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

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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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The total amount of Pakistan’s liquid foreign reserves is $15.95 billion.

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As of February 14, Pakistan’s total liquid foreign reserves were $15,947.9 million, with the State Bank of Pakistan’s (SBP) holdings being $11,201.5 million.

Official figures for the week ending February 14, 2025, show that the central bank’s liquid foreign exchange reserves rose by $35 million to $11,201.5 million.

Commercial banks maintained net foreign reserves of $4,746.4 million during the period under review, according to the breakdown of foreign reserves.

The nation’s total liquid foreign reserves as of the week ending February 07, 2025, were $15,862.6 million.

Of these, the central bank held $11,166.6 million in foreign reserves, while commercial banks kept $4,696 million in net reserves.

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In January 2025, RDA inflows reach 9.564 billion USD.

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Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.

The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.

Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.

By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.

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FBR lowers Karachi’s built-up structure property valuation rates

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A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.

The notification said that built-up structural values on residential property will be gradually reduced.

A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.

In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.

Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.

Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.

In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.

In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.

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