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IPPs in Pakistan are receiving billions of rupees while not generating any electricity.

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In the worst-case scenario, power plant agreements have led to capacity payments to Independent Power Producers (IPPs), which are fully funded by the impoverished population.

The five priciest IPPs in Pakistan, as per Khawar Ghuman, are included below.

Rousch Power Plant: Operating for 30 years and built in 1999, it charges 745 PKR per unit for power.

China Power Hub: At Rs350 per unit, the plant generates power.

At 177 PKR per unit, Port Qasim Electric offers energy.

Established in 1999, Saba Power Plant generated energy at a rate of 117 PKR per unit for a duration of 30 years.

At a cost of 95 PKR per unit, the Pakgen Power Plant generates electricity.

What Does a Capacity Payment Mean?
In order to ensure that the power producing firm can continue to generate electricity and meet additional demand, customers must pay a monthly capacity payment. This payment is known as the capacity payment.

It’s noteworthy that US dollars, not Pakistani rupees, are used to pay IPPs for capacity.

Gohar Ejaz, the former caretaker minister of commerce, has been educating people about the government’s errors and how, if left unchecked, they will worsen the nation’s economic circumstances through his remarks and social media posts.

Dr. Gohar Ejaz described in detail the performance of the five most costly power plants in the nation in one of his postings.

The Rousch Power Plant received payments of Rs1.28 billion between January and March 2024, while not producing any power, according to Dr. Gohar Ejaz. Parallel to this, the China Power Hub was given Rs. 33 billion in the same time frame even though it didn’t generate any electricity. Also compensated, without production, was Port Qasim Electric for over 30 billion PKR.

In addition, Jamshoro Power (GENCO I) received payment of about 930 million PKR—without producing any electricity—and Punjab Thermal Power received payment of over 10 billion PKR between January and March.

Sapphire Electric Limited received 590 million PKR for going three months without generating any electricity, while Seif Power Project was awarded 670 million PKR.

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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