Pakistani industrialists join hands to oppose government cutting gas to captive power plants

A worker walks at the Bin Qasim Power Station (BQPS-II), some 35 kilometers (22 miles) from east of Karachi, on June 20, 2013. (Reuters/File)
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Updated 26 January 2021
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Pakistani industrialists join hands to oppose government cutting gas to captive power plants

  • CCP is an electricity generation facility used and managed by an industrial or commercial energy user for its own energy consumption
  • Pakistan’s Cabinet Committee on Energy last week said it had decided to ban new gas connections and disconnect supplies to existing captive power plants

KARACHI: In a rare move, Pakistani industrialists’ bodies have joined hands this week to oppose the federal government’s decision to discontinue gas supplies to captive power plants (CPPs) from next month.
A CPP is an electricity generation facility used and managed by an industrial or commercial energy user for its own energy consumption needs. Captive power plants can operate off-grid or be connected to the national electric grid to exchange excess generation.
Since the start of the winter, Pakistanis using natural gas for cooking and heating, as well as factories and power plants that rely on the fuel, have experienced significant inconvenience due to low gas pressure or no supply at all. Factories and business have been badly affected, threatening jobs and the livelihoods of workers.
Indeed, December and January see the largest spike in demand for gas in Pakistan, but this year authorities have said the demand-supply shortfall is greater on the back of higher consumption and diminishing indigenous supply.
Pakistan’s federal Cabinet Committee on Energy (CCoE) last week said it had decided to ban fresh gas connections and disconnect gas supplies for captive power plants. The policy only applies to industries that are connected to the power grid and therefore have an alternative electricity source, and the decision is based on the fact that cheaper domestic gas supplies were declining and their consumption by inefficient CPPs was a national loss, the government has said.




Pakistan's Federal Minister for Planning, Development, Reforms and Special Initiatives Asad Umar chairing a meeting of the Cabinet Committee on Energy at the Cabinet Division in Islamabad on January 21, 2020. (Photo courtesy: Ministry of Planning Development & Special Initiatives)

The CCoE’s decision is to be implemented from February 01, 2021 for the general industry and would be applicable to export-oriented industries from March 2021.
The government’s decision will impact all industries, including those declared as zero-rated, which are on natural gas and regasified liquefied natural gas (RLNG). The total number of captive power plants operational on gas is around 1,200 and use around 400 million standard cubic feet per day of gas.
On Monday, Pakistan industries and traders bodies gathered at the Federation of the Pakistan Chamber of Commerce and Industries (FPCCI) and called for a retraction of the government’s decision.




Mian Nasser Hyatt Maggo, President of FPCCI along with officials and representatives of trade bodies holding a press conference on January 25, 2021, against the government's decision to stop gas supplies to Captive Power Plants from February 01, 2021. (AN photo)

“The government has decided to stop the supply of gas to captive power plants that generate electricity for industries and they want us to obtain electricity from existing power utilities,” Mian Nasser Hyatt Maggo, President of FPCCI, told Arab News after a press conference. “The first problem is that they [power suppliers] don’t have systems and the second issue is that the industries should have systems in place to receive such power. If the gas is stopped the industry will collapse.”
“We are very surprised that without any homework, without any due diligence and without any thought process applied, they [government] have announced to stop supply of gas to the industries,” Zubair Motiwala, Chairman of the Businessmen Group (BMG), said.
“It is technically impossible that surplus electricity from WAPDA [Pakistan Water and Power Development Authority] territory is brought into KE [Karachi Electric] without putting in place grids, pylons, high transmission lines,” Motiwala said adding that “in order to supply electricity to the doorsteps of industries there are so many requirements and it is huge task.”
Industrialists said cutting supplies to CPPs would upset export orders and affect millions of people associated with these industries.
“The announcement has disturbed us, disturbed the industry because we are running on gas and our buyers are confused whether the commitments we made would be fulfilled or not,” Motiwala said. “Huge number of people working in the industry including vendors and womenfolk who would get unemployed.. it is millions of people who will be affected by this.”
A huge gap between the cost of the power generation through gas-fired captive power plants and the supply by power utilities is a main reason industrialists are opposing the government’s move, industrialists said.
“Own captive power cost of producing electricity would be Rs 11-12 per unit; if you buy from KE or WAPDA it is like Rs 19/20 per unit,” said Ismail Suttar, president of the Employers’ Federation(EFP) and Lasbela Chamber of Commerce and Industry. “If the cost is out we just can’t survive.”
Shariq Vohra, president of the Karachi Chamber of Commerce and Industry, said Prime Minister Imran Khan should immediately intervene and reject the cabinet’s decision in the interest of the country’s industries and economy.


Pakistani naval ships visit Kuwait and Iraq, conduct joint exercises in Arabian Gulf

Updated 22 December 2024
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Pakistani naval ships visit Kuwait and Iraq, conduct joint exercises in Arabian Gulf

  • Pakistan regularly holds joint exercises with allies to increase synergy and deter piracy, drug trafficking and other illicit activities
  • The visit of Pakistan Navy flotilla to Kuwait and Iraq will further enhance the existing diplomatic and naval relations, the military says

ISLAMABAD: Pakistani naval ships have visited Kuwaiti and Iraqi ports to conduct joint exercises with both navies in the Arabian Gulf, the Pakistani military said on Sunday, adding the visits would enhance existing relations.

Pakistan Navy Ships (PNS) Rasadgar and Azmat visited the Kuwaiti port of Al-Shuwaikh, while Pakistan Maritime Security Agency (PMSA) ship Dasht visited the Iraqi port of Umm Qasr, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.

On arrival at both ports, Pakistani diplomatic and host naval officials warmly welcomed the Pakistan Navy ships and the mission commander, along with commanding officers of the ships, held meetings with the naval leadership of both countries.

“Later, naval exercises were also conducted together with Kuwaiti and Iraqi navy ships,” the ISPR said in a statement. “The exercises were aimed at improving mutual cooperation between the navies and developing the capacity for joint operations.”

During the meetings, naval officials discussed matters of mutual interest, cooperation in maritime security and communication, according to the statement.

“The visit of Pakistan Navy flotilla to Kuwait and Iraq will further enhance the existing diplomatic and naval relations with friendly countries,” it read.

Pakistan Navy regularly collaborates and holds joint military exercises with allies to increase synergy, promote regional peace and stability and deter piracy, drug trafficking and other illicit maritime activities.

This month, Pakistan Navy conducted joint naval exercises and drills with Royal Oman ship ‘Alseeb.’ The bilateral naval exercise, “Samar Al-Tayeb,” is conducted regularly between the navies of the two nations.

In July, Pakistan Navy also assumed command of a multinational task force responsible for ensuring maritime security in the southeastern waters of the Middle East, operating in the Arabian Sea, Gulf of Oman and Gulf of Aden.


Pakistan’s army vows to hunt down militants a day after attack kills 16 soldiers

Updated 22 December 2024
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Pakistan’s army vows to hunt down militants a day after attack kills 16 soldiers

  • Pakistan has struggled to contain militancy in its northwest since a fragile truce with Pakistani Taliban broke down in 2022
  • Islamabad has frequently blamed the surge in militancy on militants operating out of Afghanistan, Kabul denies the allegation

ISLAMABAD: Pakistan’s army chief, General Asim Munir, on Sunday vowed to hunt down militants waging attacks against security forces and their facilitators, the Pakistani military said, a day after the killing of 16 soldiers in an ambush in the country’s northwest.

Gen. Munir said this during his visit to the South Waziristan district in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, which has been battling a surge in militancy.

The visit came a day after the killing of 16 soldiers and eight militants during a gunfight in South Waziristan after a group of militants ambushed an army outpost in Makeen area.

Interacting with officers and troops, the army chief commended their resilience and steadfastness in the face of militancy, according to the Inter-Services Public Relations (ISPR), the military’s media wing.

“The army chief highlighted that the courage, resilience, and unyielding determination of Pakistan’s armed forces are the cornerstone of the nation’s sovereignty,” the ISPR said in a statement

“COAS reaffirmed Pakistan Army’s commitment to pursuing Fitna Al Khwarij [militants] which shall continue to be hunted down till its elimination along with the facilitator, abettors and financier who will be made to pay the price for their nefarious activities against the state.”

The brazen raid on the outpost near the border with Afghanistan was claimed by the Pakistani Taliban, who said it was staged “in retaliation for the martyrdom of our senior commanders.”

The development came days after the Pakistani military said it had killed 11 militants in separate operations in KP’s Tank, North Waziristan and Mohmand districts.

Pakistan has witnessed a surge in militancy in KP since November 2022, when a fragile truce between the Pakistani Taliban and the government in Islamabad broke down.

Islamabad has frequently accused neighboring Afghanistan of sheltering and supporting militant groups that launch cross-border attacks. Afghan officials deny involvement, insisting Pakistan’s security issues are an internal matter of Islamabad.

On Saturday, the Pakistani military also urged the Taliban administration in Kabul to ensure robust border management after a group of militants tried to infiltrate from Afghanistan, leading to a skirmish that left four militants and a soldier dead a day earlier.


Pakistan national airline aims to expand its fleet to improve flight operations

Updated 22 December 2024
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Pakistan national airline aims to expand its fleet to improve flight operations

  • PIA has 23% of Pakistan’s domestic aviation market, but its 34-plane fleet has failed to compete globally
  • The airline has faced a lack of direct flights, despite having agreements with 87 countries and key landing slots

KARACHI: Pakistan International Airlines (PIA) is aiming to expand its fleet to improve flight operations, the national flag carrier said on Sunday, following the addition of another Airbus 320.

PIA has 23 percent of Pakistan’s domestic aviation market, but its 34-plane fleet has failed to compete with carriers internationally.

The Pakistani airline has been facing a lack of direct flights, despite having agreements with 87 countries and key landing slots.

“The 11th Airbus 320 AP-BOM has been inducted into the operational fleet with new engines. The aircraft was rolled out from the hangar with new paint and cabin decoration,” PIA said in a statement.

“PIA’s operational fleet will also include long-grounded Boeing 777 and ATR aircraft in the next few days.”

The fleet revival will greatly improve the expansion of PIA’s network and product quality, according to the statement. From this week, PIA has also introduced an in-flight Internet system in domestic flights, which is gaining popularity among passengers.

The airline said strict adherence to flight schedules, providing safe and high-quality products to passengers was its top priority.

“PIA’s flight schedule has achieved 90 percent regularity,” PIA Chief Executive Officer Khurram Mushtaq said. “Measures for operational fleet expansion and product improvement are part of our commitment.”

Earlier this month, PIA said it would resume flights to Europe in January, starting with Paris, after the EU aviation regulator lifted a ban on the national flag carrier.

PIA’s authorization to operate in the EU was suspended in June 2020 over concerns about the ability of Pakistani authorities and its Civil Aviation Authority to ensure compliance with international aviation standards.

The ban cost the loss-making airline 40 billion rupees ($144 million) annually in revenue. Pakistan’s attempts to privatize PIA fell flat this year, when it received only a single offer, well below its asking price.


Pakistani province launches helicopter service to evacuate people, dispatch aid to clashes-hit district

Updated 22 December 2024
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Pakistani province launches helicopter service to evacuate people, dispatch aid to clashes-hit district

  • Clashes between Sunni, Shia tribes have killed over 100 people in Kurram since last month
  • On Friday, authorities set a deadline of Feb. 1 for the warring tribes to surrender weapons

PESHAWAR: Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province has launched a helicopter service to evacuate people and transport aid to Kurram district that has been hit by sectarian clashes in recent weeks, officials said on Sunday.

Kurram, a tribal district of around 600,000 near Pakistan’s border with Afghanistan where federal and provincial authorities have traditionally exerted limited control, has been a flashpoint for sectarian tensions between Shia and Sunni tribes for decades.

Fresh clashes that erupted last month have killed more than a hundred people, triggering a humanitarian crisis with reports of starvation, lack of medicine and oxygen shortages following the blocking of the main highway connecting Kurram’s main city of Parachinar to the provincial capital of Peshawar.

In response to the problems being faced by residents, the KP administration has been facilitating travel between Parachinar and Peshawar. On Sunday, two flights evacuated 27 individuals as well as carried 16 government staffers and members of a tribal council, which has been striving to achieve peace, to Kurram.

“There is no fare involved in transportation of people or medicines via the helicopter, rather it is a voluntary service by the KP government to meet the emergency situation,” Nisar Muhammad Khan, a KP government official, told Arab News.

The helicopter service was also being used to dispatch medicines to Parachinar. A day ago, 53 individuals, including 14 patients, were shifted to Peshawar from Kurram via helicopter, according to the provincial authorities.

A third flight was scheduled to bring people stranded in the Tal area back to Parachinar, while five more flights were expected to relocate over a hundred people on Sunday, according to the provincial government.

Chief Minister Ali Amin Gandapur’s office said the government had so far dispatched 1,850 kilograms of medical supplies to Kurram, assuring that it would mobilize all resources to ease problems of the people and ensure durable peace in the region.

The development comes days after the KP authorities set a deadline of Feb. 1 for warring Sunni and Shia tribes in the district to surrender all weapons and dismantle their bunkers to stem sectarian clashes in the region.

The decision was made at a meeting of the KP apex committee, which comprises civilian and military officials, to discuss a sustainable solution to the issue. It allowed the launch of a special air service for temporary evacuation from some parts of Kurram to protect people’s lives, according to the apex committee declaration.

“The agreement outlines that both sides will submit a detailed action plan within 15 days for voluntary submission of weapons,” read a declaration issued after the apex committee meeting.

“All weapons are to be deposited with the local administration by February 1. Additionally, it was decided that all bunkers in the area will be dismantled by the same deadline.”

In the meantime, land routes to the area would be opened intermittently on humanitarian grounds and a mechanism was put in place for secure transportation, according to the statement.

“Personnel of police and Frontier Corps will jointly provide security to the convoys,” it read.

Last month’s clashes erupted after rival tribes attacked convoys of passengers on the Parachinar-Peshawar road, which were followed by attacks on each other’s villages.

The apex committee asked both sides to avoid any violent action in the future to keep the land route safe and open at all times, hoping that the parties would fully cooperate with the government for a lasting solution to the issue.


Champions Trophy preparations in full swing as Karachi stadium upgradation nears completion

Updated 22 December 2024
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Champions Trophy preparations in full swing as Karachi stadium upgradation nears completion

  • PCB Chairman Mohsin Naqvi says the National Stadium will be ready well before the ICC tournament
  • He says the PCB is improving facilities for Pakistani cricket fans to ensure they have a better experience

ISLAMABAD: Preparations for the ICC Champions Trophy 2025 are progressing rapidly, with the upgradation of Karachi’s National Stadium nearing completion, Pakistan Cricket Board (PCB) Chairman Mohsin Naqvi said on Sunday during a visit to the venue.

The tournament, scheduled for February 2025, has been at the center of controversy following India's reluctance to play in Pakistan due to strained political ties.

The International Cricket Council resolved the impasse by approving a hybrid model, allowing India’s matches to be held at neutral venues while other teams play in Pakistan. The decision ensured India’s participation while retaining Pakistan as the official host.

“Remarkable progress has been made in a very short time,” Naqvi was quoted in a PCB statement. “The upgradation of the National Stadium will be completed well before the Champions Trophy tournament.”

During the visit, Naqvi reviewed ongoing projects, including the installation of new seats in enclosures, enhanced parking facilities for 2,700 vehicles and finishing work on the stadium building.

He also instructed officials to expedite the installation of LED lights and scoreboards.

“We are improving facilities for cricket fans to ensure they have a better experience,” he added.

The PCB is under pressure to ensure the country is ready to host the major ICC tournament.

Security concerns and political tensions had previously kept high-profile international cricket events away, but recent improvements in safety and infrastructure have bolstered Pakistan’s case as a venue.

Praising the rapid progress at the National Stadium, Naqvi lauded the project team for their dedication.

“I congratulate the entire team for their outstanding and swift work,” he said.

The Champions Trophy is seen as a pivotal moment for Pakistan cricket, with the PCB aiming to deliver a world-class tournament to reaffirm the country’s ability to host international events successfully.