logo
KP police uses teargas to disperse PPP rally

KP police uses teargas to disperse PPP rally

PESHAWAR: Police fired teargas shells into the participants of the 'Save KP' rally organized by the Pakistan Peoples Party (PPP) against corruption, lawlessness and bad governance in Khyber Pakhtunkhwa on Monday.
Hundreds of PPP workers from across Khyber Pakhtunkhwa gathered at historic Jinnah Park to stage the protest. They included a large number of women and children. Chanting slogans, they marched towards the Provincial Assembly.
Addressing the rally, the provincial president PPP Syed Mohammad Ali Shah Bacha accused the PTI government in Khyber Pakhtunkhwa for massive corruption, lawlessness and bad governance.
He said that though the PTI is ruling Khyber Pakhtunkhwa since last 12 years, but it had miserably failed to deliver and guarantee financial transparency and indulged in corruption. He especially criticised the PTI government for Rs.40 billion accounts scam in Kohistan and solarisation of Masaajid.
After the addresses of the PPP leaders, police started firing teargas shells to disperse the protestors. There were brief skirmishes between the police and the protestors. There were reports of alleged attack of PPP workers on a camp set up by the PTI workers for the release of the party founding chairman Imran Khan.
Copyright Business Recorder, 2025
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Chinese CPEC IPPs press Pakistan govt for Rs475bn dues
Chinese CPEC IPPs press Pakistan govt for Rs475bn dues

Business Recorder

time3 hours ago

  • Business Recorder

Chinese CPEC IPPs press Pakistan govt for Rs475bn dues

ISLAMABAD: As the date of Prime Minister Shehbaz Sharif's visit to China draws closer, Chinese CPEC Independent Power Producers (IPPs) have mounted pressure on the government for clearance of their outstanding receivables, which currently stand at around Rs 475 billion, well-informed sources told Business Recorder. Chief Executive Officers (CEOs) of Chinese CPEC IPPs have been writing letters to government functionaries, with copies also shared with the Chinese Ambassador to Pakistan. The Ambassador, sources said, is actively engaging with senior Pakistani officials to finalize the Prime Minister's agenda for bilateral meetings with Chinese leadership. In a recent letter, Wang Dongfang, CEO of Port Qasim Electric Power Company (PQEPC), expressed deep concern over the growing delays in tariff payments by the Central Power Purchasing Agency-Guaranteed (CPPA-G). Debt re-profiling with Chinese IPPs: PD, FD likely to share implementation proposal According to Wang, under the Government of Pakistan's guidance, the 1,320 MW Port Qasim Coal-Fired Power Project—one of the flagship energy ventures under the China-Pakistan Economic Corridor (CPEC)—has consistently provided clean, reliable, and economical electricity to the national grid. 'While we highly appreciate the efforts of the Government of Pakistan and CPPA-G in arranging funds and making tariff payments to IPPs, the total outstanding amount due to PQEPC has reached Rs 81 billion ($286.94 million) as of July 31, 2025, with a delay period of over six months, which could further escalate,' the letter stated. The CEO cautioned that shareholders and sponsors of the project, including those from China and Qatar, have conveyed 'significant discontent' over the payment backlog and have requested urgent measures to reduce the outstanding amount. 'We would like to notify that the current dues entitle PQEPC to suspend plant operations under Section 9.10 of the PPA, without any liability for Liquidated Damages (LDs),' the CEO warned. PQEPC also highlighted that its Energy Purchase Price (EPP) tariff is comparatively more competitive than oil- and RLNG-based power plants. Suspension of operations, the CEO warned, would result in a 'lose-lose' outcome, which both sides must avoid through timely settlement of dues to ensure sustainable generation and prevent triggering defaults under Loan Agreements and the Government of Pakistan's Sovereign Guarantee. Concluding his letter, Wang urged the Finance Minister, Senator Muhammad Aurangzeb and Planning Minster, Ahsan Iqbal to take immediate notice of the 'critical situation' and coordinate with relevant authorities to arrange financial support for CPPA-G so that the outstanding dues could be cleared without further delay. When an official was contacted for comments on the correspondence of Chinese CPEC IPPs on payment of outstanding amounts, he responded that since the government does not have enough fiscal space, the payments will be made on the basis of availability of resources. However, energy payments are being made to them through Escrow Account. The government has earmarked Rs 5 billion per month to be paid to the Chinese CPEC IPPs. Copyright Business Recorder, 2025

Circular debt: Pakistan govt moves to cut LNG import, reform gas sector
Circular debt: Pakistan govt moves to cut LNG import, reform gas sector

Business Recorder

time3 hours ago

  • Business Recorder

Circular debt: Pakistan govt moves to cut LNG import, reform gas sector

ISLAMABAD: The government is fine-tuning reforms in the gas sector, including the reduction of two LNG cargoes per month, along with other measures aimed at bringing the circular debt flow of the sector to zero, well-informed sources in Petroleum Division told Business Recorder. Currently, the gas sector's circular debt stands at around Rs 2.6 trillion, mainly due to lower RLNG consumption by the power sector. The International Monetary Fund (IMF) has directed the government to eliminate the gas sector's circular debt flow. The fourth meeting of the committee was held on August 8, 2025, under the chairmanship of the Minister for Petroleum at the Task Force Headquarters, Army Air Defence HQ, Westridge, Rawalpindi. The meeting was attended by Advisor to the Prime Minister on Privatization, Lt-General Zafar Iqbal, Secretary Petroleum, and representatives of OGRA. IMF delineates steps to address gas circular debt The Petroleum Minister briefed participants on his recent meeting with the Prime Minister, during which the Task Force on Power presented issues arising from reduced LNG off take by the power sector. He emphasized the need for a clear strategy ahead of the planned visit to Qatar. The Minister also updated the forum on the progress made in the previous three committee meetings, where the work of four sub-committees was reviewed: Sub-committee 1–led by the Secretary Power, tasked with making recommendations on LNG demand synchronisation for power plants. This includes improved forecasting and coordination, as well as addressing queries raised earlier regarding Energy Purchase Price (EPP) comparisons between imported coal and RLNG. Sub-committee -2 –progress on the Gas Circular Debt Management Plan (CDMP), to be presented by the Advisor to PM on Privatization. Sub-committee 3 led by the Secretary Petroleum Division, focusing on recommendations for the reduction/review of RLNG sale price components and add-ons. Sub-committee 4 headed by the Chairman OGRA, tasked with reviewing components of revenue requirements, particularly the return-on-asset formula for the Sui companies. The progress reported by the conveners of the sub-committees provided is as follows : Sub-Committee-1: LNG Demand Synchronization: Secretary Power noted that based on the discussions held in the third review meeting, options of comparing energy purchase price of imported coal versus RLNG have been prepared. He stated that 50 percent generation from imported coal-based plants is a must off-take, however, less generation is being taken from these plants. He further stated that RLNG based power plants cannot be declared as 'must-run' power plants as the same will have implications on overall power generation basket. He emphasized that a technical level coordination committee needs to be constituted between Power and Petroleum Division to address the issues of RLNG demand and off-take. Naveed Qaiser, a representative of Power Planning & Monitoring Company (PPMC) which has squeezed the roles of PPIB and CPPA-G presented the numbers of imported coal versus RLNG energy purchase price as was asked by the Committee in its 3rd meeting. He said that at current RLNG price power sector is consuming upto 340 mmcfd of RLNG which can have additional consumption of upto 174 mmcfd at RLNG tariff of Rs. 1,500/mmbtu and 127 mmcfd at RLNG tariff of Rs. 2,000/mmbtu respectively. He however, highlighted financial implications on power generation basket in both incremental RLNG usage options of Rs. 88 billion and Rs. 41 billion per annum. Lt-General Zafar Iqbal pointed out that Task Force team has worked out that RLNG at WACOG of Rs. 2,200/mmbtu will manifold increase its consumption in power sector. He emphasized that there is on-going study on conversion of imported coal power plants to local coal and consumption of additional RLNG would, at indicated tariff, be beneficial for both Petroleum and Power sectors. He further explained that country's average demand of power during winters is 12,500 MW whereas same is 25,500 MW in summer when all plants are up and running. He stressed that Power Division may review the numbers of the comparative tariff with imported coal where RLNG intake can increase i.e., replacing the imported coal-based generation. Advisor to PM on Privatisation, Muhammad Ali also emphasized reworking of fuel cost numbers of imported coal versus RLNG in respect of increased consumption of RLNG in power so that demand numbers for LNG cargoes could be firmed. He proposed 24 cargoes be taken into NPD for CY26; Secretary Petroleum proposed extension of contract beyond 2031 was better than NPD route to address the issue of surplus cargoes. =The Committee decided that Secretary Power and Secretary Petroleum will work towards institutionalizing a coordination mechanism on short-term and it would be shared in the next meeting for concurrence of the Committee. The demand goes upto 12,500 MW in winters, in summers when the production goes up to 25,500 MW, all thermal plants are operating. If power substitutes the imported coal, at the RLNG rate of Rs. 2,000/mmbtu price, the Power Division maintained that it could lift 127 mmcfd more and that this analysis may be conducted by Task Force and Power Division on price and additional lift-off. The chair decided that sub-committee-1 firms up its recommendations with task force and submit its final report. Sub-Committee-2: Circular Debt Mitigation: Advisor to PM Privatisation, Muhammad Ali informed that a meeting with KPMG, Task Force team and Petroleum Division has already been held wherein detailed data has been exchanged. He stated that Task Force team is closely working with KPMG to develop options on gas CDMP and same will be presented next week. On the request of Advisor, Asad Hussain of Task Force presented concept paper and basic premise for CDMP work. He highlighted that five cash inflow options for settlement of stock of gas CD which included: (i) savings from LNG cargoes diversion (ii) imposition of PL of Rs. 5/liter (iii) use of incremental dividends of SOEs (E&P companies) (iv) RLNG receivables from power sector and (v) 100 percent waiver of LPS/interest payable to gas producers. He highlighted that Task Force is closely working with KPMG to finalize the gas CDMP. Lt-General Zafar Iqbal observed that 24 surplus cargoes per annum should be taken for contract extension beyond year 2031 third-party sale/ Net Proceed Differential. Secretary Petroleum Division suggested that if power demand increases at reduced RLNG tariff then number of cargoes should be reviewed and confirmed before visit to Qatar. He also proposed IMF sensitivities, Reko Diq commitments and foreign listing (GDR requirement be kept in mind). Lt-General Zafar Iqbal suggested that all cash inflows/revenues especially PL should be ring-fenced for settlement of gas CD. Minister for Petroleum Division also supported the same, citing N-52 formula, however, he observed that utilisation of collections of levy previously granted to Power Division as allowed by Finance Division should be extended to Petroleum Division for settlement of circular debt (as tariff reduction delinked). Representative from KPMG highlighted that auditors of SOE's may also be taken on board with specific reference to IAS-39. On the apprehension of committee at projected cash flows of SOEs and dividends without hurting their future investments in important projects like Reko Diq, Advisor to PM suggested that KPMG and Asad Hussain develop the working in the CDMP. Minister for Petroleum Division recommended that Additional Secretary (Policy) and Asad Naqvi, KPMG and CEOs of the companies discuss the proposed scheme to be discussed in the next meeting. He emphasized that CEOs/CFOs of the SOEs must satisfy the committee on the above stated matters. Sub-Committee-3: LNG Tariff Rationalization : Secretary Petroleum Division highlighted that sub-committee is working on RLNG cost components which include the PQA charges and a meeting in this regard is scheduled with PQA. He stated that numbers are being firmed up and would be presented in next meeting of the committee. He highlighted that with respect to scope of the sub-committee regarding LNG demand increase, a case has been moved for relaxation of moratorium in respect of pending and new individual gas connection applications. Minister for Petroleum Division observed that since option of a reduction of LNG cargoes is on the cards, therefore, optimum utilization of terminals needs to be worked out for cost reduction. It was noted that the option of shelving of 2 LNG cargoes per month working done so far takes into account the optimal combination for terminal capacity utilization which comprises of regasification of 3 LNG cargoes at terminal-1 and 4 LNG cargoes at terminal -2. Minister for Petroleum advised that sub-committee holds meeting(s) and finalizes its recommendations early next week. Sub-Committee-4: Domestic Gas Tariff Efficiency and Transparency: Chairman OGRA, being lead of this sub-committee made a presentation on the work done by the committee so far. He highlighted that for the review of the key component of the revenue requirement i.e, Return on Asset (RoA), OGRA has issued Letter of Intent (LoI) to selected consultant who will submit study/report within 90 days. He stated although the cost of gas alone is 89% of the total revenue requirements and there is little room for squeezing the cost components, however, OGRA is objectively reviewing the other components like fixed/ variable costs, T&D costs especially HR benchmarking. He informed that Sui Companies demonstrated improvement in their UFG against OGRA approved benchmark. He informed that as per the UFG study done in year 2018 through KPMG, UFG benchmark of 7.6 percent was fixed for a period of 5 years which comprises of 5 percent technical allowance and 2.6 percent based on meeting 30 Key Monitoring Indicators. He stated that digitization of gas flow stations like Sale Meter Station, Town Border Station and Consumer Meter Station is giving real-time information to companies and helping isolate the loss-making areas. Minister for Petroleum Division observed that in-line with licence condition of the Sui companies, the UFG targets need to be reviewed periodically. He also enquired after the UFG study done in 2018 which was valid until 2023, on how OGRA is benchmarking UFG targets thereafter. OGRA Chairman responded that earlier OGRA used to apply benchmark on both T&D UFG, however, now that practice was discontinued in FY23 and UFG targets are set separately for transmission and distributions segments. It was noted that OGRA is considering to do a new study on UFG benchmarking which would take 6-8 months' time. Minister for Petroleum Division advised that new UFG study be completed by OGRA by November 30, 2025. He also stressed upon the need that sub-committee should make recommendations at review of revenue requirements on quantitative basis (instead of qualitative basis) keeping materiality of report before the next meeting of the committee. Insiders claim that the Power sector Task Force has done extensive work on the issue of excess gas in the country and how to resolve RLNG supply issue. The officials also confirmed that senior members of the Task Force made a detailed presentation to the Prime Minister and senior government ministers and officials on roadmap for RLNG cargoes and ways to reduce gas prices for industry and power sector. Sources say this was aimed at improving energy security by increasing use of domestic gas and increasing exports through reduction of gas price for industry and power. Among various measures proposed, the RLNG ring-fencing mechanism was suggested to be done away with and having one blended gas price for industry and power. The final report will be submitted to the Prime Minister's Office as per Notification of the Committee. It was advised that meeting of the main committee may be held at on August 18, 2025 (today) at Head Quarters of Task on Power, Rawalpindi. Copyright Business Recorder, 2025

The glut that ate the rebate
The glut that ate the rebate

Business Recorder

time7 hours ago

  • Business Recorder

The glut that ate the rebate

BR RESEARCH: When China tweaks its export policies, the ripples are felt across the world's energy markets. So, when Beijing quietly trimmed its solar export tax rebate from 13% to 9% on December 1, 2024, the question wasn't whether anyone would notice—it was who would feel it most, and how soon. For a country that supplies more than four-fifths of the world's solar modules, even a small change on paper could, in theory, shift billions of dollars in trade flows, jolt global prices, and test the energy ambitions of import-reliant nations like Pakistan. Yet nine months on, the reality tells a more complicated story—one of stubborn oversupply, shifting trade routes, and a Pakistan that has doubled down on Chinese solar despite policy turbulence at home. The rebate cut was part of a broader policy adjustment that also affected aluminium, copper, batteries, and refined oil products, and was framed as a strategic move to ease overcapacity, curb low-margin exports, channel more supply into China's own renewable rollout, and reduce friction with trading partners over subsidies. But despite fears that this change could trigger a sharp rise in solar prices or a collapse in shipments, the numbers tell a different story. In the first half of 2025, Chinese module exports totalled around 127 GW, just 3% less than the same period a year earlier. Industry experts opine that the bigger change came in solar cell exports, which surged by roughly 70% as more countries moved assembly in-house. Export values fell sharply—about 26% lower year-on-year—because prices stayed near record lows. Expert resources tell BR Research that by late 2024, modules were selling for about $0.09/W FOB China, and through mid-2025 they hovered between $0.08 and $0.09/ upticks followed Beijing's call to end 'price wars,' but oversupply continued to set the tone. Trade flows shifted too. Europe slowed imports after a stockpiling spree in 2024, while the Global South accelerated. Pakistan was a standout, importing around 16.6 GW from China in 2024 and another 10 GW in just the first four months of 2025—around 12% of China's module exports early in the year. Between January and April 2025, solar met roughly a quarter of Pakistan's utility electricity needs. This surge came despite talk of reducing net-metering buyback rates, revising rooftop rules, and imposing a 10% import duty. For now, ultra-cheap Chinese hardware outweighed the uncertainty. For Pakistan, the rebate cut's direct price effect has been negligible. At $0.09/W, a four-percentage-point cut in the rebate adds just $0.0036/W—around Rs 10,000–11,000 on a 10 kW system, an amount lost in the rounding of total project costs. Prices stayed low, exports remained plentiful, and the market glut continued to dominate. If prices do rise later in 2025 or 2026, the bigger triggers will be domestic policy shifts, tax changes, and currency movements, with only a minor role for any lasting Chinese price discipline. The Finance Act 2025 replaced a full sales-tax exemption with a 10% GST on imported panels, and planned changes to net metering could see buyback rates cut to Rs 10–11 per unit, reshaping project economics. A weaker rupee would directly inflate import costs, while a genuine price floor in China could add $0.005–0.01/W. Freight rates, now easing to around $2,400–2,500 per 40-foot container, are currently helping rather than hurting as per industry experts. Battery economics could also shift if net metering changes push rooftop owners toward storage, allowing them to use surplus power themselves instead of selling to the grid at low rates. China cut the export rebate on batteries as well, but global oversupply from the EV sector has kept prices low. For Pakistan, the bigger risks are local distributor markups if demand spikes and exchange-rate swings. Even with a 4–5% global price rise, batteries could remain attractive if gross metering significantly erodes export revenue. Over the longer term, China's policy points to a gradual rebalancing toward domestic renewable deployment and higher-value exports, with emerging markets likely to absorb a larger share of its overseas shipments as developed economies tighten trade rules. Mild price stabilization is possible if Beijing reins in overcapacity, creating space for other producers like Vietnam, Malaysia, Turkey, and the UAE—though at higher costs. For Pakistan, the strategic challenge is clear: with over 90% of its PV imports coming from China, it remains vulnerable to supply and pricing shifts beyond its control. Diversification would mean higher costs, but could start with local module assembly and testing, building toward upstream manufacturing through joint ventures. Securing supply will also require policy planning for recycling, currency risk, and alternative sourcing. In the end, the December 2024 rebate cut has barely budged global or Pakistani solar prices. Oversupply is still the key driver, and Pakistan's imports have continued at pace. In the short term, local taxes, currency stability, and net-metering reforms will shape solar affordability far more than China's rebate mechanics. In the long term, cutting reliance on a single supplier and building domestic capability will be essential if Pakistan wants a stable, affordable path to its clean energy goals.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store