KARACHI: Pakistan is renegotiating contracts with independent power producers to rein in “unsustainable” electricity tariffs, the head of the power ministry said, as households and businesses buckle under soaring energy costs.
Rising power tariffs have stirred social unrest and shuttered industries in the $350 billion economy, which has contracted twice in recent years as inflation hit record highs.
“The existing price structure of power in this country is not sustainable,” Awais Leghari, a federal minister heading Pakistan’s Power Division, told Reuters in an interview on Friday.
He said discussions were under way between power producers and the government because “there is a clear understanding on both sides that the status quo can’t be maintained.”
Leghari stressed that all stakeholders would have to “give in to a certain point” — though without compromising completely on business sustainability — and this would have to be done “as soon as possible.”
Faced with chronic shortages a decade ago, Pakistan approved dozens of private projects by independent power producers (IPPs), financed mostly by foreign lenders. The incentivized deals included high guaranteed returns and commitments to even pay for unused power.
However, a sustained economic crisis has slashed power consumption, leaving the country with excess capacity that it needs to pay for.
Short of funds, the government has built those fixed costs and capacity payments into consumer bills, sparking protests by domestic users and industrial associations.
Four sources in the power sector told Reuters changes to contracts demanded included slashing guaranteed returns, capping dollar rates and moving away from paying for unused power. The sources requested anonymity as they were not authorized to speak to the media.
On Saturday, local media outlet Business Recorder said in a report citing sources that 24 conditions have been proposed for the transition of capacity-based model to take-and-pay model.
However, Leghari told Reuters that no new draft agreements or specific demands had been officially sent to power companies and said the government would not force them to sign new watered down contracts.
“We would sit and talk to them in a civil and professional manner,” he said, adding that the government has always maintained contractual obligations to investors, both foreign and local. He said contract revisions would be by “mutual consent.”
Energy sector viability was the focus of a critical staff level pact in May with the International Monetary Fund (IMF) for a $7 billion bailout. The IMF’s staff report stressed the need to revisit power deals.
Pakistan has already initiated talks on reprofiling power sector debt owed to China as well as negotiations on structural reforms, but progress has been slow. Pakistan has also committed to stop power sector subsidies.
Leghari said current rates were not affordable for domestic or commercial consumers and this was hurting growth because power prices were no longer regionally competitive, putting critical exports at a disadvantage.
He said the aim was to bring tariffs down to 9 US cents per unit for commercial users from about 28 cents currently.
Pakistani minister says government renegotiating power deals to cut electricity tariffs
https://arab.news/76fj4
Pakistani minister says government renegotiating power deals to cut electricity tariffs
- Energy sector viability has been the focus of a critical staff level pact with the IMF for a $7 billion bailout
- Awais Leghari says government wants to bring down tariffs from 28 cents to 9 cents for commercial users
Pakistan to press developed nations for unconditional climate funding at COP29
- Pakistan is ranked as the 5th most vulnerable country to climate change, according to the Global Climate Risk Index
- Pakistan PM’s aide Romina Khurshid Alam says vulnerable countries are suffering from their own economic challenges
ISLAMABAD: Pakistan will urge developed countries attending the upcoming Conference of the Parties (COP29) in Baku to fulfill their pledges and provide easy access to climate funding without attaching conditions, Prime Minister Shehbaz Sharif’s coordinator on climate change said on Thursday.
The COP29 climate conference, scheduled to take place in Baku between November 11 and 22, will layout new policies and bring together representatives from various nations to discuss the adverse impacts of climate change and evaluate available solutions for adaptation.
Pakistan is ranked as the 5th most vulnerable country to climate change, according to the Global Climate Risk Index. In 2022, devastating floods affected over 33 million people and caused economic losses exceeding $30 billion, highlighting the country’s high susceptibility to extreme weather events.
“Pakistan is very clear on our stance that we need all the developed countries when it comes to the pledges, one, they need to complete their pledges, they need to fulfil their pledges, and two, easy access toward the fundings,” Romina Khurshid Alam, PM Sharif’s coordinator on climate change, told Arab News in an exclusive interview.
Due to the rising temperatures, extreme climatic phenomena, including floods, droughts, cyclones, torrential rainstorms and heatwaves, have been occurring more frequently and with greater intensity across Pakistan.
The South Asian country is among the most severely threatened countries in terms of climate–induced challenges, especially in the context of its dependency on climate-sensitive sectors such as agriculture, water, natural resources and the environment, and socio-economic issues such as poverty. The country’s adaptation to the adverse impacts of climate change is inevitable and likely to become critical in the future.
Alam said vulnerable countries were suffering from their own economic challenges and vulnerabilities, while at the same time, many countries faced additional restraints on climate funding.
“It’s not fair that we always get demands to ‘do more and to do this, to do that, these sanctions are coming,’ that is something which is on the human rights violation as well,” she said, adding that Pakistan wanted to raise its voice on what happened to the pledges, how many countries benefited from them and what straightforward mechanisms could be pursued to provide effective support.
Asked about the total amount pledged by developed nations, Alam said she would provide the exact figure after COP29, but noted that “the number is very low.”
“At COP29, we are talking about the data bank system like in a way that what countries are suffering and looking forward for the carbon credits policies,” she added.
Last month, Pakistan proposed the establishment of a regional climate data bank to help Vulnerable Twenty (V20) group of countries prepare an evidence-based response to climate disasters.
Alam said the South Asian country had planned “many things” to showcase at Pakistan Pavilion during COP29.
Speaking about the prevailing smog issue, she said Pakistan would take it up with the Indian team at COP29.
“We are open to dialogues and open to come up with the solution, we want to get the things done by dialogue,” she said, noting that the chief minister of Pakistan’s Punjab, Maryam Nawaz, had also urged India to sit together to resolve this issue.
“CM Punjab very clearly said that ‘let’s sit together to sort out this issue because this cannot be done in a way that we are not doing this or you are doing this’,” Alam said.
“This is not a game, the main thing is to think about the children and to think about the future.”
Winter smog has become an annual crisis in Pakistan’s Punjab, particularly the provincial capital of Lahore, with air quality deteriorating to hazardous levels each season. The city consistently ranks among the world’s worst for air pollution, leading to a significant rise in respiratory issues and hospital admissions, especially affecting children and the elderly.
Last year, severe pollution levels prompted a surge in cases of asthma, lung infections and other respiratory problems among residents, according to media reports.
The problem this week prompted Punjab CM Nawaz to propose cross-border cooperation with Indian authorities to tackle shared pollution sources, such as crop residue burning, which exacerbate the region’s smog problem.
Pakistan PM performs groundbreaking of first private sector university in Gilgit-Baltistan
- Ramday University is being built by a trust with construction set to complete by donations from overseas Pakistanis
- Home to some of the world’s tallest mountains, semi-autonomous GB region is among Pakistan’s least developed areas
ISLAMABAD: Prime Minister Shehbaz Sharif this week laid the foundation stone of first private sector university in Gilgit-Baltistan (GB), promising a bright future for the youth of the remote mountainous region.
Home to some of the tallest mountains in the world, the semi-autonomous GB region is counted among the least developed areas administered by Pakistan.
Ramday University is located in Thagos area of GB’s Ghanche district at an altitude of 11,000 feet. The university is being built on a 200-kanal area of land under a trust, with construction set to be completed through the donations of overseas Pakistanis, the state-run Associated Press of Pakistan reported.
GB-based news portal Pamir Times said the university will offer specialized programs in environmental studies, climate change, hydrology and mineral studies subjects.
“The establishment of an institution of higher learning in a remote area like Ghanche in Gilgit-Baltistan is highly encouraging,” Sharif was quoted as saying on by the APP during the groundbreaking ceremony in Islamabad on Thursday.
The prime minister congratulated former Supreme Cour judge Khalil ur Rehman Ramday on establishing the university.
“He expressed his confidence that this university, located at an altitude of 11,000 feet in Thagos, will reach the peak of modern knowledge and research standards,” the APP said.
Sharif stressed that GB’s development and the welfare of its people were among the government’s top priorities.
The development takes place a day after Sharif visited the mountainous northern region, where he inaugurated a model village for flood-affected families during a day-long visit to Ghizer.
There, Sharif pledged to provide residents with ownership documents to help them acquire new houses that were destroyed by the 2022 floods.
Father accused of murder of British-Pakistani girl blames stepmother
- Sara Sharif was found dead in her bed in southwest of London in Aug. 2023 with injuries including broken bones, burns
- Her father, Urfan Sharif, had fled to Pakistan a day before the body was found, along with his wife and the girl’s uncle
LONDON: The father of a 10-year-old British-Pakistani girl on Thursday denied her murder and instead blamed the girl’s stepmother, calling her “evil” and “psycho.”
Sara Sharif was found dead in her bed in Woking, southwest of London, on August 10, 2023 with injuries including broken bones, burns and bite marks.
Her father, Urfan Sharif, 42, had fled to Pakistan a day before the body was found, along with his wife Beinash Batool, 30, and the girl’s uncle, Faisal Malik, 29.
Sharif then called police in the UK shortly after arriving in Islamabad and said he had “beat her up too much.” During the trial, Sharif said he made up this and another confession to “protect my family.”
All three adults were arrested upon their return to the UK a month later. They deny charges of murder and allowing the death of a child.
Details of the extent of Sara’s injuries have been detailed at London’s Old Bailey court, including claims from Batool that Sharif would beat his daughter badly.
Giving evidence for a third day, Sharif admitted slapping Sara “multiple times” but denied beating, burning, or biting her, insisting that he was “never at home” when she was injured.
Sharif broke down when his lawyer, Naeem Mian, questioned him about beating Sara, who was home schooled, with a cricket bat.
The taxi driver denied burning his daughter with an iron and instead said he was “made to” slap Sara by Batool, who constantly accused the girl of behaving badly.
Pointing to Batool sitting in the dock, Sharif shouted: “I should not have believed her... I didn’t realize I’m living with evil and a psycho.”
He also suggested that Batool was the one who bit her “like an animal.”
The jury was previously told that Sharif and Malik had provided their dental impressions but Batool had refused.
“I didn’t do it. Faisal didn’t do it. Who else was at home?” Sharif said.
He denied ever being aware of Sara being in pain. “She never told me that,” he said and indicated that he did not see injuries because Sara wore full-sleeve tops and long bottoms as well as a hijab head covering.
In the month leading up to Sara’s death, Mian said Sharif was out of the house at work from early in the morning to late at night while holing frequent telephone conversations with Batool, who would largely be at home.
Sharif wept as he recalled a time he came home and saw that Sara’s hands had been tied behind her back with brown packaging tape, accusing Batool of the act.
Asked why he did not call the police or ask Batool to leave, Sharif said that his wife was “manipulative” and that he believed her apology.
“I have been an idiot,” he added.
Forensic evidence shown to court included bundles of packaging tape and a white plastic carrier bag fashioned into a hood that could have been used on Sara’s head.
The bag had packaging tape stuck to it as well as long, brown hairs that matched Sara’s DNA, the court was told.
Both the bag and the non-sticky side of the tape had fingerprints that matched Sharif’s, who denied fashioning a hood out of the plastic bag or using it on Sara.
He said the fingerprints could be a result of him handling the items while sorting the garbage.
Sharif had previously accused Batool of being abusive toward him and preventing him from asking Sara about how she obtained her injuries.
In 2022, Batool texted her sister that Sharif had suggested using make-up to cover up bruises after beating Sara, to which the sister replied: “LOL it was going to happen you can tell.”
In the days before her death, Sharif said Sara, who did chores around the house, had asked him to “not go to work.”
Pakistan win toss, bowl in 2nd ODI against Australia
- The hosts lead 1-0 after a tense two-wicket win in Melbourne on Monday
- Pakistan named unchanged side with fast bowler Naseem Shah declared fit
ADELAIDE: Pakistan skipper Mohammad Rizwan won the toss and opted to bowl in the second of a three-game one-day series against Australia in Adelaide on Friday.
The hosts lead 1-0 after a tense two-wicket win in Melbourne on Monday.
Pakistan named an unchanged side with fast bowler Naseem Shah declared fit after leaving the field during the first match, apparently with cramp.
Australia made one change with veteran Josh Hazlewood returning in place of Sean Abbott to join his long-time pace partners Pat Cummins and Mitchell Starc.
Jake Fraser-McGurk and Matt Short again open the batting in the absence of Mitchell Marsh and Travis Head and will be keen to make their mark after falling cheaply in the opening match.
Teams
Australia: Matt Short, Jake Fraser-McGurk, Steve Smith, Josh Inglis, Marnus Labuschagne, Glenn Maxwell, Aaron Hardie, Pat Cummins (capt), Mitchell Starc, Adam Zampa, Josh Hazlewood
Pakistan: Saim Ayub, Abdullah Shafique, Babar Azam, Mohammad Rizwan (capt), Kamran Ghulam, Agha Salman, Irfan Khan, Shaheen Shah Afridi, Naseem Shah, Haris Rauf, Mohammad Hasnain
Pakistani firms bank on clinching ‘significant deals’ after debuting at Gulfood Manufacturing 2024
- Around 29 Pakistani firms participated in Gulfood Exhibition 2024 from Nov. 5-7 in Dubai
- Pakistani exhibitors say visitors from Middle East showed keen interest in their products
ISLAMABAD: After participating for the first time at the renowned Gulfood Manufacturing 2024 event in Dubai this week, Pakistani exhibitors on Thursday hoped the experience would help them clinch “significant deals” to penetrate markets in the Middle East.
Since 2014, Gulfood Manufacturing has been advancing the global food processing sector through innovation. This year, more than 1,200 suppliers from over 60 countries participated in the event held in Dubai from Nov. 5-7.
In a first, 21 Pakistani exhibitors took part in the tenth edition of the food and beverages trade fair under the Trade Development Authority of Pakistan’s (TDAP) umbrella.
Eight other Pakistani companies participated independently to showcase food ingredients, processing, packaging, printing, labeling, and supply chain solutions for the food and beverage industry.
Abdul Wahab, director of the Faisalabad-based food packaging machine manufacturer Nadeem Engineering Company, said businesses from across the Middle East showed keen interest in his organization’s machinery and other products.
“Our competitive prices and high quality helped initiate many business deals, which we hope to finalize in the coming weeks,” Wahab told Arab News.
Wahab thanked the Pakistani mission in the UAE and TDAP for their support, saying it enabled them to create more business opportunities.
“We are optimistic about securing a few significant deals that will help us enter the vast Gulf market,” he added.
A dedicated Pakistan Pavilion at the trade fair helped Pakistani firms showcase their products to visitors from across the globe.
Sheikh Abdul Qayyum, the chief executive officer of the Karachi-based company Lunwa Biz Packaging, praised the Pakistan Pavilion Initiative by saying that it helped generate a “good response” from visitors.
“Some good deals and memorandums of understanding have been signed, and we are working to bring them to final maturity,” Qayyum told Arab News. He said his company hoped to achieve positive results and generate substantial revenue from these agreements.
“We received support from the TDAP, which made the booth valued at Rs2.5 million available to us for Rs0.7 million, allowing us to make efforts to utilize this opportunity,” Qayyum said.
Faraz Tayyab, the project manager of Dubai-based company Menras who designed and managed the Pakistan Pavilion, said over 100,000 people visited Pakistani stalls while exhibitors reported an excellent response for their products.
“One machine manufacturer even sold his display unit and signed a deal to send additional machines to the Dubai-based buyer from Pakistan,” Tayyab told Arab News.
Although it was their first time participating, Tayyab said Pakistani companies have made an impressive impact and will benefit greatly from this experience.
“It has opened the gateway for a bigger participation next year,” he said.
