Pakistan to continue gas supplies to captive power plants until December

Governor Sindh Imran Ismail, second left, and other government officials hold an online meeting with industrialists at Governor House in Karachi on Jan. 29, 2021. (Photo Courtesy: Petroleum Division)
Short Url
Updated 04 March 2021
Follow

Pakistan to continue gas supplies to captive power plants until December

  • The government had earlier decided to stop gas supplies to general industries from February
  • Earlier, industrialists rejected the decision and warned against its negative impact on the country’s exports

KARACHI: The government said on Friday it would continue to supply gas to industrial captive power plants (CPPs) until December instead of abruptly cutting it from February. 

“Industrial units, which are not currently connected to the power grid or have electrical connection that are sufficient for their needs, will not be disconnected immediately,” Nadeem Babar, Special Assistant to Prime Minister on Petroleum, assured industrialists in an online meeting held at Karachi’s Governor House. 

Pakistan’s Cabinet Committee on Energy (CCoE) said last week it would not give fresh gas connections and discontinue gas supplies to CPPs. The decision was supposed to be implemented from February for most industries and from March for export-oriented industries. 

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. 

Strongly reacting to the government’s decision, industrialists in a news conference in Karachi on Monday rejected the move, calling it "impossible" in the current situation and warning against its negative impact on the country's exports. 

However, the prime minister’s aide on petroleum asked the industrialists to “shift from gas-based captive power generation to the national power grid by December this year,” according to a statement issued by the Petroleum Division on Friday. 

“A year is enough to switch over to electricity, but we will have to see if the government manages to develop its capacity to facilitate,” Mian Nasser Hyatt Maggo, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), told Arab News on Friday in a brief comment. 

“Gas connections to 118 CPPs, which were disconnected, are being restored,” he added. 

After suffering from decades of power production deficits, Pakistan is now facing a different kind of problem which is surplus power generation. Since the start of the China-Pakistan Economic Corridor (CPEC), a large number of power plants have come online with a cumulative generation capacity of about 38,000 megawatts which is likely to reach 40,000 megawatts by 2023. This implies that about half of the power generated will remain unutilized. 

Pakistan wants to utilize the surplus power by supplying it to CPPs and divert all the gas they consume to other necessary places and projects. 

“The decision is based on the fact that the consumption of scarce natural gas by inefficient CPPs was causing a big national loss. On the other hand, the surplus power generation capacity can be absorbed in these industrial units at competitive rates and through reliable supplies,” Babar said. 

Tabish Gohar, Special Assistant to Prime Minister on Power who also attended the meeting, informed the forum that Pakistan had an overcapacity in terms of power generation and its circular debt was a basic economic issue. He added that connecting industries to the national grid would help reduce the burden of take-or-pay charges on the government.​ 

“The present government had announced the electricity tariff support package whereby all industries would get discounted rate on power tariffs on an incremental usage of electricity for the next three years,” he continued. 

“Discos [or electricity distribution companies] would expeditiously process new connections and load enhancement applications for industries to ensure quality of supply to industry,” Gohar said.

According the FPCCI president, the meeting also decided to establish a working group to sort out issues pertaining to gas supplies in an amicable manner. 


Pakistani PM’s aide warns Imran Khan’s party against stirring ‘instability’ with protest drive

Updated 6 sec ago
Follow

Pakistani PM’s aide warns Imran Khan’s party against stirring ‘instability’ with protest drive

  • Khan’s PTI party has launched 90-day anti-government movement to demand ex-PM’s release
  • Rana Sanaullah says law will take its course if PTI incites unrest during agitation campaign

ISLAMABAD: A top political adviser to Pakistan’s prime minister on Monday warned jailed former premier Imran Khan’s political party against inciting unrest during a newly announced protest movement to demand his release, as political tensions in the country continue to intensify.

Khan, who was ousted from office in a parliamentary vote in April 2022, has been jailed for nearly two years on multiple charges, which he and his Pakistan Tehreek-e-Insaf (PTI) party insist are politically motivated. PTI currently holds power in the northwestern province of Khyber Pakhtunkhwa and has previously led a number of protest marches toward the capital, Islamabad.

On July 13, PTI launched its latest agitation campaign, describing it as a 90-day “do-or-die” protest. The announcement followed the suspension of 26 PTI lawmakers in Punjab and the Supreme Court’s rejection of the party’s bid to reclaim reserved parliamentary seats for minorities and women.

“They have now planned a program lasting over 90 days. In this, if they remain peaceful, it’s fine, it’s their democratic right,” Rana Sanaullah, adviser to the prime minister on political and public affairs, said in an interview with a local news channel. 

“And if they take the law in their hands and try to create instability in the country then definitely the law will take its course.”

Sanaullah also accused Khan’s party of bypassing the government and seeking intervention from the military, commonly referred to in Pakistan as “the establishment.”

“They did not talk about speaking with the government [to resolve their issues],” he added. “They want to speak to the establishment, they are trying to straighten out their affairs through them.”

The latest protest drive was finalized at a meeting in Lahore on July 12, attended by PTI leader and Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur who alleged that the PTI was being denied its right to peaceful protest. He vowed that the party would mobilize supporters nationwide before marching toward the capital.

Earlier this month, Khan’s sister announced that his sons, Sulaiman and Kasim, would join the protest campaign in Pakistan after returning from the United States, where they will seek to raise awareness about alleged human rights violations against Khan and his party.

PTI has organized a series of nationwide demonstrations since last year, calling for Khan’s release and an independent investigation into the February 2024 general elections. During one such protest in November 2024, the government said four security personnel were killed in clashes with Khan supporters, an allegation PTI denies.

The government maintains that the 2024 elections were free and fair and accuses the PTI of undermining democratic processes and causing economic stability through confrontational tactics. Pakistan’s military, long a powerful force in national politics, denies accusations of political interference or any role in Khan’s ouster or imprisonment. 


Saudi consortium launches $50 million fund to ease pilgrimage costs for Pakistanis — CEO

Updated 8 min 19 sec ago
Follow

Saudi consortium launches $50 million fund to ease pilgrimage costs for Pakistanis — CEO

  • Pilgrimage fund aims to reduce Hajj costs by 20 percent and Umrah by 25 percent by September
  • Consortium says Pakistanis spend over $5 billion annually on travel to Saudi Arabia

KARACHI: A Saudi-based consortium of travel and hospitality companies has launched a $50 million fund to reduce the cost of Hajj and Umrah pilgrimages for Pakistani travelers by as early as September, the group’s chief executive said on Monday.

The consortium includes online Umrah booking platform Funadiq.com, Emaar Al Diyafa Group of hotels, Skyline Travel Company and other firms operating in Makkah. Its stated goal is to modernize the infrastructure and operations of Pakistani travel agencies to help them meet Saudi regulatory standards and better serve pilgrims.

The consortium’s CEO Mohammad Salman Arain told Arab News the main objective behind setting up the fund is to upgrade travel agencies’ infrastructure and operations in every major Pakistani city. 

He said the fund is expected to lower Hajj costs by 20 percent and Umrah costs by 25 percent for Pakistani pilgrims.

“On average, [Umrah for one person] is Rs300,000 ($1,054) and we expect that by September, a small travel agent would be able to offer it to his customers at Rs240,000 ($844) to Rs250,000 ($879),” Arain said in a telephone interview on Monday.

Arain attributed the current high costs to inefficiencies in the way many Pakistani travel agents operate:

“Once we help them operate better then Umrah will become cheaper for our pilgrims.”

His company, Umrah Companions, also launched what it calls the world’s first AI-powered Umrah agent this month, designed to help digitally savvy pilgrims customize their travel packages based on cost and convenience.

The consortium will also help Pakistani Hajj organizers adapt to Saudi Arabia’s evolving regulations.

“This should make Hajj better organized and cheaper as well,” Arain said.

In a separate statement, Funadiq.com said over 2 million Pakistanis travel to Saudi Arabia each year for pilgrimage and spend more than $5 billion annually, making Pakistan one of the world’s largest pilgrimage markets.

“Yet despite these numbers, the sector continues to suffer from poor management,” the company said. “More than 67,000 pilgrims missed Hajj this year alone.”

That figure refers to a large portion of Pakistan’s private Hajj quota that went unutilized this year due to reported delays by travel companies in completing payment and registration requirements, according to Funadiq.com. 

Private operators have blamed the shortfall on technical glitches, payment delays, and poor coordination between service providers. Pakistan’s government fulfilled its full allocation of over 88,000 pilgrims.

The Saudi consortium’s investment will be used for technology upgrades, staff training, and process improvements in small- and medium-sized travel agencies. These improvements could make the booking process 50 percent faster, Funadiq.com said.

“We are stepping in to help change that, working closely with the government, airlines, and private sector partners,” the company added.


Pakistan warns of more rains, floods as monsoon death toll hits 105 since June

Updated 17 min 13 sec ago
Follow

Pakistan warns of more rains, floods as monsoon death toll hits 105 since June

  • Third spell of seasonal rains expected to begin July 14, meteorological department says
  • Punjab reports highest number of fatalities, followed by Khyber Pakhtunkhwa and Sindh

ISLAMABAD: The Pakistan Meteorological Department (PMD) warned on Monday heavy monsoon downpours are likely to trigger flash floods and landslides across several regions of the country this week, as the death toll from rain-related incidents since June 26 rose to 105.

The toll includes 40 deaths in Punjab, Pakistan’s most populous province, followed by 31 in Khyber Pakhtunkhwa (KP), 17 in Sindh, 16 in Balochistan, and one reported fatality in Azad Kashmir, according to official figures.

A total of 211 people have been injured in rain-related incidents, with Punjab again reporting the highest number (111), followed by KP (54), Sindh (7), Azad Kashmir (5), and Balochistan (4).

The National Disaster Management Authority (NDMA) has warned that a third spell of monsoon rains is expected to begin across the country from today, Monday, July 14.

“A low-pressure area (LPA) presently located over northwest Madhya Pradesh (India) is likely to affect Pakistan during next 24 to 72 hours,” the PMD said in its forecast.

“Under the influence of this weather system, strong monsoon currents are expected to penetrate central and upper parts [of the country]. A westerly wave is also present over upper parts of the country.”

The PMD said heavy rains with wind and thunderstorms are likely in most parts of KP, Punjab, Kashmir, Gilgit-Baltistan, Islamabad and northeast and southern Balochistan on Monday.

“Scattered heavy falls (at times very heavy) are likely in Islamabad, Khyber Pakhtunkhwa, Kashmir, Punjab, and northeastern Balochistan,” it added.

Authorities have warned of possible landslides and mudslides in hilly areas such as Murree, Galliyat, KP, Kashmir, and Gilgit-Baltistan, which could result in road closures and blockades.

“Heavy downpour may cause urban flood in low-lying areas of Islamabad/Rawalpindi, Gujranwala, Lahore, Sialkot, Sargodha, Faisalabad, Nowshera, and Peshawar,” the PMD said. “Caution is advised for the public.”

The NDMA has called on provincial and district administrations to prepare emergency response teams, ensure the availability of rescue machinery, and clear drainage systems in urban areas. Tourists have been advised to avoid high-altitude areas during the period of heavy rainfall.

Pakistan, a country of more than 240 million people, is among the nations most vulnerable to climate change. In 2022, record monsoon rains combined with glacial melt caused catastrophic flooding that affected 33 million people and killed more than 1,700.


Pakistan to launch new business train between Lahore and Karachi

Updated 38 min 6 sec ago
Follow

Pakistan to launch new business train between Lahore and Karachi

  • Train will feature 28 digital coaches, Wi-Fi and international-standard dining car
  • Upgrade part of broader effort to modernize railways and improve intercity travel

ISLAMABAD: Pakistan Railways will launch a new state-of-the-art business train service between Lahore and Karachi from this week, Radio Pakistan reported on Monday, outlining ongoing efforts to modernize the country’s aging rail infrastructure and improve passenger experience.

Rail transport remains a critical but underfunded part of Pakistan’s public infrastructure. The Pakistan Railways network stretches over 7,700 kilometers and connects major cities, yet it has struggled for decades with outdated technology, frequent delays and safety issues due to lack of investment and mismanagement.

In recent years, successive governments have pledged to revitalize the sector. Recent initiatives have included track rehabilitation, procurement of new locomotives and the expansion of digital ticketing systems.

The new business service aims to offer passengers a significantly enhanced travel experience on the popular north-south corridor between Lahore and Karachi, two of the country’s largest cities.

“The new train will feature twenty-eight digitally equipped coaches, complimentary Wi-Fi, and an international-standard Dining Car, offering the passengers a modern and comfortable travel experience,” state broadcaster Radio Pakistan reported on Sunday.

The service marks a departure from older long-distance trains, which have long been criticized for overcrowding and lack of basic amenities. With onboard Internet and upgraded interiors, the new train will be geared toward business travelers and middle-class commuters looking for a more reliable and comfortable alternative to road or air travel.

Pakistan Railways did not disclose the exact launch date or fare structure but said the service would commence within the week.

“The new train service, which will run between Lahore and Karachi, aims to deliver a significantly enhanced travel experience to the passengers,” the report added.


Pakistan launches new agri-trade authority to promote modern farming

Updated 13 min 34 sec ago
Follow

Pakistan launches new agri-trade authority to promote modern farming

  • NAFSA aims to modernize agriculture, reduce chemical use, and boost trade transparency
  • Initiative comes under Special Investment Facilitation Council overseeing economic reforms

ISLAMABAD: Pakistan has established a new regulatory body to reform its agriculture sector and bring domestic food safety standards in line with international requirements, state-run Associated Press of Pakistan (APP) reported on Monday.

The new National Agri-Trade and Food Safety Authority (NAFSA) has been set up under a reform drive led by the Special Investment Facilitation Council (SIFC), a civil-military hybrid body formed in 2023 to fast-track foreign investment and economic reform in strategic sectors, including agriculture, mining, IT and defense production.

NAFSA consolidates the Department of Plant Protection (DPP) and the Animal Quarantine Department into a single authority aimed at promoting modern agricultural practices, reducing excessive chemical use and facilitating trade in agricultural products.

“The establishment of the new body, by merging DPP and Animal Quarantine, is an important milestone toward development of agriculture sector,” the APP report stated.

The report did not provide further details on NAFSA’s governance, regulatory powers and rollout timeline.

Agriculture remains a cornerstone of Pakistan’s economy, employing nearly 38 percent of the workforce and contributing around 19 percent to the country’s GDP. However, the sector has long faced challenges, including outdated practices, poor regulatory oversight, low export competitiveness and barriers in meeting international sanitary and phytosanitary (SPS) standards.

By centralizing regulatory oversight and compliance, the government hopes NAFSA will address long-standing inefficiencies and support value-added agricultural exports.

“NAFSA is aimed at introducing modern agricultural systems according to global standards,” the APP said. “It will help reduce unnecessary use of Methyl Bromide, saving up to forty thousand rupees per container.”

Methyl Bromide, a fumigant used to control pests during export processing, has been heavily restricted under global environmental protocols due to its ozone-depleting properties. NAFSA’s efforts to limit its use are expected to improve both environmental sustainability and export cost efficiency.

The move aligns with broader reforms spearheaded by the SIFC, which was formed through a civil-military consensus to fast-track investment decisions, cut bureaucratic delays and attract foreign capital, especially from Gulf and Chinese partners, to priority sectors.

“Transparency and innovation is being promoted in the agriculture sector with the support of the SIFC,” the APP report said.