Pakistan increases electricity tariff by 47% for revival of $6 billion IMF program

Men work on electric pylons along the roadside in Karachi on May 30, 2021. (AFP/File)
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Updated 02 June 2022
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Pakistan increases electricity tariff by 47% for revival of $6 billion IMF program

  • Power regulatory authority blames rising fuel prices, capacity cost and depreciation of rupee for tariff hike
  • Analysts say the revival of IMF program is likely after the reversal of fuel and power subsidies by government

KARACHI: The National Electric Power Regulatory Authority (NEPRA) on Thursday announced to increase electricity base tariff by 46.7 percent, or Rs7.9 per unit, to help the country revive the much needed $6 billion loan program which was agreed with the International Monetary Fund (IMF) in 2019.

During the recent round of negotiations between Pakistan and the IMF in Qatar, the fund called for concrete policy actions, including the removal of fuel and energy subsidies by the government.

“The tariff has been determined for FY [fiscal year] 2022-23, which on National Average is Rs.24.82/kWh [kilowatt hour], higher by Rs.7.9078/kWh than the earlier determined national average tariff of Rs.16.91/kWh,” NEPRA said in a statement issued on Thursday.

“The increase of Rs.7.9078/kWh is mainly due to increase in Fuel Prices, capacity cost and impact of PKR [Pakistani rupee] devaluation.”

The regulatory authority said the determined prices had been shared with the federal government and were subject to the issuance of notification to implement the increased tariff from the next budgetary year.

“The determined tariffs have been intimated to the Federal Government,” the statement added. “The Federal Government as per NEPRA Act is required to file an application for determination of uniform tariff for all the DISCOs [distribution companies].”

The authority said the energy purchase price was projected at Rs.1,152 billion during the next year while the capacity charges including National Transmission and Dispatch Company (NTDC) and High Voltage Direct Current (HVDC) cost was projected to be Rs1,366 billion.

The IMF program was stalled after the previous administration announced about $2 billion fuel and energy subsidies earlier this year in contravention to the agreement with the fund.

“Now the way is clear and hopefully the announcement of a staff-level agreement will be made early next week,” Dr. Vaqar Ahmed, joint executive director at the Sustainable Development Policy Institute (SDPI), told Arab News.

“Another point is that its inflationary impact will start from the current month and the government must immediately roll out the relief package it has announced as targeted subsidy,” he continued.

Pakistan has received $3 billion from the IMF and another $3 billion are expected after the resumption of the program. The authorities have also requested the fund to expand the size of the program to $8 billion and increase its tenure to June 2023, according to finance minister Miftah Ismail.

The revival of the IMF program would unlock funding from other institutional donors including the World Bank, Asian Development Bank and friendly countries including Saudi Arabia, China and the UAE.


At UNSC, Pakistan calls for permanent ceasefire in Gaza, urgent humanitarian support to Palestinians

Updated 18 February 2025
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At UNSC, Pakistan calls for permanent ceasefire in Gaza, urgent humanitarian support to Palestinians

  • The statement comes amid a six-week truce between Hamas and Israel that ended 15-month war, which has killed over 48,000 Palestinians
  • Pakistan Deputy PM Ishaq Dar rejects any displacement of the Palestinian people, urges revival of a process to achieve two-state solution

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar on Tuesday called for a permanent ceasefire in Gaza and urgent delivery of humanitarian aid to people affected by Israel’s war as he addressed a high-level debate at United Nations Security Council (UNSC).
Dar was addressing the debate, titled “Practicing Multilateralism: Reforming and Improving Global Governance,” which was convened by China. The session was presided over by Chinese Foreign Minister Wang Yi.
The statement came amid a six-week truce announced on Jan. 19 between Hamas and Israel that ended 15 months of war, involving the gradual withdrawal of Israeli forces from central Gaza and the return of displaced Palestinians to the north.
Addressing the session, Dar emphasized the need for international commitment to multilateralism to address emerging global challenges, calling for upholding principles of the UN Charter, including self-determination, the non-use of force, respect for sovereignty, and the peaceful resolution of disputes.
“He called for the full implementation of the agreement to secure a permanent ceasefire in the Gaza and the urgent humanitarian support to the Palestinian people and the revival of a political process to achieve the two-state solution,” the Pakistani foreign office said.
Israel’s war on Gaza, which began after the Oct. 7, 2023 attacks by Hamas, has killed more than 48,000 Palestinians and displaced almost all of Gaza’s 2 million population by laying waste to swathes of neighborhoods, schools and hospitals.
The deputy prime minister condemned the massive loss of civilian lives and the persistent Israeli violations of the international law.
“He rejected any displacement of the Palestinian people from their homeland,” the foreign office added.
The statement followed remarks by United States (US) President Donald Trump and Israeli PM Benjamin Netanyahu about the relocation of Palestinians to Egypt, Jordan or other countries, which have been rejected by Saudi Arabia, Egypt, Jordan, Pakistan and other nations apart from being condemned by international rights groups.
Palestinian territory – encompassing the Gaza Strip and West Bank, including East Jerusalem – has been occupied by Israel since 1967. Pakistan does not recognize Israel and has consistently called for an independent Palestinian state based on “internationally agreed parameters
In his address, the Pakistan deputy premier also proposed the adoption of a roadmap for strengthening multilateralism and reforming the global governance.
“He emphasized the need for a more inclusive, democratic, and accountable Security Council, reforming the international financial architecture and strengthening international cooperation to address emerging challenges, particularly the regulation of transformative technologies like artificial intelligence,” the foreign office added.


Pakistani forces kill 30 militants in restive province bordering Afghanistan

Updated 18 February 2025
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Pakistani forces kill 30 militants in restive province bordering Afghanistan

  • The deaths occurred during an intelligence-based operation in the volatile South Waziristan district
  • The development follows kidnapping of a traders’ union president and two Pakistan Customs officials

ISLAMABAD: Pakistani security forces have killed 30 militants in the northwestern Khyber Pakhtunkhwa (KP) province, the military said on Tuesday, amid a surge in militant violence in the restive region that borders Afghanistan.
Pakistan has struggled to contain a surge in militancy in the country, particularly in KP, since a fragile truce between the Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), and Islamabad broke down in November 2022.
The TTP and other militant groups have frequently targeted security forces convoys and check-posts, besides targeted killings and kidnappings of law enforcers and government officials in recent months.
The militants were killed during an intelligence-based operation in Sararogha area of KP’s South Waziristan district, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
“Sanitization operation is being conducted to eliminate any other Kharji [militant] found in the area,” the ISPR said in a statement.
The development came days after unidentified men kidnapped a traders’ union president and two Pakistan Customs officials in the district, according to local administration. While no group claimed responsibility for the kidnapping, TTP was suspected of involvement in it.
Islamabad has frequently blamed the surge in militant activities on Afghanistan, accusing it of sheltering and supporting militant groups that launch cross-border attacks. Afghan officials deny involvement and insist that Pakistan’s security issues are an internal matter of Islamabad.
The South Waziristan district, which borders Afghanistan, had been a stronghold of the TTP before successive military operations drove the militants out of the region more than a decade ago. Pakistan says TTP fighters have regrouped in the restive region in recent years.
 


Babar Azam says a lot has changed since last Champions Trophy, but Pakistan belief remains same

Updated 18 February 2025
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Babar Azam says a lot has changed since last Champions Trophy, but Pakistan belief remains same

  • Defending champions and hosts Pakistan will face New Zealand in the opening match in Karachi on Wednesday
  • Azam heads into the tournament as the world’s top ranked batter and his form will be crucial for Pakistan

KARACHI: Pakistan’s star batter Babar Azam has said that a lot has changed since they last played the Champions Trophy, but his side’s belief was still the same.
The statement by the former Pakistan skipper came a day ahead of defending champions and hosts Pakistan’s opening match against New Zealand in Karachi.
Babar hit 46 from 52 balls in the 2017 Champions Trophy final against India that helped Pakistan on their way to a 180-run win at The Oval.
However, the right-hander refuses to live in the past and wants to make more memories in front of the adoring Pakistani public in the coming weeks.
“I am very excited. My primary memories of the 2017 final are Fakhar Zaman’s innings [of 114], the spell of Mohammad Amir, Hasan Ali’s spell and the winning moment,” Azam was quoted as saying by the International Cricket Council (ICC).
“Playing against India, that excitement and the nervousness was there but when we won, we enjoyed and celebrated. [But] a lot has changed since the Champions Trophy was held in 2017. We have new players coming, we only have three or four players who were part of that winning team. But the belief, confidence and execution is the same.”
Pakistan-New Zealand clash on Wednesday will include two of biggest names in the competition, with Azam set to go head-to-head with Kiwi star Kane Williamson.
Joe Root, Steve Smith and Virat Kohli are part of the respective England, Australia and India squads but Azam stands in a league of his own in ODI cricket, heading into this competition as the world’s top ranked batter in the 50-over format.
“When you have responsibility as a senior player in any team and the team relies on you and has belief in you, then I take it in a positive way,” he said.
“I try to give my best in every match. I try to perform so that Pakistan win and I enjoy my cricket.”
His form will be crucial if Pakistan are to improve on their recent tournament record. They have been knocked out in the group stage at the last two ICC Men’s Cricket World Cups and suffered the same fate at last year’s ICC Men’s T20 World Cup after losing to co-hosts USA.
But Azam said he does not have any “pressure.”
“What has happened in the past is beyond us. We have discussed mistakes we have made and we have worked on them. So we will try not to do what we have done in the past,” he was quoted as saying.
Azam’s home city of Lahore is among the three Pakistani cities hosting matches and he believes local knowledge will help his side thrive.
“When you play at home you get that edge as you know the conditions,” he said. “You have a knowledge of how the pitch will behave, both in the first and second (innings), but still you have to play good cricket because all other teams are among the best.”


Pakistan offers over 70 offshore and onshore blocks to foreign investors for oil and gas exploration

Updated 18 February 2025
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Pakistan offers over 70 offshore and onshore blocks to foreign investors for oil and gas exploration

  • Pakistan, which imports most of its energy needs, is currently looking for ways to lessen the cost of power generation
  • The South Asian country is focusing on indigenization, electrification and liberalization to advance its energy sector

ISLAMABAD: Petroleum Minister Musadik Malik on Tuesday said that Pakistan was offering foreign investors 40 offshore and 31 onshore blocks for oil and gas exploration, Pakistani state media reported, as Islamabad pursues a multi-pronged strategy to advance the energy sector.
The statement by the petroleum minister came at the 30th Annual Technical Conference and Oil Show in Islamabad, which brought together experts, officials of regulatory bodies and industry stakeholders to discuss oil and gas exploration, and renewable energy resources.
Pakistan is currently focusing on indigenization, electrification and liberalization to advance the energy sector, and has identified Access to Energy, Provision of Affordable Energy and Sustainability of Energy as fundamental pillars of its strategy.
Speaking at the conference, Malik said a significant portion of Pakistan’s natural resources remained unexplored and invited international investors to capitalize on opportunities in these newly opened blocks, the state-run APP news agency reported.
“Pakistan is open for business and we will provide all necessary facilitation to investors,” the petroleum minister was quoted as saying.
Pakistan, which has been struggling with an economic crisis, imports most of its energy needs and is currently looking for ways to lessen the cost of power generation.
Malik said reducing energy prices for the underprivileged was one of the government’s top priorities and efforts were underway to increase local production.
“We are utilizing domestic resources for energy,” he said, adding that Pakistan possessed untapped shale and tight gas reserves.
The minister said the government was introducing a deregulation policy and aimed to open the oil sector under a price cap mechanism, stressing the importance of transitioning the sector to modern technology.
“Prosperity will not come by simply introducing one machine,” he said. “For sustainable growth, we must engage in science and research ourselves.”


Punjab CM lays foundation stone of 300-bed Saudi-German Hospital in Lahore

Updated 18 February 2025
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Punjab CM lays foundation stone of 300-bed Saudi-German Hospital in Lahore

  • $250 million hospital will be equipped with state-of-the-art medical equipment along international standards
  • The Saudi-German Hospital Network is a leading health care provider in UAE, Egypt, Yemen and Morocco

ISLAMABAD: Chief Minister of Pakistan’s most populous Punjab province, Maryam Nawaz Sharif, has laid the foundation stone for a 300-bed Saudi-German Hospital in Smart City, Lahore, which will cost $250 million, state television reported on Tuesday.
The Saudi-German Hospital Network, founded in 1988, is a leading private health care provider in the Middle East and North Africa region. It is operated by the Middle East Healthcare Company and spans Saudi Arabia, the United Arab Emirates, Egypt, Yemen, Morocco and Pakistan.
Known for advanced medical care in specialties like cardiology, neurology and oncology, the Saudi-German Hospital collaborates with top German institutions and integrates AI-driven solutions. The network continues to expand and meet growing health care demands with a reputation for cutting-edge technology and skilled professionals.
“Chief Minister Punjab Maryam Nawaz Sharif has laid the foundation stone of Saudi-German Hospital in Smart City Lahore,” Pakistan Television Corporation (PTV) reported. “The hospital will be a 300-bed medical facility and will be completed at a cost of $250 million.”
The hospital will be equipped with state-of-the-art medical equipment and provide international standard medical facilities, it said, adding that the project would be a “huge source of employment for the people.”
PTV quoted Sharif as saying that the government values the private sector’s commitment to bringing positive changes to the country’s health care system.
She called improving the health care system her “priority,” with the Saudi-German Hospital marking a key milestone in enhancing public health and establishing a welfare society, according to state media.
Earlier in February, the Saudi Fund for Development approved a $40 million grant to build the King Salman Hospital in Pakistan’s northwestern Khyber Pakhtunkhwa province.
Last August, the Saudi-German Hospital signed a partnership deal with the Capital Smart City in Islamabad.
Saudi Arabia has been a key ally of Pakistan, providing financial aid, oil subsidies and investments in sectors like energy and health care. The two nations share strong religious and cultural ties, with millions of Pakistani expatriates contributing to both economies. Their partnership is further strengthened through trade, defense cooperation and diplomatic support.