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India building another controversial hydropower project on River Chenab

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  • Project has live dam storage of 99,000 acre-feet. 
  • Pakistan already invoked Article 9 of Treaty.
  • India also started construction of Kiru, Kwar projects.

ISLAMABAD: India has started constructing the first-ever hydropower project on Maru Sadar, the right bank tributary of the River Chenab that violates the provisions of the Indus Waters Treaty (IWT) 1960, The News reported Monday. 

Islamabad and New Delhi are already in a legal battle in the court of arbitration and neutral expert, the two international forums on the faulty designs of 330MW Kishanganga and 850MW Ratle hydropower projects being built on Pakistan’s rivers.

Pakistan has objected to the designs of the hydropower project which has live dam storage of 99,000 acre-feet and a capacity to generate 1,000MW hydropower generation.

India is pretending that it will have live storage of 88,000 acre-feet with a faulty design of spillways in sheer violation of the IWT 1960, according to experts. The project will be completed within two years.

But Pakistan has already invoked Article 9 of the Treaty, under Paragraph 11 of Annexure-E, on the project’s spillways and free board designs way back one-and-a-half years ago. 

“We are observing the said project and already raised objections on its design under Article 9. We would again raise the issue under Article 9 of the treaty with the Indian side at PCIW level talks, which may be held before March 2024,” a senior official of Pakistan Commissioner for Indus Waters (PCIW) confirmed to The News.

India, under the treaty, has the right to store 3.6 million acres of water on Pakistan rivers for irrigation purposes, and to this effect, it is going to complete the Pakal Dal project with a reservoir of 99,000 acre-feet of water.

Pakistan is of the view that India will have a live storage capacity of 99,000 acre-feet in the Pakal Dal dam and that the quantum of water should be deducted from 3.6 million acre-feet of its water storage right.

But India, with a faulty design of spillways, wants to pretend since it has a live storage capacity of 88,000 acre-feet, so the volume of 88,000 acre-feet should be deducted from its right of water storage on Pakistan rivers.

If talks under Article 9 fail, the Pakistan side will start exhausting other endeavours mentioned in the Indus Waters Treaty, and after that in case no resolution is attained, Pakistan will be left with no option but to move a court of arbitration on the particular project.

Meanwhile, India has expedited its construction work for two more projects — the Kiru and Kwar projects upstream Ratle project on the Chenab River with designs that are in sheer breach of provisions of the Indus Waters Treaty of 1960.

Pakistan has objected to the designs of the Kiru hydropower project of 624MW and the Kwar hydroelectric power project of 540MW in its recent interaction with India at the level of the PIWC. India is bound to share the designs of its projects with Pakistan under the agreement.

The Kiru hydropower project is being built along the River Chenab near the villages of Patharnakki and Kiru, approximately 42 kilometres from Kishtwar. It will be located between the Kirthai-II hydroelectric project to its upstream and the Kwar hydroelectric project to its downstream.

As per India, Kwar is a run-of-river project. The net head of the project will be 56.6 metres. The total number of penstocks, pipes or long channels that carry water down from the hydroelectric reservoir to the turbines inside the actual power station, is expected to be four in number. The penstock length will be 236 metres. The penstock diameter will be 5.65 metres. The project is expected to generate 1,975.54GWh of electricity. The hydropower project consists of four turbines, each with 135MW nameplate capacity.

“India has shared with us some days back the designs of two more projects that it is planning to construct on the River Chenab upstream Ratle hydropower project,” a senior official of PCIW told The News.

“We have submitted our objections on the designs of both the projects on components which include spillways, freeboard, and pondages. India is repeating the violations of design-related provisions of the Indus Waters Treaty of 1960 in the designs of its projects despite Pakistan’s repeated objections. Similar faulty designs that have been adopted in the Kishenganga and Ratle projects are being repeated by India in more hydropower projects on Pakistan’s rivers,” the official added.

Transboundary water expert Engineer Arshad H Abbasi said that a report recently by the Ministry of Power India demonstrates the speed at which India is developing dams on the River Chenab. The progress report reveals the rate at which India is finishing the bumper-to-bumper projects along the Transboundary River.

Abbasi, while referring to the report, said India had finished the road construction work while the MAT (miscellaneous area tunnel) excavation was underway. Some 90% of Power House Cavern’s excavation was finished, 15% of the dam abutment excavation was accomplished, and 84% of the Power House Access Tunnels excavation was finished. However, Indian environmentalists and the local populace forced India to halt this project indefinitely.

The progress report states that 624MW Kiru HEP is anticipated to be finished in early 2024, after 16 months. The Kiru power project will only cost INR4.27 per unit, in contrast to the high tariff of Pakistani hydropower projects.

On another project, 540MW Kwar Hydropower Project on the same river, work is in full swing. This project will be completed in 2026 after three years. On completion, this project will offer electricity only at the rate of INR4.07 per unit.

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Dar chairs the CCOP meeting; Blue World’s bid offer of Rs.10 billion is rejected.

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The Foreign Minister/Deputy Prime Minister chaired the Cabinet Committee on Privatization meeting.

Other committee members who attended the conference included the Federal Secretaries of several Divisions, the Ministers of Finance and Revenue, Industry and Food, Commerce, Power, and Privatization.

The CCOP took the PC Board’s recommendation into consideration and suggested that Blue World’s bid of 10 billion rupees for the sale of 60% of PIACL’s shares be rejected. The bid was rejected by the CCOP, who chose to follow the PC Board’s advice.

The government’s determination to sell out PIACL through government-to-government or privatization was reaffirmed by the CCOP.

The CCOP was pleased with the Aviation Division’s evaluation of PIACL’s sound financial standing.

Additionally, the CCOP established a committee, chaired by the Minister of State for Finance, to assess potential transaction possibilities for the privatization of the Roosevelt Hotel and the appropriate modes of adoption in light of existing legal rules.

Prior to its subsequent meeting, the CCOP also ordered that all difficulties be resolved and an agreement for the selling of services to an international hotel be concluded.

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The KSE-100 Index has surged by 790 points, resulting in an all-time peak for the stock exchange.

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The benchmark KSE-100 Index increased by 790 points, marking a new all-time high for the Pakistan Stock Exchange (PSX) at 94,982 points.

The record-breaking performance underscores a surge of optimism and investor confidence in the stock market.

As investors responded to favorable economic signals, the market experienced a significant increase of over 500 points in early trading. Later, the KSE-100 Index reached another record level of 94,786 points after adding 594 points to its upward trajectory.

This positive development comes as the State Bank of Pakistan’s (SBP) foreign exchange reserves saw an increase of $84 million, reaching $11.26 billion during the week ending November 8, according to data released by the central bank on Thursday.

This represents an increase of 0.75% from the previous week. In addition, the nation’s total liquid foreign reserves experienced a modest increase, increasing by $33.7 million or 0.21% week-on-week to $15.97 billion.

In contrast, commercial banks’ reserves experienced a decline of $50.3 million or 1.06%, ultimately settling at $4.71 billion.

Furthermore, the economic team of Pakistan has expressed confidence in the discussions with the International Monetary Fund (IMF). Minister of State for Finance Ali Pervaiz Malik, in an exclusive conversation with Samaa TV, claimed talks were moving in a positive direction.

Highlighting improvements in Pakistan’s economic conditions, Malik noted substantial progress over the past six months to a year. He emphasized that Pakistan’s current economic situation has seen significant enhancement, with a reduced current account deficit of only $100 million in the first quarter, a reflection of the government’s strategy to increase remittances and boost exports.

Malik shared that discussions with the IMF are primarily focused on external financing, and while there have been speculations about a potential mini-budget or an increase in the petroleum levy, he clarified that these are currently premature considerations.

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Positive IMF negotiations propel KSE-100 Index above 94,000 points

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As a result of investors’ optimism about the reported progress in the continuing talks with the International Monetary Fund (IMF), the Pakistan Stock Exchange (PSX) experienced a robust surge.

The benchmark KSE-100 Index of the PSX, which tracks market sentiment, rose 713 points to a new record high of 94,068 points, breaking above the 94,000-point barrier, as the trading session began.

Early in the day, the stock market began its upward trajectory as the KSE-100 Index steadily rose, gaining 574 points to reach 93,932 points. A possible agreement with the International Monetary Fund (IMF) might lead to more fiscal stability and back Pakistan’s economic reforms, which is why investors are so optimistic about the country’s future.

Officials from the Federal Board of Revenue (FBR) informed the International Monetary Fund (IMF) on Wednesday that the government would not be introducing a mini-budget and would instead continue to aim to collect Rs12,970 billion in taxes each year.

In line with continuing discussions with the Fund, FBR sources revealed that petroleum goods will not be subject to the General Sales Tax (GST).

The fact that Pakistan’s tax-to-GDP ratio has increased from 8.8% to 10.3%, a 1.5% gain viewed as a favorable sign of Pakistan’s fiscal policies, has reportedly pleased the IMF, who has voiced satisfaction at Pakistan’s recent economic performance.

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