Business

Power generation cost surges 20% year-on-year in Nov amid drop in cheap energy

Published

1 year ago

Farwa

Higher cost mainly due to decline in nuclear, wind-based generation.
Fuel cost for local coal-based generation increased by 55% y/y.
Rising cost of power generation added to consumers’ woes.

KARACHI: Amid a drop in nuclear and renewable energy sources, the country’s power generation cost jumped by nearly 20% year-on-year in November as the country relied more on expensive fossil fuels, The News reported citing data from a brokerage house on Thursday.

The average cost of electricity production rose to Rs7.17 per kilowatt-hour (kWh) last month, compared with Rs5.99 a year earlier, an increase of 19.7%, according to Arif Habib Limited (AHL).

The brokerage house said the higher fuel cost was mainly due to a decline in nuclear, wind and solar-based generation, which are cheaper and cleaner than coal, gas and oil.

“Additionally, the fuel cost for local coal-based generation increased by 55% year-on-year. Along with this, the fuel cost for Regasified Liquid Natural Gas (RLNG) and gas-based also increased by 17% year-on-year and 38% year-on-year, respectively,” it added.

The rising cost of power generation has added to the woes of Pakistan’s consumers, who are already grappling with high inflation and sluggish economic growth.

However, on a monthly basis, the power generation cost fell 13.2% in November, as compared to an average cost of Rs8.26 in October, when the country faced a severe gas shortage that forced it to use more expensive furnace oil for electricity production.

Power generation in the country dropped 9.8 % year-on-year to 7,547 gigawatt-hours (GWh) in November, down from 8,367 GWh a year ago. The year-on-year decrease in power generation was mainly due to a 32.8% fall in nuclear power output, which stood at 1,572 GWh in November.

Apart from nuclear, the year-on-year decrease was also attributed to a decline in RLNG (21.1%), gas (41.5%), and wind (6.2%) generation. On a monthly basis, power generation decreased by 21.2%, as compared to 9,572 GWh in October.

During the first five months of the current fiscal year (July-November), power generation increased by 1.8 %year-on-year to 61,258 GWh, compared with 60,153 GWh in the same period last year.

In November, hydel was the leading source of power generation, accounting for 36.5% of the generation mix, followed by nuclear (20.8%) and local coal (13.1%).

Among renewables, wind, solar and bagasse generation amounted to 2%, 0.7% and 0.4% of the generation, respectively.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

1 day ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

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

Published

1 week ago

Farwa

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.

Business

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

Published

1 week ago

Farwa

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.