KARACHI: A group of prominent businessmen this week urged the government to review contracts with independent power producers, in the wake of a crisis over record electricity prices that has fueled nationwide protests and traders strikes since last month.
IPPs are private, non-utility generator companies that produce electricity and sell it to the government and end users. Among major criticisms of IPP contracts is that they require the government to make capacity payments even when power generated by them is not fully utilized. Experts say the arrangement leads to a high cost of electricity which augments the production costs of factories and industrial units. IPPs have also been accused of making exorbitant profits and dividends on capital invested under existing contracts.
Speaking to reporters earlier this week, Caretaker Prime Minister Anwaar-ul-Haq Kakar acknowledged problems with IPP contracts when questioned about record electricity bills that have led to nationwide protests. He said the government was “thoroughly discussing” renegotiating the contracts among the various options it was considering in response to the unrest.
“We request the government not to revise the agreements with the IPPs on old terms,” Mirza Akhtar Baig of the United Business Group said at a news conference in Karachi on Wednesday. “We should not renew contracts with them on old terms.”
Baig said under the contracts, the government had been paying capacity surcharges to IPP companies, which he said even exceeded the country’s defense budget.
Representatives from the Power Division told Senate last week capacity payments to IPPs for the current fiscal year had reached a staggering Rs1.3 trillion. Over the years, IPPs have also been accused of over invoicing and misreporting, and experts and politicians have called for a heat rate audit.
At Wednesday’s press conference, the business group also requested the government to put the names of all domestic and foreign IPPs owners on the exit control list to probe irregularities in the power generation sector.
“At present, Pakistani industries are facing problems due to our declining national economy,” Khalid Tawab, another influential businessman at the press conference, said. “Traders and industrialists are all worried because of the electricity bills. Forty percent of industries have been closed in Pakistan.”
Kakar’s government has also announced it is trying to bring down electricity tariffs, and blamed electricity theft for the revenue shortfall of Rs589 billion ($1.9 billion) in the power sector annually.
Interim energy minister, Muhammad Ali, said this week the government was setting up a task force to crackdown against those stealing electricity or not paying bills on time.
An electricity price hike was agreed with the IMF earlier this year when the international lender approved a short-term $3 billion bailout package for Pakistan.
Pakistani businesses demand new contracts with independent power producers amid electricity bills crisis
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Pakistani businesses demand new contracts with independent power producers amid electricity bills crisis
- PM Kakar this week acknowledged problems with IPP contracts, said “thoroughly discussing” renegotiating
- Pakistan has been in the grips of sporadic protests and strikes since last month over record electricity bills
At least 1.2 million Afghans forced to return from Iran and Pakistan this year — UN
- Iran has deported over 366,000 Afghans this year, with the 12-day war increasing departures
- Pakistani officials have set a June 30 deadline for nearly 1.3 million Afghan nationals to leave
ISLAMABAD: At least 1.2 million Afghans have been forced to return from Iran and Pakistan this year, the UN refugee agency said Saturday, warning that repatriations on a massive scale have the potential to destabilize the fragile situation in Afghanistan.
Iran and Pakistan in 2023 launched separate campaigns to expel foreigners they said were living in the country illegally. They set deadlines and threatened them with deportation if they didn’t leave. The two governments deny targeting Afghans, who have fled their homeland to escape war, poverty or Taliban rule.
The UN high commissioner for refugees said that of the 1.2 million returning Afghans, more than half had come from Iran following a March 20 government deadline for them to leave voluntarily or face expulsion.
Iran has deported more than 366,000 Afghans this year, including refugees and people in refugee-like situations, according to the agency.
Iran’s 12-day war with Israel also has driven departures. The highest number of returns was on June 26, when 36,100 Afghans crossed the border in one day.
“Afghan families are being uprooted once again, arriving with scant belongings, exhausted, hungry, scared about what awaits them in a country many of them have never even set foot in,” said Arafat Jamal, the UNHCR representative in the Afghan capital, Kabul.
He said women and girls are particularly worried, as they fear the restrictions on freedom of movement and basic rights such as education and employment.
More than half Afghanistan relies on humanitarian assistance. But opposition to Taliban policies and widespread funding cuts are worsening the situation, with aid agencies and nongovernmental organizations cutting back on basic services like education and health care.
IRAN URGES FOREIGNERS TO LEAVE QUICKLY
Iran’s attorney general, Mohammad Movahedi Azad, said Saturday that foreigners in the country illegally should leave as soon as possible or face prosecution, state media reported.
“Foreign nationals, especially brothers and sisters from Afghanistan whom we have hosted for years, help us [so] that illegal individuals leave Iran in the shortest period,” the official IRNA news agency quoted Azad as saying.
Iranian authorities said in April that out of more than 6 million Afghans, up to 2.5 million were in the country illegally.
Iran’s top diplomat in Kabul, Ali Reza Bikdeli, visited the Dogharoun border crossing with Afghanistan and promised to facilitate the repatriation of Afghans, state TV reported.
Iranians have complained about the increasing presence of Afghans in recent months, with some accusing them of spying for Israel since the outbreak of the war.
TALIBAN PLEDGE AMNESTY
Earlier this month, on the religious festival of Eid Al-Adha, the Taliban prime minister said all Afghans who fled the country after the collapse of the former Western-backed government were free to return, promising they would be safe.
“Afghans who have left the country should return to their homeland,” Mohammad Hassan Akhund said in a message on X. “Nobody will harm them. Come back to your ancestral land and live in an atmosphere of peace.”
On Saturday, a high-ranking ministerial delegation traveled to western Herat province to meet some of the Afghans returning from Iran.
The officials pledged “swift action to address the urgent needs of the returnees and ensure that essential services and support are provided to ease their reintegration,” according to a statement from the Taliban deputy spokesman Hamdullah Fitrat on X.
People get food, temporary accommodation and access to health care upon their return, said Ahmadullah Muttaqi, the director of information and culture in Herat. Everyone receives 2,000 Afghanis, or $28.50, in cash and is taken free of charge to their home provinces.
“Upon arrival, they are housed in designated camps until permanent housing is arranged, as residential townships are currently under construction in every province for them,” he told The Associated Press.
Meanwhile, Pakistani authorities have set a June 30 deadline for some 1.3 million Afghans to leave. Pakistan aims to expel a total of 3 million Afghans this year.
Pakistan army chief hails cadets from Arab and allied nations at Naval Academy graduation
- Among the 127 graduating midshipmen were 19 cadets from Bahrain, four from Iraq and two from Palestine
- The army chief says Pakistan’s response to India standoff showed armed forces ready to defend the country
ISLAMABAD: Pakistan’s army chief, Field Marshal Asim Munir, on Saturday hailed the presence of cadets from Arab and allied countries at a Naval Academy graduation ceremony, saying it reflected the high standard of training the country offers to its military partners.
The commissioning parade, held in Karachi, marked the completion of the 123rd Midshipmen and 31st Short Service Commission courses.
Among the 127 graduating midshipmen were 19 cadets from Bahrain, four from Iraq and two from the State of Palestine, with additional participants from the Republic of Djibouti and the Republic of Türkiye.
“The Pakistan Naval Academy has consistently provided excellent professional training to cadets from allied nations,” the army chief said, according to a statement issued by the military’s media wing, Inter-Services Public Relations (ISPR).
“The presence of cadets from Bahrain, Iraq, the State of Palestine, the Republic of Djibouti and the Republic of Türkiye in today’s commissioning parade is a reflection of the Academy’s high training standards,” he added.
Pakistan regularly trains cadets and officers from partner nations and sends its own officers abroad to institutions in countries such as the United States and the United Kingdom for advanced military education and joint training.
The ceremony was attended by senior officials from Pakistan and other countries, government representatives and families of the graduating cadets.
In his remarks, the army chief also praised the Navy’s professionalism and its efforts as a regional maritime force committed to securing international sea lines of communication.
He also referenced the recent standoff with India, saying the country’s armed forces had “responded swiftly and decisively against a numerically superior enemy,” and were fully prepared to defend Pakistan’s sovereignty.
Pakistan army chief vows retribution as 13 soldiers killed in militant attack in northwest
- Armed forces say 14 militants were killed in a firefight during a clearance operation after the convoy attack
- Field Marshal Asim Munir vows to avenge innocent Pakistani lives and respond swiftly to militant violence
KARACHI: Pakistan’s army chief, Field Marshal Asim Munir, on Saturday vowed retribution after 13 soldiers were killed in a suicide bombing on an armed forces convoy in the country’s northwestern tribal belt, in one of the deadliest attacks on security personnel in recent months.
The military said the convoy was targeted in Mir Ali, a town in North Waziristan near the Afghan border, when an explosives-laden vehicle rammed into one of the lead vehicles after a failed attempt by a suicide bomber to detonate earlier.
Three civilians, including two children and a woman, were also injured in the blast.
Militant violence has surged in northwestern Khyber Pakhtunkhwa province in recent years, particularly in the tribal region, where attacks have targeted soldiers, police, government officials and civilian residents.
Saturday’s assault marked one of the highest single-day tolls for security forces this year. The military said it was followed by the killing of 14 militants in a firefight during a clearance operation launched by the security forces.
“Field Marshal Syed Asim Munir … visited Corps Headquarters Peshawar today, where he was briefed in detail on the prevailing security situation and ongoing counter-terrorism operations,” the military’s media wing, Inter-Services Public Relations (ISPR), said in a statement. “During the visit, the Field Marshal also attended funeral of Shuhada [martyrs] of the incident at Bannu Garrison and visited the injured at Bannu CMH [Combined Military Hospital].”
“Reiterating the state’s uncompromising stance, the Chief of Army Staff vowed that all facilitators, abettors, and perpetrators of terrorism will be relentlessly pursued and brought to justice— without exception and at all costs, and the face of true perpetrator of terrorism in the region will be exposed to the entire world,” the statement added.
Most militant attacks in Khyber Pakhtunkhwa have been claimed by fighters belonging to the Tehreek-e-Taliban Pakistan (TTP), an umbrella group of armed factions that the Pakistani state refers to as khawarij — a term rooted in Islamic history used to describe a violent extremist sect that rebelled against authority and declared other Muslims as apostates.
The army described the assault as a “cowardly attack planned and orchestrated by the terrorist state of India” and executed by its “proxy Fitna Al-Khawarij.”
It said Pakistani forces intercepted the initial suicide bomber, but the attackers rammed a second explosive-laden vehicle into the convoy, killing 13 soldiers.
“The blood of every innocent Pakistani shall always be avenged,” the ISPR quoted the army chief as saying. “Any attempt to undermine Pakistan’s internal stability will be met with swift and decisive retribution.”
He also called for increased institutional support for civilian law enforcement agencies, particularly the Khyber Pakhtunkhwa Police, urging government stakeholders to prioritize capacity enhancement while reaffirming the army’s commitment to assist.
In a separate statement, Prime Minister Shehbaz Sharif condemned the attack, offering prayers for the fallen soldiers and condolences to their families. He praised the security forces for their response, including the killing of 14 militants, and said the entire nation saluted its martyrs.
“We are determined to eliminate every form of terrorism from the country,” Sharif said.
Pakistan plans to finalize Roosevelt Hotel privatization structure at next cabinet committee meeting
Pakistan plans to finalize Roosevelt Hotel privatization structure at next cabinet committee meeting
- Privatization Commission denies reports claiming a $100 million base price has been set for the hotel
- It points out the deal’s value will depend on the government-approved transaction structure, final terms
KARACHI: Pakistan is expected to finalize the transaction structure for the privatization of the Roosevelt Hotel in New York at the next meeting of the Cabinet Committee on Privatization, the government said in a statement on Saturday.
Located in Midtown Manhattan, the hotel is owned by Pakistan International Airlines Investment Limited (PIAIL) and occupies a full city block on Madison Avenue and 45th Street. It has also remained one of Pakistan’s most high-profile yet politically sensitive overseas assets.
“The base price and expected proceeds from the privatization of the Roosevelt Hotel will depend on the transaction structure and final terms approved by the government,” the Privatization Commission said in an official handout. “The transaction structure is expected to be finalized at the next meeting of the Cabinet Committee on Privatization.”
The statement informed no base price had yet been set for the property, rebutting some local media reports that claimed the government had fixed a $100 million floor.
It also pointed out such a value could only be determined at the time of bidding, adding that the deal’s potential value would depend on the transaction structure and final terms approved by the cabinet committee.
Over the past two decades, successive Pakistani governments have floated plans to sell, lease or redevelop the property, but no proposal has advanced beyond early-stage planning.
Earlier this month, Muhammad Ali, the prime minister’s adviser on privatization, told Arab News that the government had completed the hotel’s baseline valuation and appointed US-based consultancy JLL to conduct market sounding.
“We just need to get approval from the cabinet committee on the structure, and we’ll move ahead,” he said.
Pakistan tops global emerging market rankings in sovereign risk improvement — Bloomberg Intelligence
Pakistan tops global emerging market rankings in sovereign risk improvement — Bloomberg Intelligence
- Government calls the development ‘a resounding signal’ to investors about Pakistan’s improving economy
- It attributes the new outlook to economic stabilization, structural reforms and successful IMF engagement
KARACHI: Pakistan has recorded the world’s sharpest decline in sovereign default risk over the past year, topping Bloomberg Intelligence’s Global Emerging Market (EM) Rankings for credit risk improvement, according to new data cited by a senior finance official on Saturday.
The data, published by Bloomberg’s research arm, showed that Pakistan’s credit default swap-implied probability of default fell from 59 percent to 47 percent over the past 12 months, a drop of 11 percentage points. The change marks the biggest reduction among tracked emerging markets, outpacing countries like Argentina, Tunisia and Nigeria, as default risk rose in others such as Egypt, Gabon and Turkiye.
Credit default swaps (CDS) are insurance-like financial contracts that allow investors to hedge against the risk of a government failing to repay its debt. Issued and traded by large financial institutions, these contracts pay out in the event of a default. The higher the cost of a CDS, the greater the perceived risk. Bloomberg Intelligence uses CDS pricing to assess a country’s sovereign risk in its Global EM Rankings.
“Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk,” said Khurram Schehzad, adviser to the finance minister, in a social media post. “This is a resounding signal to global investors: Pakistan is not only back on the map— it is moving forward with stability, credibility, and reform at its core,” he added.
Bloomberg Intelligence is a highly regarded financial data and media company widely used by global investors, analysts and institutions.
The improvement in Pakistan’s risk profile comes after the South Asian nation narrowly avoided a sovereign default in 2023. With dwindling reserves and mounting debt repayments, Islamabad secured a short-term bailout from the International Monetary Fund (IMF) with the support of key allies including Saudi Arabia, the United Arab Emirates and China.
Since then, Pakistan has undertaken a series of IMF-recommended structural reforms and fiscal adjustments aimed at stabilizing the economy.
Credit rating agencies such as Standard & Poor’s and Fitch have acknowledged the progress with improved outlooks, while the government has prioritized timely debt servicing and macroeconomic discipline.
Schehzad attributed the improved outlook to “macroeconomic stabilization, structural reforms, successful IMF engagement and timely debt repayments,” noting that investor confidence had begun to return.
