Pakistan regulator increases power tariff by 20 percent amid new bailout talks with IMF

Pakistan regulator increases power tariff by 20 percent amid new bailout talks with IMF
A technician from the Karachi Electric Supply Corporation (KESC), Pakistan's largest city's power supply company, fixes new electricity meters at a residential building in Karachi on May 13, 2010. (AFP/File)
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Updated 15 June 2024
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Pakistan regulator increases power tariff by 20 percent amid new bailout talks with IMF

Pakistan regulator increases power tariff by 20 percent amid new bailout talks with IMF
  • The Rs5.72 per unit increase, which will take effect from July 1, will provide Rs485 billion in additional revenue to distribution companies
  • Under last bailout, IMF told Pakistan to prevent further accumulation of circular debt in power sector, arising from subsidies and unpaid bills

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Friday announced an increase of around 20 percent in the uniform power tariff to generate Rs3.8 trillion in funds for 10 power distribution companies (discos) during the fiscal year 2024-25, amid Pakistan’s talks with the International Monetary Fund (IMF) for a new bailout program.
The Rs5.72 per unit increase, which will take effect from July 1 after the government issues a formal notification, will provide Rs485 billion in additional revenue to discos and strengthen the government’s position in securing an IMF bailout in July.
Islamabad is currently locked in talks with the IMF for a longer-term bailout of around $8 billion after the last $3 billion helped Pakistan avert a sovereign default in June last year. Pakistan is expected to formally request for the program in the coming weeks.
NEPRA said the total Power Purchase Price (PPP) of ex-WAPDA distribution companies (XWDISCOs) for FY 2024-25 worked out as Rs3,277 billion, which includes Rs1,161 billion for fuel & variable cost and Rs2,116 billion as capacity charges.
“The capacity charges translate into Rs.6,957/kW/month, based on projected average monthly MDI of 25,348 MW. Thus, the capacity charges works out as around 65 percent of the total projected PPP of XWDISCOs, whereas energy cost is around 35 percent of the total projected PPP,” it said in a circular.
“In terms of average per unit PPP of XWDISCOs on unit purchased basis i.e. before adjustment of allowed T&D losses of XWDISCOs, capacity charges works out as Rs. 17.66/kWh, whereas energy charges are Rs.9.69/kWh, totaling to Rs.27.35IkWh for the FY 2024-25.”
The national average power purchase price works out as Rs.27.00/kWh, according to NEPRA. The generation cost is transferred to the DISCOs as per the prescribed mechanism.
Under the last IMF bailout, Pakistan was told to prevent further accumulation of circular debt in its power sector, arising from subsidies and unpaid bills. For a new program, the South Asian nation will need to implement reforms to reduce costs by improving electricity transmission and distribution, moving captive power into the grid, improving governance, and combating theft.
It will also have to maintain power and gas tariffs at levels that ensure cost recovery, with adjustments made to safeguard the financially vulnerable, through existing progressive tariff structures.
The government has the authority to make adjustments with different rates of increases for various consumer categories without affecting the overall revenue requirement determined by NEPRA.


Pakistan stocks remain under pressure on uncertainty over US tariffs

Pakistan stocks remain under pressure on uncertainty over US tariffs
Updated 12 min 2 sec ago
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Pakistan stocks remain under pressure on uncertainty over US tariffs

Pakistan stocks remain under pressure on uncertainty over US tariffs
  • Benchmark KSE-100 index experienced significant intraday pressure on Wednesday, plunging as much as 2,640 points during the session 
  • Global markets took a pummeling on Wednesday as President Donald Trump’s eye-watering 104% tariffs on China came into effect

ISLAMABAD: Pakistan’s benchmark KSE-100 index experienced significant intraday pressure on Wednesday, shedding as much as 2,640 points during the session before settling at 114,153 points on uncertainty over US tariff measures.
Global markets took a pummeling on Wednesday as President Donald Trump’s eye-watering 104% tariffs on China came into effect, and a savage selloff in US bonds sparked fears that foreign funds were fleeing US assets.
This week has brought crisis-era volatility to markets, wiping off trillions of dollars in value from stocks and hitting commodities and emerging markets with force.
“The Pakistan Stock Exchange remained under significant pressure today, as mounting uncertainty over potential US tariff measures reverberated across global financial markets,” Pakistani brokerage house Topline Securities said in its daily market review.
“In line with the negative trend witnessed in international equities, the local bourse experienced heightened volatility throughout the session.”
After plunging as much as 2,640 points during intraday trading on Wednesday, some recovery was seen in the latter half of the day and the index closed at 114,153 points, marking a net decline of 1,379 points or 1.19%.
On Tuesday, Pakistan stocks had closed at 118,938, gaining 623 points (0.54%), a day after the exchange fell to an intraday low of 8,687 points, the largest intraday point-wise drop in PSX history.
Major stock indexes plunged on Monday after Trump announced tariffs on goods imported from the rest of the world, saying a 10% tariff on all nations and much higher rates of up to 50% on individual countries will boost the US economy and protect jobs.
The Trump administration has also imposed a 29% tariff on Pakistan.


BYD comes on board to ‘electrify’ Pakistan Super League’s 10th edition

BYD comes on board to ‘electrify’ Pakistan Super League’s 10th edition
Updated 42 min 54 sec ago
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BYD comes on board to ‘electrify’ Pakistan Super League’s 10th edition

BYD comes on board to ‘electrify’ Pakistan Super League’s 10th edition
  • BYD Pakistan is partnering with 10th edition of Pakistan’s premier PSL cricket league as an official mobility partner
  • BYD Pakistan has partnered with Mega Motor Company to enter and expand the electric vehicle market in Pakistan

ISLAMABAD: BYD Pakistan, the operations of the Chinese New Energy Vehicle (NEV) manufacturer BYD, has joined hands with the 10th edition of Pakistan’s premier PSL cricket league as an official mobility partner, a press release said this week. 
This year’s season of PSL will take place across four cities in Pakistan from April 11 to May 18. 
“This electrifying partnership unites the nation’s most thrilling sporting event and the high-tech global NEV leader in the automotive industry — highlighting a shared commitment to innovation, excellence, and sustainability,” a joint press release said.
“As part of the sponsorship, BYD’s latest NEVs will be showcased during various matches across the country, offering cricket enthusiasts an opportunity to witness cutting-edge automotive technology.”
BYD Pakistan has partnered with Mega Motor Company (MMC), a subsidiary of Hub Power Company (HUBCO), to enter and expand the electric vehicle market in Pakistan.
Speaking at the signing ceremony of the BYD and PSL agreement, Mega Motor Company’s GM Marketing, Syed Haider Mujtaba, said partnering with HBL PSL X gave the firm the opportunity to connect with millions of cricket fans while showcasing BYD’s new EVs. 
“This collaboration reflects our commitment to promoting sustainable mobility and eco-friendly transportation solutions in Pakistan,” he added. 
The Pakistan Super League, also known as HBL PSL for sponsorship reasons, is a professional Twenty20 cricket league in Pakistan organized by the Pakistan Cricket Board. 
Founded by the PCB in 2015, the league features six city-based franchise teams. The current champions are Islamabad United.


Pakistan says US companies seek to invest in country’s untapped minerals sector

Pakistan says US companies seek to invest in country’s untapped minerals sector
Updated 55 min 26 sec ago
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Pakistan says US companies seek to invest in country’s untapped minerals sector

Pakistan says US companies seek to invest in country’s untapped minerals sector
  • Senior US official Eric Meyer conveyed that interest directly to Pakistani PM Shehbaz Sharif during ongoing Islamabad visit 
  • Meyer is in Pakistan to attend an international summit aimed at attracting foreign investment in country’s mining sector

ISLAMABAD: US companies are seeking to invest in Pakistan’s largely untapped minerals sector that boasts one of the world’s largest copper and gold deposits, the Pakistani government said Wednesday.
Eric Meyer, Senior Bureau Official for the State Department’s Bureau of South and Central Asian Affairs, conveyed that interest directly to Pakistani Prime Minister Shehbaz Sharif during meeting in Islamabad, according to a government statement.
The meeting came a day after Meyer attended the Pakistan Minerals Investment Forum, an international summit aimed at attracting foreign investment in the country’s mining sector. Apart from gold and copper, Pakistan is also rich in lithium used to make batteries, as well as other minerals.
The summit has drawn participation from major international companies, including Canada-based Barrick Gold, as well as government officials from the United States, Saudi Arabia, China, Turkiye, the United Kingdom, Azerbaijan, and other nations.
Pakistan’s massive copper and gold deposits are located in Reko Diq, a district in restive Balochistan, which has witnessed a surge in attacks by Baloch separatists in recent years. Pakistan’s powerful army chief Gen. Asim Munir had told foreign companies and investors at the summit that the military would ensure their security.
The statement said Meyer “acknowledged the potential of Pakistan’s mineral sector,” adding that American companies are interested in exploring investment opportunities.
He reaffirmed Washington’s interest in expanding bilateral cooperation, including in such sectors as trade, investment, and counterterrorism, the statement said. Sharif said Pakistan’s minerals sector offered “immense opportunities” and encouraged US companies to take advantage of the investment potential.
Sharif expressed Islamabad’s desire to strengthen ties with the Trump administration. Meyer’s visit marks the first by a Trump administration official since the US imposed a 29 percent tariff on Pakistani exports as part of his trade war.
Sharif’s office said in a statement later Wednesday that the Pakistani prime minister will dispatch a high-level delegation to Washington to negotiate with Trump administration officials over the tariffs issue and to discuss how to enhance bilateral trade.


India readies for US extradition of Pakistan-born suspect in Mumbai attacks

India readies for US extradition of Pakistan-born suspect in Mumbai attacks
Updated 10 sec ago
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India readies for US extradition of Pakistan-born suspect in Mumbai attacks

India readies for US extradition of Pakistan-born suspect in Mumbai attacks
  • Tahawwur Hussain Rana, Canadian citizen born in Pakistan, due to be extradited “shortly” to face trial, Indian media says
  • India accuses Rana of being member of Pakistan-based LeT group designated by the UN as a ‘terrorist’ organization

NEW DELHI: Indian authorities are readying for the extradition from the United States of a man that New Delhi accuses of helping plan the 2008 Mumbai siege that killed 166 people.
Tahawwur Hussain Rana, 64, a Canadian citizen born in Pakistan, is due to be extradited “shortly” to face trial, Indian media said, reporting that New Delhi had sent a multi-agency team of security officials to collect him.
India accuses him of being a member of the Pakistan-based Lashkar-e-Taiba (LeT) group, designated by the United Nations as a terrorist organization, and of aiding planning the attacks. Pakistan has always denied official complicity.
US President Donald Trump announced in February that Washington would extradite Rana, whom he called “one of the very evil people in the world.”
The US Supreme Court this month rejected his bid to remain in the United States, where he is serving a sentence for a planning role in another LeT-linked attack.
New Delhi blames the LeT group — as well as intelligence officials from New Delhi’s arch-enemy Pakistan — for the Mumbai attacks in November 2008, when 10 gunmen carried out a multi-day slaughter in the country’s financial capital.
India accuses Rana of helping his long-term friend, David Coleman Headley, who was sentenced by a US court in 2013 to 35 years in prison after pleading guilty to aiding LeT militants, including by scouting target locations in Mumbai.
Rana, a former military medic who served in Pakistan’s army, emigrated to Canada in 1997, before moving to the United States and setting up businesses in Chicago, including a law firm and a slaughterhouse.
He was arrested by US police in 2009.
A US court in 2013 acquitted Rana of conspiracy to provide material support to the Mumbai attacks. But the same court convicted him of backing LeT to provide material support to a plot to commit murder in Denmark.
Rana was sentenced to 14 years for his involvement in a conspiracy to attack the offices of the Jyllands-Posten newspaper, which had published cartoons depicting the Prophet Muhammad that angered Muslims around the globe.
But India maintains Rana is one of the key plotters of the Mumbai attacks along with the convicted Headley — and the authorities have welcomed his expected extradition.
In February, Devendra Fadnavis, chief minister of Maharashtra state which includes the megacity Mumbai, said that “finally, the long wait is over and justice will be done.”
Devika Rotawan, a survivor of the Mumbai attacks, said she believed the extradition of Rana would be a “big win for India.”
“I will never be able to forget the attack,” she told broadcaster NDTV on Wednesday.
Counterterrorism experts however suggest Rana’s involvement was peripheral compared to Headley, a US citizen, who India also wants extradited.
“They gave us a small fish but kept David Headley, so the essential outcome is going to be symbolic,” said Ajay Sahni, head of the Institute for Conflict Management, a New Delhi-based think tank.
Rana knew Headley, 64, from their days together at boarding school in Pakistan.
Headley, who testified as a government witness at Rana’s trial, said he had used his friend’s Chicago-based immigration services firm as a cover to scout targets in India, by opening a branch in Mumbai.
Rana has said he visited Mumbai ahead of the attacks — and stayed at the luxury Taj Mahal Palace Hotel that would become the epicenter of the bloody siege — but denied involvement in the conspiracy.
Sahni said that more than 16 years after the attacks, Rana’s extradition is of “historical importance” rather than a source of any “live intelligence.”
But he added that handing him over has “a chilling effect” on others abroad who India seeks to put on trial.


Top New York firm plans to open local office amid Pakistan’s privatization drive – finance ministry

Top New York firm plans to open local office amid Pakistan’s privatization drive – finance ministry
Updated 09 April 2025
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Top New York firm plans to open local office amid Pakistan’s privatization drive – finance ministry

Top New York firm plans to open local office amid Pakistan’s privatization drive – finance ministry
  • Alvarez & Marsal delegation meets finance minister to discuss privatization, establishment of a sovereign wealth fund
  • Pakistan aims to privatize over 50 state-owned companies within the next four years to reduce its financial burden

KARACHI: A global professional services firm from New York is considering opening an office in Pakistan to assist the government with privatizing state-owned enterprises (SOEs) before 2030, as part of efforts to overhaul public entities and improve their performance, the finance ministry said on Wednesday.
Alvarez & Marsal (A&M), founded in 1983 and operating in over 30 countries, is renowned for its expertise in corporate restructuring and turnaround management. It is offering its services to the government as Pakistan plans to privatize over 50 SOEs within the next four years due to their significant impact on the national exchequer.
The A&M delegation, led by Division Executive Peter Briggs, Managing Director Abdalla ElEbiary and Global Head of Sovereign Advisory Reza Baqir — the former governor of Pakistan’s central bank — met with Finance Minister Muhammad Aurangzeb in Islamabad to discuss the firm’s role in Pakistan’s privatization process and the establishment of a sovereign wealth fund.
“During the meeting, Briggs emphasized A&M’s strong commitment to investing in Pakistan,” the finance ministry said in a statement.
“He mentioned that the firm is considering opening an office in Pakistan as part of its broader commitment to assist the government in its privatization efforts and to attract potential global investors to the country.”
So far, the company has not issued a statement on the meeting. However, the ministry said Briggs highlighted the firm’s long-term strategy to expand in the region, noting that Pakistan’s growing market presents investment and growth opportunities.
Aurangzeb thanked the delegation for their company’s contribution to the privatization of power distribution companies and highlighted the government’s commitment to the process, with 24 SOEs already in the privatization pipeline.
In February, Pakistan signed a financial advisory agreement with A&M to privatize three major power distribution companies. This agreement was part of the government’s broader effort to reform the power sector, which has long faced issues like circular debt, operational inefficiencies and power theft.
The divestment of state-run power companies is a key component of Pakistan’s economic reform agenda, as outlined in the IMF’s current $7 billion loan program.
Last year, a Pakistan cabinet committee responsible for the Privatization Program 2024–29 approved the privatization of 24 entities. However, it decided that the inclusion of other state entities would be determined after a review to assess their categorization as strategic or essential enterprises.