Pakistan’s power sector struggles with low capacity utilisation despite reforms: report
Report highlights inefficiencies, rising costs, and shift towards renewable energy
OMCs strongly oppose refineries’ push for binding “Take or Pay” clause
Enforcing the "Take or Pay" clause without fair market practices will push many small OMCs into severe liquidity crises, risking supply disruptions and potential market exits, warns OMAP
Govt considers net metering rate reduction to ease financial pressure on consumers
Despite the reduction, new users can still recover their investment within four to five years, assures Leghari
Govt mulls lower solar net metering rates, shares plan with IMF officials
Surplus solar power buyback may drop from current Rs27 to Rs10 per unit; tariff restructuring under review
KP launches Rs20bn solar project to provide 130,000 households with free energy
32,500 households to receive free solar panels, batteries, fans, and lights in first phase by selecting through electronic balloting; priority given to vulnerable groups
Govt secures Rs1.25tr loan at lower interest to cut power sector circular debt
Debt to be serviced over six years through Rs2.83 per unit surcharge; Rs463bn expected savings from renegotiated IPP deals
NEPRA reduces electricity tariff by Rs2.12/unit for DISCOs, Rs3/unit for K-Electric
Tariff cut for DISCOs applied under January’s FCA; KE reduction implemented based on December’s FCA
Pakistan industries pay almost twice the power costs of China, India, and US: report
High electricity costs are putting Pakistan’s export competitiveness at a disadvantage
HUBCO subsidiary adopts hybrid tariff model under new deal with govt
Agreement introduces ‘Hybrid Take and Pay’ model; CPPA will make payment of outstanding receivables as of October 31, 2024 within 90 days of approval of Agreement by Cabinet
Refineries urge OGRA to enforce binding supply obligations on OMCs
Five refineries write letter to Ogra to convene an urgent meeting with OMCs to finalise binding clause ensuring local product uplift before imports
OMC sales drop 18% MoM in February despite slight annual growth
Total volumes reach 1.14 million tons, PSO market share falls to 40% from 48.6% last year, while HASCOL reports 60% YoY growth
Power minister assures int’l development partners of transparency in talks with IPPs
Negotiations conducted in a free, fair, and transparent manner; IPPs given right to withdraw, seek arbitration, or opt for forensic audits, says Leghari
Cement sector profits surge 55% YoY in Q2FY25, exports rise 40%
Sector earnings reach Rs34.7bn, revenue climbs 21% QoQ; gross margins expand to 33%, driven by lower coal costs and improved dispatches; Lucky, Bestway and Fauji Cement accounted for 54% of total sector profits
Interloop’s road ahead
As the economy sees stability, there can be choppy waters ahead for the hosiery behemoth
Govt shelves plan to rebase power tariffs in January after IMF opposition
Tariff rebasing to continue from July 1; IMF and other development partners urge the govt to focus on ongoing reforms