KARACHI: Prime Minister Shehbaz Sharif said on Thursday Pakistan was terminating purchase agreements with five independent power producers (IPPs) to rein in electricity tariffs as households and businesses buckle under soaring energy costs.
A decade ago, Pakistan approved dozens of private projects by independent power producers (IPPs), financed mostly by foreign lenders, to tackle chronic shortages. But the deals, featuring incentives such as high guaranteed returns and commitments to pay even for unused power, ultimately resulted in excess capacity after a sustained economic crisis slashed consumption.
Short of funds, the government has built those fixed costs and capacity payments into consumer bills, sparking protests by domestic users and industry bodies.
“After today, the take and pay system of these five IPPs has been finished, it has been completely terminated. The previous obligations of these IPPs will only be paid but without any financial cost, without any interest,” Sharif said in televised comments as he addressed the federal cabinet.
“This will benefit electricity consumers by Rs60 billion ($215 million) annually. As a result, the national treasury will save Rs411 billion ($1.4 billion).”
The PM said tariffs would be reduced gradually by revising agreements with other IPPs in the electricity sector also.
“Five IPP owners prioritized national interest over personal interest and voluntarily agreed to terminate these agreements with the government,” Sharif added.
In a notice to the Pakistan Stock Exchange, Pakistan’s biggest private utility, Hub Power Company Ltd, unveiled on Thursday the premature termination of its pact for the government to buy power from a southwestern generation project.
The government and market operator the Central Power Purchasing Agency (CPPAG) agreed to settle the company’s outstanding receivables up to Oct 1, the company said.
The company said its board approved an accelerated expiry date of Oct. 1 for the deal, instead of an initial date of March 2027, in an action taken “in the greater national interest.”
The need to revisit power deals was a key issue in talks for a critical staff-level pact in July with the International Monetary Fund (IMF) for a $7-billion bailout.
Pakistan has also begun talks on reprofiling power sector debt owed to China and structural reforms, but progress has been slow. It has also vowed to stop power sector subsidies.
With inputs from Reuters
PM says Pakistan terminating purchase agreements with 5 independent power producers
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PM says Pakistan terminating purchase agreements with 5 independent power producers
- Sharif says move will save $215 million per year for electricity consumers and $1.4 billion to the national treasury
- A decade ago, Pakistan approved dozens of motsly foreign-financed private projects by IPPs to tackle chronic shortages
Pakistani minister calls for regional cooperation on counterterrorism ahead of SCO summit
- Attaullah Tarar says Pakistan has lost 80,000 lives while fighting militancy to ensure peace across the world
- Information minister says the summit will also focus on climate change that impeded sustainable development
ISLAMABAD: Federal Minister for Information and Broadcasting Attaullah Tarar emphasized greater regional cooperation in counterterrorism on Thursday while addressing an event focused on the upcoming Shanghai Cooperation Organization (SCO) Summit, which will be held in Islamabad on October 15 and 16.
The issue of militant violence in Pakistan has cast a shadow over the high-profile summit, following the recent suicide attack in Karachi that killed two Chinese engineers, an act claimed by a Baloch separatist group.
Pakistan has repeatedly accused neighboring Afghanistan of harboring such militant factions, though the Taliban administration has denied these allegations.
The Pakistani government has also handed over summit security to the army and fortified Islamabad’s Red Zone, home to key government and diplomatic installations.
“Regional cooperation on counterterrorism and counterviolence is very important,” Tarar told the gathering, adding that the issue was discussed during the last SCO event in Astana, Kazakhstan.
He pointed out that Pakistan had paid a heavy price due to militant violence over the past few decades, consistently raising the issue in multilateral forums and bilateral dialogue with neighboring countries.
“We always highlight that we have lost 80,000 lives in this effort,” he added. “And this was not just for Pakistan but to ensure and maintain peace across the world.”
He said regional cooperation in counterterrorism would not only help Pakistan but also strengthen peace throughout the neighborhood.
Tarar noted that another issue to be discussed during the SCO summit is sustainable development, which, in Pakistan’s case, is threatened by climate change.
“Pakistan contributes less than one percent to global carbon emissions,” he noted. “But when it comes to climate change implications and losses, we are one of the worst-affected countries.”
He highlighted the losses incurred by the country due to floods, heatwaves, cyclones and other erratic weather events.
“Pakistan can greatly benefit from regional cooperation on this issue,” he continued.
The minister also emphasized the need for greater regional integration, pointing out that more could be done to increase Central Asian trade through Pakistani ports.
“There needs to be more financial integration to increase investment, trade and regional cooperation,” he noted.
“There is a need to promote cultural collaboration and people-to-people contact in the region,” he added. “I think that’s how we can take the people of the region toward prosperity.”
Tarar maintained it was a matter of honor for Pakistan to host a summit of this level after such a long time.
“Holding the SCO Summit at a time when Pakistan’s economy is taking off will further strengthen the country’s image and future prospects,” he said.
Pakistan at 23-1 after Brook triple hundred takes England to 823-7
- Brook and Root put on 454 for the fourth wicket as England piled up the fourth highest innings in Test cricket history
- Saim Ayub and Shan Masood were unbeaten on 13 and 10 respectively with Pakistan needing 244 to make England bat again
MULTAN: Pakistan were 23-1 at tea on the fourth day and fighting to avoid an innings defeat after Harry Brook’s 371 and Joe Root’s 262 propelled England to a mammoth 823-7 declared in the first Test on Thursday.
Brook and Root put on 454 for the fourth wicket as England piled up the fourth highest innings in Test cricket history before Chris Woakes bowled opener Abdullah Shafique with the first ball of their second innings.
Saim Ayub and captain Shan Masood — dropped twice by England fielders — were unbeaten on 13 and 10 respectively with Pakistan still needing 244 to make England bat again.
Brook and Root enjoyed a run-feast on a flat Multan stadium pitch, both knocking career-best scores to give England a 267 lead over Pakistan’s first innings total of 556.
Brook completed his triple century with a boundary off part-timer Ayub, reaching the mark off 310 balls before he top-edged a sweep off the same bowler and was caught by Masood.
Brook cracked 29 fours and three sixes in his 439-minute stay at the crease.
But Root — who broke Alastair Cook’s England Test run record of 12,472 on Wednesday — fell short of a triple hundred as he was trapped leg-before by Salman Agha after a marathon 10 hour-stay suring which he hit 17 fours.
The Root-Brook stand of 454 was England’s highest in Tests, eclipsing the 411-run fourth wicket partnership by Peter May and Colin Cowdrey against the West Indies at Birmingham in 1957.
It is also the fourth highest partnership in Test cricket history.
Ayub (2-101) and Naseem Shah (2-157) were the most successful Pakistan bowlers.
England resumed on 492-3 in the morning and looked for quick runs, which Root and Brook provided despite Pakistan’s defensive leg-side bowling, adding 166 runs in 29 overs in the session.
Root’s previous best of 254 was also against Pakistan at Manchester in 2016.
Brook was equally dominant, hitting 20 boundaries and a six in his maiden Test double hundred, which came off just 245 balls.
His previous best was 186, scored against New Zealand at Wellington last year.
Pakistan’s only chance came in the first hour when Root, on 186, failed to keep down a pull shot off Shah but Babar Azam shelled the regulation chance at mid-wicket.
Root took full advantage and with a single off spinner Agha Salman completed his sixth Test double-century, which came in 517 minutes off 305 balls.
Pakistan were without frontline spinner Abrar Ahmed who suffered a fever and did not take the field on Thursday.
Pakistan’s biggest private utility says government power deal ends prematurely
- Hub Power Company says board approved an accelerated expiry date of Oct. 1 for the deal instead of an initial date of March 2027
- Step comes after Power Minister Awais Leghari said government was re-negotiating deals with independent producers to rein in electricity tariffs
KARACHI: Pakistan’s biggest private utility, Hub Power Company Ltd, unveiled on Thursday the premature termination of a pact for the government to buy power from a southwestern generation project.
The government and market operator the Central Power Purchasing Agency (CPPAG) agreed to settle the company’s outstanding receivables up to Oct 1, it told the Pakistan Stock Exchange in a notice.
The step comes after Power Minister Awais Leghari told Reuters last month the government was re-negotiating deals with independent producers to rein in electricity tariffs as households and businesses buckle under soaring energy costs.
The company said its board approved an accelerated expiry date of Oct. 1 for the deal, instead of an initial date of March 2027, in an action taken “in the greater national interest.”
A decade ago, Pakistan approved dozens of private projects by independent power producers (IPPs), financed mostly by foreign lenders, to tackle chronic shortages.
But the deals, featuring incentives such as high guaranteed returns and commitments to pay even for unused power, ultimately resulted in excess capacity after a sustained economic crisis slashed consumption.
Short of funds, the government has built those fixed costs and capacity payments into consumer bills, sparking protests by domestic users and industry bodies.
The need to revisit power deals was a key issue in talks for a critical staff-level pact in July with the International Monetary Fund (IMF) for a $7-billion bailout.
Pakistan has begun talks on reprofiling power sector debt owed to China and structural reforms, but progress has been slow. It has also vowed to stop power sector subsidies.
Saudi Arabia condemns Karachi attack that killed two Chinese nationals
- The bombing was the latest in a string of attacks against Chinese nationals in Pakistan
- A March suicide bombing killed five Chinese engineers working on a hydropower project
ISLAMABAD: Saudi Arabia on Thursday condemned a militant attack near the international airport of the southern Pakistani city of Karachi in which two Chinese nationals were killed last week.
The attack on Sunday was claimed by separatist militant group Baloch Liberation Army (BLA) which said it had used a vehicle-borne improvised explosive device to target the Chinese nationals, including engineers.
“The embassy condemns the attack by Saudi Arabia which took place near the Karachi Airport in which several people, including citizens of the People’s Republic of China, were killed and injured,” Riyadh’s embassy in Islamabad said on X.
The bombing was the latest in a string of attacks against Chinese nationals in Pakistan over the last four years, including a March suicide bombing that killed five Chinese engineers working on a hydropower project.
Beijing called on Islamabad to implement more stringent security measures.
BLA, the largest of several ethnic insurgent groups that has fought the federal government for decades, targets Chinese interests — including the strategic port of Gwadar on the Arabian Sea — as it accuses Beijing of helping Islamabad exploit local resources. It has previously killed Chinese citizens and attacked China’s consulate in Karachi.
The port development is part of Beijing’s $65 billion investment in road, rail and infrastructure building under President Xi’s Belt and Road Initiative (BRI).
With inputs from Reuters
Pakistani religious affairs ministry announces scholarships for non-Muslim students
- Non-Muslim students studying in government institutions with more than 50 percent marks eligible to apply
- Approximately $210,000 has been allocated for scholarships this financial year, ministry spokesman says
ISLAMABAD: Pakistan’s Religious Affairs Ministry on Thursday announced scholarships for non-Muslim students, aiming to enhance educational opportunities and support for minority communities who form less than five people of the population of the South Asian nation.
The government promotes educational inclusivity for non-Muslim students through various scholarship programs such as the Prime Minister’s Minority Scholarship Scheme and the Pakistan Minorities Scholarship Program. These initiatives provide financial assistance including tuition fees, stipends, book allowances, and travel grants to eligible students from minority communities.
The scholarships are awarded based on academic merit, financial need, and citizenship, enabling many students each year to pursue higher education.
“The Ministry of Religious Affairs has announced educational scholarships for non-Muslim students,” a spokesman for the religious affairs ministry said on Thursday. “Applications for this financial year’s scholarships will be submitted online through the ministry’s website.”
Approximately $210,000 (Rs60 million) have been allocated for the scholarships this financial year, he added.
Students will be required to provide an income certificate, educational institution verification and joint bank account details, the spokesman said, adding that only non-Muslim students studying in government institutions who had scored at least 50 percent marks would be eligible for the scholarships.
An advertisement published by the religious affairs ministry highlighted that an eligible candidate’s parent’s income must not exceed $259. Private institute students or students receiving any kind of financial assistance or stipend from any other source would not be eligible for the scholarship. It also advised students to apply within 30 days of the advertisement’s publication.
