K-P hydropower projects dropped from national plan
According to an official statement released on Monday, the committee discussed the 207 MW Madyan and 88 MW Gabral hydropower projects and other energy initiatives. The Special Assistant to the Khyber-Pakhtunkhwa (K-P) Chief Minister on Energy said land worth Rs5 billion had been purchased for the projects, and physical and financial progress had been made. However, the federal government removed them from the Indicative Generation Capacity Expansion Plan (IGCEP) list.
Federal Minister for Power Awais Ahmad Leghari said K-P authorities had not fully presented the Council of Common Interests (CCI)-approved power policy. Citing one clause without context was misleading, he added. Inclusion of these projects could raise electricity prices by Rs6 per unit by 2034.
The minister said the Power Division removed 8,00010,000 MW of projects from the plan, including some China-Pakistan Economic Corridor (CPEC) power projects, to shield consumers from expensive electricity. The government had also terminated agreements with five Independent Power Producers (IPPs) and renegotiated others, saving an estimated Rs3.4 trillion over four to five years.
He said DISCO losses were reduced by Rs191 billion this year. Electricity theft remained a challenge, but the competitive market target had been achieved, ending mandatory government power purchases.
The committee reviewed captive power plants, costly imported coal and LNG projects, and tariffs for the protected category. The chairman called for revising the protected category policy. Secretary Power Division confirmed a review was underway and that consumers using up to 200 units received subsidies. Aziz urged the introduction of multiple slab rates to prevent sudden tariff hikes.
The committee also discussed Net Hydel Profit (NHP). NEPRA officials said payments were being made to provinces, but K-P representatives called them too low and accumulating. The committee recommended clearing the backlog and paying at least Rs5 billion monthly to K-P. The chair directed that a meeting be held and a report submitted within a week. On wheeling charges, the minister said NEPRA rules had been amended and approved by the Cabinet, reducing the standard Rs28 rate to a Rs12 base rate. The proposal now awaits NEPRA's final approval.
Aziz raised concerns over the return on investment (ROI) of IPPs, with some projects showing ROIs as high as 100%. NEPRA officials attributed this to dollar-based payments. The committee asked NEPRA to provide the last five balance sheets of these power plants for review in the upcoming meeting.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
5 hours ago
- Express Tribune
PM inaugurates Chinese-led Special Economic Zone, welcomes $100m investment
Prime Minister Shehbaz Sharif meets the delegation of Chinese garments group, Challenge Fashion Private Limited, in Islamabad on August 15, 2025. Photo: Radio Pakistan Prime Minister Shehbaz Sharif on Friday inaugurated the Challenge Group Special Economic Zone (SEZ) and welcomed a $100 million investment by the Chinese garments giant, Challenge Fashion Private Limited, aimed at boosting Pakistan's textile exports and industrial capacity, Radio Pakistan reported. Speaking during a meeting with a delegation from the Chinese group, led by Chairman Huwang Weiguo, he expressed Pakistan's commitment to elevating its strategic and economic partnership with China to greater heights. 'Pakistan and China enjoy a time-tested friendship that has stood resilient through every challenge,' PM Shehbaz said. 'We are pleased to see our economic relations grow stronger, and we welcome more Chinese industries to set up operations in Pakistan,' he added. Also Read: Torrential rains claim 146 lives in K-P, five die in rescue helicopter crash Sharif lauded the Chinese firm's continued confidence in the Pakistani market, noting that Challenge Fashion Group has already invested $17 million in the country since 2014. The new Special Economic Zone, he said, will serve as a model for sustainable industrial development, facilitating technology transfer, skill enhancement, and job creation. He directed relevant authorities to extend all necessary support to ensure the swift operationalisation of the SEZ and reaffirmed the government's focus on advancing the industrial dimension of the China-Pakistan Economic Corridor (CPEC). The PM also highlighted Pakistan's keen interest in learning from China's expertise in the textile sector and announced that a China-Pakistan Business-to-Business Conference would soon be held in China to encourage private sector collaboration. Briefing the premier, the Challenge Group delegation shared that the $100 million investment over the next five years is expected to generate textile exports worth $400 million. Chairman Weiguo thanked the PM for the warm reception and hospitality, saying the group was committed to deepening its engagement with Pakistan's growing textile sector.
Business Recorder
7 hours ago
- Business Recorder
PM Shehbaz launches Chinese textile group's economic zone, expecting $400m in exports
Prime Minister Shehbaz Sharif launched on Friday a Special Economic Zone (SEZ) to be set up by a Chinese textile group, with a $100 million investment over five years, projected to yield $400 million in exports. The SEZ will be established by the Chinese garments group Challenge Fashion Private Limited that has already invested $17 million in Pakistan since 2014. The prime minister directed to provide all possible facilities to Challenge Group for the zone, reiterating that his government was committed to promoting the industrial component of the China-Pakistan Economic Corridor (CPEC) and benefiting from China's progress and expertise in the textile sector. Chinese textile group keen to develop textile factory: minister Highlighting the time-tested Pakistan-China friendship, Prime Minister Shehbaz said his government desired to take the bilateral ties to new heights as the economic relations between the two countries were a source of great satisfaction. He said Pakistan desired the Chinese industries to establish their units in Pakistan and also appreciated the confidence of Challenge Fashion Group in the Pakistani market. The prime minister told the delegation that a China-Pakistan Business-to-Business Conference would soon be held in China, providing an opportunity for collaboration between private businesses of both countries. Meanwhile, Challenge Fashion Group chairman Huwang Weiguo said his company was establishing a modern textile industry in Pakistan. He said the company would invest $100 million in th SEZ over the next five years and expected to generate $400 million in exports. The meeting was attended by federal ministers Ahsan Iqbal, Jam Kamal, Attaullah Tarar, Ali Pervez Malik, and Sardar Awais Ahmad Leghari, Special Assistant to the Prime Minister Tariq Fatemi, and relevant senior government officials.
Business Recorder
15 hours ago
- Business Recorder
China's July factory output, retail sales growth slump in blow to economic momentum
BEIJING: China's factory output growth slumped to an eight month low in July, while retail sales also slowed sharply, reinforcing the challenge confronting policymakers as they strive to shore up an economy in the face of soft demand at home and external risks. The underwhelming data, released by the National Bureau of Statistics (NBS) on Friday, come as Chinese policymakers navigate pressure on multiple fronts ranging from US President Donald Trump's trade policies to insufficient demand and excessive competition in domestic market. Industrial output grew 5.7% year-on-year in July, the lowest reading since November 2024, and compared with a 6.8% rise in June. It missed forecasts for a 5.9% increase in a Reuters poll. A temporary trade truce reached between China and the United States in mid-May, which was extended by another 90-days this week, has prevented US tariff rates on Chinese goods from reaching triple-digit levels. However, Chinese manufacturers' profits continue to take a hit from subdued demand and factory-gate deflation at home. Data released earlier this month by the NBS showed that the producer price index fell 3.6% year-on-year in July, matching the near two-year low recorded in June. Beijing has recently stepped up policy measures and made pledges to prop up domestic consumption and curb excessive price competition, as authorities strive to lift economic growth towards the government's 2025 target of around 5%. Retail sales, a gauge of consumption, expanded 3.7% in July, the slowest reading since December 2024, slowing from a 4.8% rise in the previous month and missing forecasts of a 4.6% gain. Fixed asset investment grew 1.6% in the first seven months of the year from the same period last year, compared with an expected 2.7% rise. It had expanded 2.8% in the first half. The world's second-largest economy has so far avoided a sharp slowdown in part due to policy support and as factories took advantage of the US-China trade truce to front-load shipments, but analysts say weak demand at home and global risks will drag on growth in coming quarters. Economic activity has also been impacted by extreme weather, from record-breaking heat to storms and floods across the country, disrupting factory production and day-to-day business operations. The latest Reuters poll projected China's GDP growth to slow to 4.5% in the third quarter and 4.0% in the fourth, suggesting that Beijing has its work cut out in getting households to spend more at a time of uncertainty over job security and mounting headwinds from Trump's global trade war. China's 2025 GDP growth is forecast to cool to 4.6% - falling short of the official goal - from last year's 5.0% and ease even further to 4.2% in 2026, according to the poll. Reuters
