In the salt deserts bordering Pakistan, India builds its largest renewable energy project

Workers travels in a vehicle toward the construction site of Adani Green Energy Limited's Renewable Energy Park in the salt desert of Karim Shahi village, near Khavda, Bhuj district near the India-Pakistan border in the western state of Gujarat, India, Thursday, Sept. 21, 2023. (AP)
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Updated 05 December 2023
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In the salt deserts bordering Pakistan, India builds its largest renewable energy project

  • The Khavda energy park is located near Vighakot village near Kutch district of Gujarat
  • Developers say the park will be so big, once completed, that it would be visible from space

KHAVDA, India: Rising from the bare expanse of the large salt desert that separates India from Pakistan is what will likely be the world’s largest renewable energy project when completed three years from now.

The solar and wind energy project will be so big that it will be visible from space, according to developers of what is called the Khavda renewable energy park, named after the village nearest to the project site.

At the site, thousands of laborers install pillars on which solar panels will be mounted. The pillars rise like perfectly aligned concrete cactuses that stretch as far as the eye can see. Other workers are building foundations for enormous wind turbines to be installed; they also are transporting construction material, building substations and laying wires for miles.

When completed, the project will be about as large as Singapore, spreading out over 726 square kilometers (280 square miles). The Indian government estimates it will cost at least $2.26 billion.

Shifting to renewable energy is a key issue at the ongoing COP28 climate summit. Some leaders have voiced support for a target of tripling renewable energy worldwide in any final agreement while curbing use of coal, oil and natural gas, which spew planet-warming gases into the atmosphere.

What makes this heavy industrial activity peculiar is that it’s taking place in the middle of the Rann of Kutch in western India’s Gujarat state. The Rann is an unforgiving salt desert and marshland at least 70 kilometers (43.5 miles) from the nearest human habitation but just a short army truck ride away from one of the world’s most tense international borders separating the two South Asian nations.

GROUND ZERO OF INDIA’S CLEAN ENERGY TRANSITION

When The Associated Press visited the renewable energy park, two days of unseasonal heavy rains had left the ground muddy and water logged since the only escape for water in this rough terrain is evaporation. This made it even harder for the workers to do their job.

Notwithstanding the tough conditions, an estimated 4,000 workers and 500 engineers have been living in makeshift camps for the better part of the past year toiling to get this project up and running.

Once completed, it will supply 30 gigawatts of renewable energy annually, enough to power nearly 18 million Indian homes.

As India aims to install 500 gigawatts of clean energy by the end of the decade and to reach net zero emissions by 2070, this project site will likely contribute significantly to the world’s most populous country’s transition to producing energy from non-carbon spewing sources.

As things stand, India is still mostly powered by fossil fuels, especially coal, which generate more than 70 percent of India’s electricity. Renewable energy currently contributes about 10 percent of India’s electricity needs. The country is also currently the third-largest emitter of planet-warming gases behind China and the United States.

“There are people working here from all over India,” said KSRK Verma, project head for Adani Green Energy Limited, the renewable energy arm of the Adani Group, which the Indian government has contracted to build 20 gigawatts of the project. Verma, with over 35 years of experience building dams across turbulent South Asian rivers and enormous natural gas tanks under the Bay of Bengal, says this is one of the most difficult projects he’s undertaken.

“It’s not at all (an) easy site to work at, there is no habitation, the land is marshy, there are a lot of high winds, rains and this is a high earthquake prone area,” said Vneet Jaain, managing director of Adani Green at its headquarters in the city of Ahmedabad.

Jaain who has overseen multiple ambitious projects for the Adani Group said the first six months were spent just building basic infrastructure. “From April this year is when we started working on the actual project,” he added.

The Adani Group has been in the limelight this year ever since the US-based short-selling Hindenburg Research firm accused the Group and its head, Gautam Adani, of “brazen stock manipulation” and “accounting fraud.” Adani Group has called the allegations baseless.

Jaain of Adani Green says the allegations have had little impact on its ongoing projects including work at the Khavda renewable energy park.

AN EXAMPLE TO EMULATE

“Twenty years ago, India was exactly where a vast expanse of (the) developing world was,” Ajay Mathur, director general of the International Solar Alliance, said of the country’s renewable energy production. The alliance has 120 member countries and promotes renewable energy — primarily solar — across the world.

About 200 kilometers (124 miles) away in the industrial city of Mundra, also located along the Gujarat state’s coastline, the Adani Group is manufacturing the solar and wind energy parts needed for the project. It’s one of the few locations in India where most solar energy components are made from scratch. Some of the factories are run like laboratories, with protective gear, face masks and head covers required to avoid dust particles that can compromise solar cells.

The nearby wind energy factory aims to produce 300 turbines a year, with each blade stretching nearly 79 meters (86 yards) and weighing 22 metric tons (24 tons). Each wind turbine generator is capable of producing 5.2 megawatts of clean energy. They will be India’s biggest.

As Mathur of the solar alliance said, “India has traveled a long way,” and its largescale renewable energy projects including the Khavda park will be inspiring for other developing countries. “Here is a country that was exactly where they are today and was able to make the change,” he said.

ENVIRONMENTAL IMPACT

While acknowledging the importance of transitioning to renewable energy, environmental experts and social activists say India’s decision to allow clean energy projects without any environmental impact assessments is bound to have adverse consequences.

“The salt desert is a unique landscape” that is “rich in flora and fauna,” including flamingos, desert foxes and migratory bird species that fly from Europe and Africa to winter in this region, according to Abi T Vanak, a conservation scientist with the Bengaluru-based Ashoka Trust for Research in Ecology and the Environment. Vanak has overseen multiple environment-related research projects in the Kutch region.

Kutch and other similar regions are classified as “wastelands,” by the Indian government — and Vanak says this is extremely unfortunate. “They are not recognized as valid ecosystems,” he said.

With renewable energy projects exempt from environmental impact assessments, “There is no system in place” to determine the best places for them, according to Sandip Virmani, an environmentalist based in Kutch.

At a little over 45,000 square kilometers (17,374.5 square miles), the Kutch district is as big as Denmark and is India’s largest district. Given this, Virmani said there is enough land in Kutch for various renewable energy projects. But he fears that dairies and other local businesses in the region might be impacted by large-scale projects. “It has to be in the context of not compromising on another economy,” he said.

Meanwhile, longtime residents are still waiting to see how this huge project near their village will affect them.

Hirelal Rajde, 75, who has spent most of his life in Khavda, is mindful of the upcoming energy project as well as the increase in tourism in recent years in this otherwise desolate region. “I think these developments are both good and bad,” said Rajde.

“I think overall though it will benefit more than it will cause problems,” he said. “I tell everyone who lives here to hold onto their land, don’t sell it. In a few years, I tell them they’ll have so much business that they won’t be able to rest even at night.”


For these Pakistani women, Independence Day offers a chance to earn and celebrate

Updated 13 August 2025
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For these Pakistani women, Independence Day offers a chance to earn and celebrate

  • Housewives, maids, mothers turn to selling flags and festive goods for extra income during Aug. 14 rush
  • Seasonal stalls in Pakistan’s commercial center can bring women vendors savings of up to $54 in a few days

KARACHI: In the days before Pakistan’s Independence Day, the streets of Karachi fill with green and white flags, bunting and balloons, but for many women in the city, the national celebration is also a time to step into business — if only for a few days.

Housewives, maids and street vendors set up temporary stalls along busy roads and markets, selling flags, badges, hats and T-shirts to customers celebrating the August 14 holiday.

In an economy where inflation has eroded incomes and steady jobs are scarce, the seasonal rush offers a welcome boost to household finances.

“August 14 is Independence Day, a day of happiness, so we also celebrate our happiness and earn a livelihood for the children,” said Shama Sikandar, a housewife selling Independence Day T-shirts for the first time this year from a roadside stall on Shahra-e-Quaideen.

“Before this, I would just stay at home and do nothing all year.”

She said the sight of other women working outside the home inspired her to try.

“It feels good to be working. I have seen many women even driving rickshaws, some riding motorcycles, some pushing carts, and others doing various jobs to earn a livelihood for their children.”

In Karachi, seasonal vendors crowd key intersections and shopping strips ahead of the holiday, calling out to passing motorists and pedestrians. The sales supplement incomes for women who otherwise rely on low-paying, year-round work.

For 32-year-old maid and mother of three, Saima Babar, the August rush is a planned investment.

From her savings of 30,000 rupees ($105), she buys flags and other celebratory goods to sell on the streets.

“Thanks to Allah, the household runs, we manage one meal a day, and that’s fine, right? My children are doing okay,” she said. “[By selling flags] I manage to save about 10 to 12 thousand rupees ($36–$43).”

Husna, a mother of seven who usually sells pens and keychains at traffic lights in Karachi’s upscale Defense area, shifts her stall to the Sindhi Muslim neighborhood every August.

“On some flags, I earn 20 rupees ($0.07) profit; on others, 30 rupees ($0.11). In this way, I make around 1,200 rupees ($4.30) a day,” she said, before handing over a badge and a couple of flags to a customer.

“Our livelihood is made; there’s enough for bread, water, and lentils. It’s happiness for you, and it’s happiness for us too. Pakistan Zindabad.”

Even women who have been selling for years say the holiday provides a reliable boost.

Sajan Kumar and his wife, Suman, have been setting up a flag stall on Shahra-e-Faisal every August for the past eight years.

“As soon as August 14 arrives, we come here to sell flags,” Kumar said. “It’s a day of celebration. We sell every year. People buy them, celebrate, and also come with their children to stroll around. We manage to save around 10 to 15 thousand rupees ($36–$54).”

Pakistan marks its 79th Independence Day this year under the theme “Marka-e-Haq – the Battle of Truth,” with celebrations beginning on Aug. 1 and running through the month. Across Sindh and Punjab provinces, flag-raising ceremonies, cultural shows, boat parades, marathons, and even donkey cart races have drawn large crowds.

For Babar, the more the merrier.

“The more people celebrate, the more purchases there are, right?” she said with a smile.


Moody’s upgrades Pakistan’s credit rating to ‘Caa1’, finance minister hopes for rate cut

Updated 25 min 7 sec ago
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Moody’s upgrades Pakistan’s credit rating to ‘Caa1’, finance minister hopes for rate cut

  • Pakistan’s international bonds rose as much as 1 cent to between 90-100 cents on the dollar following ratings upgrade
  • Aurangzeb says more room for central bank to cut key policy rate from 11 percent on back of positive economic indicators

Moody’s said on Wednesday it had raised Pakistan’s credit rating by one notch to ‘Caa1’ from ‘Caa2’ due to an improving external financial position and it assigned the country a “stable” outlook.

The announcement came within hours of Pakistan’s Finance Minister Mohammed Aurangzeb saying there was more room for the central bank to cut the country’s key policy rate from 11 percent on the back of positive economic indicators.

“The credit rating’s improvement is a sign that economic policies are heading toward the right direction,” Prime Minister Shehbaz Sharif said in a statement.

Pakistan’s international bonds rose as much as 1 cent to between 90 and 100 cents on the dollar following the ratings upgrade. It lifted most of them to their highest since early 2022 when fears of a full-blown debt crisis sent them plunging to as little as 30 cents.

Moody’s decision to raise the rating by one notch after Fitch and S&P did the same will help Pakistan’s capability to raise external debt. Pakistan says its economy is on a recovery path after a $7 billion IMF bailout helped to stabilize it.

“We changed the outlook for the Government of Pakistan to stable from positive,” Moody’s said in a statement.

“The upgrade to Caa1 reflects Pakistan’s improving external position, supported by its progress in reform implementation under the IMF Extended Fund Facility (EFF) program,” it said.

Pakistan’s debt affordability has improved, but remains one of the weakest among rated sovereigns, Moody’s said, adding that the Caa1 rating also reflected the country’s weak governance and high degree of political uncertainty.

Aurangzeb told a gathering of businessmen in Islamabad ahead of the Moody’s announcement that he was expecting an improvement in Pakistan’s credit rating by other agencies after Fitch and S&P.

“We are hopeful of progress in terms of the policy rate going south,” he added.

Aurangzeb said it was his personal view that there was more room for a rate cut toward the end of the year, adding that it was for the central bank to make the final call on the issue. The next policy rate announcement is due on September 15. The central bank left its key interest rate unchanged at 11 percent on July 30, going against analyst expectations. In a Reuters poll they had forecast a reduction of 50 to 100 basis points. The bank said the inflation outlook had deteriorated due to rising energy prices.

Inflation accelerated to 4.1 percent year-on-year in July. 


Pakistan’s central bank sees FY26 growth up to 4.25%, trade gap to widen

Updated 13 August 2025
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Pakistan’s central bank sees FY26 growth up to 4.25%, trade gap to widen

  • Current account deficit forecast at 0–1% of GDP despite remittance growth
  • Forex reserves projected to reach $15.5 billion by end-December 2025

KARACHI: Pakistan’s central bank on Wednesday projected economic growth of up to 4.25 percent in the current fiscal year but warned the trade deficit would widen, even as reserves are set to climb on the back of steady remittances and foreign inflows.

The forecast comes as Pakistan implements reforms under a $7 billion International Monetary Fund (IMF) program approved in September 2024, which has helped stabilize the currency, ease inflation and restore investor confidence. The IMF deal is tied to fiscal consolidation, energy sector reforms, and measures to boost exports, part of a broader effort to strengthen macroeconomic stability after years of chronic external imbalances.

The economy returned to moderate growth last year, aided by improved agricultural output, lower global commodity prices, and a series of policy rate cuts totaling 1,100 basis points since late 2024. Inflation has eased from record highs, while the rupee has stabilized against the dollar after a crackdown on the illegal currency market.

“With the policy rate kept unchanged at 11 percent in the MPC meetings in June and July, the MPC expects the real policy rate to be adequately positive to stabilize inflation within the medium-term target range,” the State Bank of Pakistan (SBP) said in its Monetary Policy Report (MPR) released on Wednesday. 

“In the external account, the MPR expects the trade deficit to widen further and, notwithstanding continued expected growth in workers’ remittances, result in a current account deficit of 0–1 percent of GDP in FY26,” it added.

The central bank said “projected financial inflows, coupled with continued SBP interbank FX purchases, would support further buildup in SBP’s FX reserves, which are projected to rise to $15.5 billion by end-December 2025.”

Economic activity, it said, was “projected to gain further traction, with the impact of the earlier reductions in the policy rate still unfolding,” and real GDP growth was expected to range between 3.25 percent and 4.25 percent in FY26.

The MPR also flagged “potential external and domestic risks to the baseline macroeconomic outlook” and included analysis of the lag in monetary policy transmission, comparisons with global central bank decisions, and the SBP’s use of alternative data and machine learning to fill gaps in labor market and agriculture statistics.
 


Pakistan’s first Islamic digital bank offers 14% Independence Day cashback

Updated 13 August 2025
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Pakistan’s first Islamic digital bank offers 14% Independence Day cashback

  • Campaign runs Aug. 13–22 with Rs3,000 cap per customer
  • Cashback credited to accounts within one business day

KARACHI: Pakistan’s first Islamic digital bank is offering a 14 percent cashback on eligible debit card and QR code transactions to mark the country’s 78th Independence Day, in a campaign aimed at promoting cashless and Shariah-compliant payments.

The “Azadi Cashback” promotion, launched by aik, will run from Aug. 13 to Aug. 22 and allow customers to earn up to Rs3,000 ($10.75) in cashback during the period, credited to their accounts within one business day. The offer excludes utility bills, cash withdrawals, peer-to-peer transfers and government payments.

“The cashback is structured as a discretionary gift on the momentous occasion of Pakistan’s 78th Independence Day,” aik said in a statement.

aik, which operates as a digital-only platform, said the promotion supports its mission to provide Riba-free financial services and encourage secure, cashless transactions. It aims to create a banking experience rooted in transparency, ethics and user empowerment.

aik said the Independence Day campaign was part of efforts to “accelerate the adoption of secure digital payments across Pakistan,” combining “convenience with compliance” for users seeking Islamic finance options.

Digital banking is expanding rapidly in Pakistan, driven by high smartphone penetration and government incentives for electronic payments. According to the State Bank of Pakistan, digital retail transactions surged over 50 percent year-on-year in fiscal 2024, with mobile banking emerging as a key growth segment.


India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales

Updated 54 min 19 sec ago
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India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales

  • Flag maker reports sales up by up to 50 percent as households and businesses spend heavily on August 14 decorations
  • Traders say brisk Independence Day buying is lifting markets despite inflation squeezing consumer budgets

KARACHI: Pakistan’s largest flag manufacturer, VIP Flags, is expecting around 50 percent growth in sales this year as the public marks the country’s 78th Independence Day with unusual zeal, fueled by celebrations of victory in the May 2025 conflict with India.

The two nuclear-armed neighbors, which have fought three major wars since 1947, engaged in their deadliest fighting in decades this May. The fighting ended on May 10 after US mediation, with Prime Minister Shehbaz Sharif’s government declaring victory and saying it had downed at least six Indian fighter jets.

Officials have since linked the conflict’s outcome to the heightened national fervor surrounding August 14 this year, reflected in booming flag markets and sales of other Independence Day paraphernalia.

“Our business, all the businesses have grown 50 percent,” said VIP Flags CEO Nisar Ahmed Sheikh, adding that much of his stock had been sold to marchers rallying in support of Pakistan’s armed forces during the war with India.

VIP Flags manufactures flags for domestic customers, the armed forces, and international buyers in Saudi Arabia and the UAE, and holds Guinness World Records for the largest flags made in 2004 and 2008.

Sheikh said sales this year would likely run into millions of units.

“Obviously when people were filled with passion [after the war with India] and started hoisting flags, the flags business saw an uptick and increased compared to last year,” he told Arab News. 

“It is still growing and people are putting flags on their cars, bicycles and motorcycles.”

Sheikh said the surge in sales extended well beyond flags, with market vendors incorporating Independence Day themes into a wide range of products — from shirts, mufflers and headbands to shawls, dresses and children’s clothing — creating a vibrant festive atmosphere.

“People must be spending billions of rupees on this (celebrations) and this spending boosts the economy,” the CEO said. 

In Pakistan’s commercial hub of Karachi ahead of Aug. 14, large and small flags adorned vehicles, houses and office buildings, alongside buntings and night-time illuminations. Meanwhile, federal and provincial governments are holding daily events, with top officials like the prime minister and army chief expected to attend ceremonies in Islamabad on Aug. 13 and 14.

“The last time we saw such a show of national zeal on Independence Day was in Zia’s time,” Sheikh said, referring to former military ruler Zia-ul-Haq. “We see people decorating their houses, vehicles and vicinities with flags and buntings and badges.”

Abdul Wahab, a finisher at one of Sheikh’s factories, said he expected at least a 25 percent income increase this season. 

“We are seeing a rush in the market because of this war we recently fought with India,” said the 26-year-old, who plans to work overtime to meet demand.

For lawyer Bad-e-Saba, the occasion was a chance to pass on a message to the next generation.

“The war we recently won against Hindustan is a matter of great pride for us. We want to convey it to our children so they could know where we are standing against our enemy,” she said.

“We want to tell our enemies that we can take good care of our country and our next generation will do it better.”