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)
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Updated 04 March 2021
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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. 


Google launches ‘AI Mode’ in Pakistan to enable users to ask longer, complex questions

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Google launches ‘AI Mode’ in Pakistan to enable users to ask longer, complex questions

  • Google says AI Mode particularly helpful for exploratory tasks like comparing products, planning trips
  • AI Mode enables people to engage with it through text, voice, or images, says the search engine giant

KARACHI: Global search engine giant Google announced on Tuesday that it has launched its ‘AI Mode Pakistan,’ which enables users to receive answers to longer, more complex questions. 

AI-powered searches by chatbots and social media platforms are becoming popular as users seek quick answers to their specific problems through artificial intelligence. These help people perform several tasks and activities such as writing, crafting itineraries for vacation trips, preparing diet plans and others. 

Google’s AI Mode was first introduced in the US earlier this year. According to the search engine giant, it is now expanding globally and is resonating with people who appreciate its speed, quality, and fresh responses.

“Google launches AI Mode Pakistan in English, bringing its most powerful AI search experience, AI-powered Search, to local users, enabling faster, smarter, and more comprehensive answers to complex questions,” Google said in a press release. 

Powered by a custom version of Gemini 2.5, Google said its AI Mode allows people to ask longer, more complex questions that would previously require multiple searches. 

Google said its early testers have shown queries are already two to three times longer than traditional searches, proving it is particularly helpful for exploratory tasks like comparing products, planning a trip, or understanding complex how-tos. 

“It dives deep to answer multiple questions at once, with helpful links for further exploration,” Google added. 
 
It said AI Mode uses a query fan-out technique, breaking users’ questions into subtopics and issuing a multitude of queries on their behalf. This enables it to dive deeper into the web than ever before, helping users find relevant content. 

“What makes this experience unique is that it brings together advanced model capabilities with Google’s best-in-class information systems, and it’s built right into Search,” the search engine said. 

“Users can access not only high-quality web content but also tap into fresh, real-time sources like the Knowledge Graph and shopping data for billions of products.”

It said AI Mode enables people to engage through text, voice, or images, allowing them to take pictures of what they see and pose their queries for responses. 


Pakistan’s new virtual-assets watchdog forms specialist committees at first board meeting

Updated 26 August 2025
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Pakistan’s new virtual-assets watchdog forms specialist committees at first board meeting

  • Officials discussed withdrawing a 2018 central-bank circular barring banks from virtual currencies and tokens
  • It approved a complaint portal with the cybercrime agency and set bi-monthly meetings for the first six months

ISLAMABAD: The Pakistan Virtual Assets Regulatory Authority (PVARA) convened its inaugural board meeting on Tuesday, forming specialist committees, sharing a draft licensing framework for consultation and approving a complaint portal developed with the national cybercrime agency, according to an official statement.

Set up to regulate blockchain and virtual assets, PVARA aims to align Pakistan with global standards while encouraging innovation and investment. The board also set a bi-monthly meeting schedule for the first six months and considered withdrawing the State Bank’s 2018 circular that had directed financial institutions to refrain from dealing in virtual currencies and tokens.

“The Board deliberated on key priorities, including operationalizing PVARA to align with international Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) standards, recommending independent directors with expertise in virtual assets for approval, and establishing the Authority’s core framework,” the statement from the Office of the Minister of State on Blockchain and Crypto said.

“The Board agreed to form dedicated committees focused on sandbox experimentation, taxation policies, regulatory drafting and international engagement,” it added.

In his address, Finance Minister Muhammad Aurangzeb hailed PVARA’s launch as a “transformative milestone” in Pakistan’s economic evolution, saying the authority would help position the country as a leader in the global virtual assets economy.

He thanked the Pakistan Crypto Council for its foundational work and consultations with stakeholders.

“Today is a defining moment for Pakistan’s virtual assets ecosystem,” PVARA Chairman Bilal bin Saqib said. “PVARA will safeguard financial integrity while fostering innovation, investment, and opportunity in the virtual assets space.”

“Our goal is to build trust domestically and enhance Pakistan’s credibility as a forward-thinking player in the global virtual assets economy,” he added.

The meeting underscored its PVARA’s role in promoting the responsible adoption of virtual assets and strengthening Pakistan’s financial system against illicit activities.
 


Pakistan approves $10.8 million for Gilgit-Baltistan relief, Punjab evacuates 150,000 amid rising rivers

Updated 26 August 2025
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Pakistan approves $10.8 million for Gilgit-Baltistan relief, Punjab evacuates 150,000 amid rising rivers

  • Kasur, Okara, and Bahawalnagar among Punjab districts where mass evacuations are underway
  • In Khyber Pakhtunkhwa province, at least 406 killed and nearly 6,000 homes destroyed since Aug. 15

ISLAMABAD: Pakistan’s top economic decision-making body on Tuesday approved the release of Rs3 billion ($10.8 million) in emergency funds for flood-affected families in northern Gilgit-Baltistan, while more than 150,000 people were evacuated from Punjab’s Sutlej and Ravi river belts amid rising waters.

The decision came as the latest spell of monsoon rains continued to devastate much of the country, leaving nearly 800 people dead since late June.

Pakistan has been battered by heavy rains since the start of the monsoon season on June 26. The most devastating spell began on Aug. 15 and has killed at least 485 people since, underscoring the scale of the disaster in one of the world’s most climate-vulnerable countries.

The Khyber Pakhtunkhwa (KP) province has reported at least 479 deaths since the monsoons started, followed by Punjab with 165, Sindh 54, Gilgit-Baltistan 45, Balochistan 24, Azad Jammu and Kashmir 23, and the capital Islamabad eight, according to official figures.

“The Economic Coordination Committee approved the release of Rs3 billion for timely provision of tents, medicines, food and other essential supplies for the affected families, as well as for reconstruction of damaged infrastructure and early recovery measures to support the affected communities,” the finance ministry said in a statement after Finance Minister Muhammad Aurangzeb chaired a meeting of the ECC.

Separately, the National Disaster Management Authority (NDMA) issued an advance alert to the provincial disaster agency in Punjab, the PDMA, regarding rising water levels in the Sutlej River and potential floods. The alert prompted large-scale evacuation operations in areas near the Sutlej River.

“As a result of the advance warning and alert issued by NDMA, approximately 150,000 people have so far been moved from flood-prone areas to safe locations,” the NDMA statement said. 

These included 14,140 people from Kasur, 2,063 from Okara, 89,868 from Bahawalnagar, 361 from Bahawalpur, 165 from Vehari and 873 from Pakpattan.

The Punjab Provincial Disaster Management Authority (PDMA) also reported rising waters in the Ravi and Sutlej rivers.

“There is an extremely high flood at Ganda Singh Wala on the Sutlej River, where the inflow is 195,000 cusecs,” PDMA Director General Irfan Ali Kathia said, adding that Sulemanki on the Sutlej was at medium flood with an inflow of 104,000 cusecs and an outflow of 98,000 cusecs.

“There is a medium-level flood at Jassar with an inflow of 90,000 cusecs and a low-level flood at Shahdara with 40,000 cusecs,” a PDMA spokesperson said, warning that between 60,000 and 70,000 cusecs could pass Shahdara later on Tuesday night.

“Citizens in riverbeds should immediately move to safe places,” Kathia said, adding that mosque loudspeakers were being used to alert residents and instructing local administrations “to ensure no negligence in protecting lives and property.”

Punjab Relief Commissioner Nabeel Javed said flood relief camps had been established in affected areas and that “all basic facilities and medicines will be provided.” He also cautioned against landslides in Murree, Galiyat and other northern hill areas and advised residents to avoid unnecessary travel.

HEAVY TOLL IN KP

In northwestern Khyber Pakhtunkhwa, authorities reported widespread destruction as flash floods and house collapses swept through multiple districts. At least 406 people have died and 245 have been injured since Aug. 15, while nearly 5,900 houses were completely destroyed and more than 2,800 partially damaged, according to the provincial situation report.

The district of Buner was among the worst hit, with the local administration reporting over 20 bodies recovered in recent days and around 50 people still missing. Rescue operations remain underway with support from district officials, the army and humanitarian organizations.

Across the province, dozens of bridges, culverts, irrigation channels and roads have been washed away, cutting off access to remote areas. Relief efforts include the distribution of cooked meals, dry food rations, tents, and medical supplies, with mobile health teams operating in flood-affected zones.

Officials say the ongoing monsoon spell is expected to last until at least September 10, while the NDMA has warned the rains could rival the scale of the catastrophic floods of 2022, which killed more than 1,700 people and caused over $30 billion in damage.

Annual monsoon rains are crucial for Pakistan’s agriculture and water supply but in recent years have also unleashed devastation, intensified by shifting climate patterns.

Despite contributing less than 1 percent of global greenhouse gas emissions, Pakistan ranks among the countries most vulnerable to climate change. In recent years it has endured increasingly erratic weather, including droughts, heatwaves and record-breaking rains that have caused widespread loss of life and damage to property.

Experts warn that without urgent adaptation and mitigation measures, the human and economic toll of climate change in Pakistan will only deepen in the years ahead.


Palestine at forefront as Pakistan’s deputy PM meets Muslim leaders on sidelines of OIC session

Updated 26 August 2025
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Palestine at forefront as Pakistan’s deputy PM meets Muslim leaders on sidelines of OIC session

  • Ishaq Dar meets foreign ministers of Türkiye, Egypt and Algeria, says talks focused on Gaza ceasefire and aid
  • He also discussed Gaza’s reconstruction with Saudi, Iranian and Malaysian officials in Jeddah a day earlier

ISLAMABAD: Palestine remained at the forefront as Pakistan’s Deputy Prime Minister Ishaq Dar met the foreign ministers of Türkiye, Egypt and Algeria on the sidelines of the 21st Extraordinary Session of the Organization of Islamic Cooperation’s (OIC) Council of Foreign Ministers (CFM), according to his social media posts on Tuesday.

The session in Jeddah, called by Palestine, Türkiye and Iran, focused on war in Gaza, leading to a resolution condemning Israeli plans for full military control of Palestinian enclave, demanding a ceasefire, lifting the siege and opening crossings for unhindered aid.

Dar mentioned his interactions with fellow leaders from other parts of the Muslim world, sharing the crux of conversations with them.

“Had a meaningful interaction with my brothers, FM of Egypt H.E. Badr Abdelatty and FM of Algeria H.E. Ahmed Attaf @AhmedAttaf_Dz, on sidelines of 21st extraordinary session of the #OIC CFM,” he said in a post.

“We discussed the grave situation in Palestine, stressing the urgent need for humanitarian access, a ceasefire, and lasting peace, while underscoring the importance of unity within the Muslim Ummah in these challenging times,” he added.

Dar said he also reaffirmed Pakistan’s commitment to strengthening ties with Egypt and Algeria through enhanced connectivity and broader cooperation across diverse fields.

Earlier, he met Turkish Foreign Minister Hakan Fidan, with both affirming solidarity with Palestine and highlighting the need for urgent humanitarian relief amid a worsening crisis in Gaza.

“We also reaffirmed the brotherly Pakistan-Türkiye relations, and looked forward to further strengthening our multifaceted cooperation,” he said.

Dar also discussed the ongoing situation in the Middle East a day earlier with other Muslim leaders, including the foreign minister of Bangladesh, Malaysia, Somalia, Iran and Saudi Arabia, alongside reviews of bilateral cooperation.

He highlighted the need for uninterrupted humanitarian access to Gaza. Additionally, he called for the reconstruction of the area and discussed way of addressing the conflict for lasting peace in the region.


Pakistan bought initial 30,000 tons sugar in tender, traders say

Updated 26 August 2025
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Pakistan bought initial 30,000 tons sugar in tender, traders say

  • The government has approved plans to import 500,000 tons of sugar to stabilize prices
  • Traders say validity of other price offers has been extended, with more purchases possible

HAMBURG: Pakistan’s state trading agency TCP has purchased an initial 30,000 metric tons of white sugar in an international tender seeking around 200,000 tons which closed last week, European traders said on Tuesday.

The validity of other price offers submitted in the tender has been extended until Wednesday, August 27, so more purchases are seen as possible, traders said.

The initial 30,000 ton purchase was believed to have been made from Al Khaleej Sugar for medium grade sugar at an estimated $582.50 a ton c&f, they said.

Reports reflect assessments from traders, and further estimates of prices and volumes are still possible.

The tender sought offers for fine, small and medium grade sugar, all for arrival in Pakistan by October 31.

The TCP can consider offers for several days in tenders before deciding whether to purchase.

Offers in the tender were submitted on August 21. The lowest offer is not always accepted if other conditions associated with it are not seen as attractive.

Pakistan’s government has approved plans to import 500,000 tons of sugar to help to maintain price stability after retail sugar prices rose sharply.

The TCP bought a total of 105,000 tons in its previous sugar tender reported on August 14.