakistan are receiving billions of rupees while not generating any electricity.

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5 months ago

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In the worst-case scenario, power plant agreements have led to capacity payments to Independent Power Producers (IPPs), which are fully funded by the impoverished population.

The five priciest IPPs in Pakistan, as per Khawar Ghuman, are included below.

Rousch Power Plant: Operating for 30 years and built in 1999, it charges 745 PKR per unit for power.

China Power Hub: At Rs350 per unit, the plant generates power.

At 177 PKR per unit, Port Qasim Electric offers energy.

Established in 1999, Saba Power Plant generated energy at a rate of 117 PKR per unit for a duration of 30 years.

At a cost of 95 PKR per unit, the Pakgen Power Plant generates electricity.

What Does a Capacity Payment Mean?
In order to ensure that the power producing firm can continue to generate electricity and meet additional demand, customers must pay a monthly capacity payment. This payment is known as the capacity payment.

It’s noteworthy that US dollars, not Pakistani rupees, are used to pay IPPs for capacity.

Gohar Ejaz, the former caretaker minister of commerce, has been educating people about the government’s errors and how, if left unchecked, they will worsen the nation’s economic circumstances through his remarks and social media posts.

Dr. Gohar Ejaz described in detail the performance of the five most costly power plants in the nation in one of his postings.

The Rousch Power Plant received payments of Rs1.28 billion between January and March 2024, while not producing any power, according to Dr. Gohar Ejaz. Parallel to this, the China Power Hub was given Rs. 33 billion in the same time frame even though it didn’t generate any electricity. Also compensated, without production, was Port Qasim Electric for over 30 billion PKR.

In addition, Jamshoro Power (GENCO I) received payment of about 930 million PKR—without producing any electricity—and Punjab Thermal Power received payment of over 10 billion PKR between January and March.

Sapphire Electric Limited received 590 million PKR for going three months without generating any electricity, while Seif Power Project was awarded 670 million PKR.

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In interbank trade, the Pakistani rupee beats the US dollar.

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6 days ago

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In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

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Phase II of CPEC: China-Pakistan Partnership Enters a New Era

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7 days ago

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The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.

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The inflation rate in Pakistan dropped to its lowest level.

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7 days ago

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On December 2, core inflation as determined by the Consumer Price Index (CPI) significantly slowed, falling to 4.9% in November 2024 from 7.2 percent in October 2024.

The CPI-based inflation rate for the same month last year (November 2023) was 29.2%, according to PBS data.

Compared to a 1.2% gain in the prior month, it increased by 0.5% month over month in November 2024.

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