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Punjab Cabinet clears new power duty guidelines for big power producers, solar plants

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The Punjab Cabinet has passed the Punjab Electricity charge Rules, 2026 that would establish a new framework for levy of electricity charge on large private power production units including generators and solar power systems.

As per the accepted guidelines, the private generators and solar systems with capacity more than 500 KVA would be included into the electricity duty net. The step is intended to control major self-generation facilities in the industrial and commercial sectors.

Under the system, industrial and commercial consumers will be paid an electricity duty of four paisa per unit. Domestic consumers nevertheless have been advised to be fully exempted from the new tax.

The Punjab government estimates that the new tariff scheme will produce an annual revenue of Rs306 million. Officials said the new guidelines are expected to impact 1,177 industrial and commercial sites.

Electric Inspectors can seal power producing plants not in accordance with the laws. The balance payable shall be recovered under the Land Revenue Act.

The regulations also advocate giving Electric Inspectors authority to review records of private power producing facilities. Compulsory registration will be required for operators of private power producing installations.

Industrial and commercial self-generation units will have to install separate energy meters. Authorities have also agreed to maintain a record of all major self-generation systems including solar power systems.

Under the new system, operators should file monthly returns and keep log books recording electricity generation and consumption. Those who fail to pay the duty within the stipulated period will be liable to late payment penalty of 10 to 15 per cent.

The guidelines also call for fines and probable suspension of power producing activities for submitting erroneous records or violation of regulatory standards.

The Punjab administration has formally decided to replace the Electricity Duty Rules 2012 with the Punjab Electricity Duty Rules 2026 after getting the nod for the new framework.

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According to Ali Pervaiz Malik, the Pak-Iran gas pipeline proposal is still being considered.

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The minister stated that the Pakistani government is working to maintain the project and find ways to advance it.

He pointed out that the cost of liquefied natural gas (LNG) imported from Qatar and gas available via the Iran-Pakistan pipeline is essentially the same. He did, however, note that Pakistan currently has the infrastructure needed to import LNG from Qatar.

He stated, “Pakistan would have to invest billions of dollars in laying pipeline infrastructure in the case of Iranian gas, which would significantly increase the overall cost of the project.”

In response to a query, Mr. Malik stated that it would not be proper to make any more remarks at this time. In reference to the current project dispute, he expressed optimism that both parties would be able to come to an out-of-court settlement in light of Pakistan’s involvement in the recent US-Iran confrontation.

The minister went on, “We will try to resolve the matter through negotiations and achieve a win-win outcome for all parties concerned.”

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A significant improvement for drivers using motorways and highways

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In a significant move that affects intercity travel throughout Pakistan, the government has reinstated former speed limits for drivers on national highways and motorways.

Details indicate that the previous speed limits have been immediately re-established. Cars and light vehicles are once again allowed to go up to 120 km/h on motorways under the updated arrangement.

Officials confirmed that the speed restriction for passenger and heavy vehicles on motorways has been reinstated at 110 km/h.

Authorities added that all types of vehicles, including cars, light vehicles, passenger coaches, and heavy vehicles, are now subject to the same speed limits on national highways.

According to the Motorway Police, the reinstated speed limits have already started to be implemented.

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Mango exports from Pakistan decline as the effects of the Middle East conflict persist

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economy that relies heavily on agriculture but is in the middle of the Middle East crisis, which its government has assisted in resolving.

This week, Pakistan announced an initial agreement between the warring parties, but it is too late for Sindh’s mango season, which started in June.

Due to declining demand in important countries, such as the Gulf, and skyrocketing shipping costs, mango dealers told AFP they anticipate a minimum 30% decline in export sales this year.

In addition to the financial hardship, local households are delaying purchasing the fruit due to a jump in inflation brought on by the regional crisis, which is lowering domestic sales.

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