Latest news with #EconomicCoordinationCommittee
Business Recorder
5 days ago
- Business
- Business Recorder
Ministry seeks ECC nod for new OMCs, dealers' digitisation
KARACHI: The Petroleum ministry is set to send a summary to the Economic Coordination Committee (ECC), in near future, for imposition of additional fees for oil marketing companies (OMCs) and dealers to digitize supply chain and petrol pumps in a bid to curb fuel smuggling. While talking to the media during his visit to the Sui Southern Gas Company Limited (SSGC) on Friday, Federal Minister for Petroleum Ali Pervaiz Malik said that the additional fee will be added to the price of petroleum products. However, he claimed that the imposition of fees would not lead to an increase in fuel prices. He mentioned plans to digitize the petrol pumps and supply chain system within the next 6-12 months. Minister said that the cost will be utilized to digitize vehicles transporting oil to pumps and petrol pumps to detect and discard smuggled diesel and other petroleum products. The digitization plan involves using radar-based technology, digital nozzles, and installation of CCTV cameras to monitor the supply chain. For this, the ministry will send a summary to the Economic Coordination Committee (ECC) within two months, seeking approval for the additional fee, which is expected to be around Rs1.35 per liter for OMCs and Rs1.40 per liter for dealers. The minister elaborated that the government has already registered all petroleum products nationwide in phase-I and plans to fully digitize trucks transporting petroleum products over the next two to three months. The nozzles will also be fully digitized in the next few months. The minister highlighted the importance of ensuring a consistent supply chain of energy products, making them competitive in the international market, and ensuring sustainability. He also mentioned the upgrading of the oil refineries to produce clean energy for a better environment. Malik further informed that the government is working to curb smuggled diesel with the help of border law enforcement forces and restructure the Oil and Gas Regulatory Authority (OGRA) as well. Federal Minister for Energy Pervaiz Malik has expressed optimism about the country's economy, citing signs of early recovery in the form of lower inflation, reduced electricity tariffs, and decreased petroleum and diesel prices. In a press briefing at SSGC head office on Friday, Malik also acknowledged that the government still faces significant challenges, particularly in the energy sector. 'Accumulation of circular debt and stopping losses in the gas sector are complex issues that require immediate attention,' he said. Despite these challenges, Malik expressed confidence that the government is making progress. 'We want to put Pakistan on a sustainable, inclusive, developed, and climate-friendly journey, and for this, the energy sector is being organized,' he said. However, Malik expressed concern over power producers not honoring their commitments to lift imported gas (RLNG) for electricity generation, which is contributing to the circular debt. The ministry might consider acquiring bank loans to reduce the circular debt, he added. The minister emphasized that the government is committed to providing relief to the public and ensuring the country's economic progress. Copyright Business Recorder, 2025
Business Recorder
20-05-2025
- Business
- Business Recorder
Net-metering connections: govt plans to digitalise process with new online portal
The government is planning to 'simplify and digitalise' the process of applications for new net-metering connections through a new online portal, it was learnt on Tuesday. In this regard, Energy minister Sardar Awais Ahmad Khan Leghari chaired a meeting on Monday to review the provision of new net-metering connections, according to a ministry statement. 'Immediate and effective solutions must be found for the issues faced in this process,' the minister was quoted as saying in the statement. He emphasised making the procedure for 'new applications simple, transparent, and user-friendly'. Leghari says govt to 'rationalise net metering,' aims to ease burden on consumers According to the statement, employees of electricity distribution companies be provided with 'necessary training regarding the new portal and that practical demonstrations also be conducted'. 'An awareness programme should be developed to educate electricity consumers about the use of the portal and its transparency,' Leghari said. Earlier this year, the government announced to reduce the buyback rate for net metering electricity to Rs10 per unit from Rs27 per unit, attributing the decision to 'significant increase in the number of solar net-metering consumers, with associated financial implications for grid consumers'. However, after backlash, the government later decided to broaden the scope of consultation on the Solar Net Metering Regulations approved by the Economic Coordination Committee (ECC) and re-submit the recommendations to the federal cabinet after taking further feedback from all stakeholders.
Business Recorder
19-05-2025
- Business
- Business Recorder
Second phase of auction for defunct power plants today
ISLAMABAD: In a bold stride towards energy sector reform and fiscal efficiency, the second phase of the auction of state-owned old and non-operational power plants will be held here on Monday. In this phase, three large power plants with a total capacity of 2,362 MW will be put up for auction, said a press release. The projects being offered for sale included Thermal Power Station Jamshoro (880MW), Thermal Power Station Muzaffargarh (1,350 MW), and Steam Power Station Faisalabad (132 MW). The combined reserve price for these projects has been fixed at Rs 26.62 billion. Inefficiencies hiking capacity charges highlighted The auction process is being carried out with complete transparency in the light of the government of Pakistan's energy reform agenda, and in line with directives of the Prime Minister, Economic Coordination Committee (ECC) of the Cabinet, and the Ministry of Energy (Power Division). The auction will take place at the office of GENCO Holding Company Limited, Islamabad from 9 am to 5 pm. It should be noted that seven different old thermal power plants have been successfully sold in the first phase of the auction, with a total bid of about Rs9 billion, which was higher than the reserve prices. The second phase of the auction is not only a step towards better utilisation of financial resources but it will also create new investment opportunities in the energy sector. Media representatives, investors, and energy stakeholders are invited to attend the event to ensure transparency.
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Express Tribune
18-05-2025
- Business
- Express Tribune
Three power plants go under the hammer today
The sun sets behind overhead power lines in Kuwait City -- the electricity ministry said power plants were unable to meet increased demand PHOTO:APP Three major state-owned power plants with a combined generation capacity of 2,362 megawatts will be up for sale today in the second phase of the government's auction of old and inactive energy assets. This bidding process – part of broader energy sector reforms – aims to attract new investment and ensure more efficient use of financial resources. The plants being auctioned are the 880MW Jamshoro Thermal Power Station; the 1,350MW Muzaffargarh Thermal Power Station, and the 132MW Steam Power Station Faisalabad. The reserve price for all three has been set at Rs26.62 billion. According to officials, the second phase is being conducted in line with decisions by the Economic Coordination Committee (ECC), directives from the prime minister, and guidelines from the Ministry of Energy (Power Division). To ensure transparency, bidders, media representatives, and relevant institutions have been invited to attend the event, which will take place at the offices of Genco Holding Company Limited. In the first phase of the auction, seven old thermal power plants were successfully divested, with the total bids exceeding Rs9 billion, well above their reserve prices, according to the officials. Officials noted that the success of the first phase has sparked investor interest in the second round. Today's auction is expected to be closely watched by investors, policymakers, and energy sector experts.
Express Tribune
18-05-2025
- Business
- Express Tribune
Balochistan's tube well solarisation stalls
Listen to article The delay in fund utilisation and the security situation have hampered progress on a multibillion-rupee project for solarising agricultural tube wells in Balochistan. The matter was taken up in a recent meeting of the Economic Coordination Committee (ECC). During the discussion, the ECC was informed that the decision on solarisation was taken in July last year, so the amount could not be budgeted and is now being claimed through the technical supplementary grant, which should fully discharge the federal government's responsibility for its share in the scheme. It was informed that Quetta Electric Supply Company (Qesco) was experiencing difficulties in retrieving the material due to ongoing security-related issues. It was further explained that due to the peculiar security situation, the provincial government is required to first clear the area before retrieval of the material, which is a time-consuming process. However, the task is underway, and the first validation report regarding the project would be furnished in the second week of May 2025 by a third party. It was emphasised that the report of the third party needs to be reviewed and therefore it would be appropriate if ECC undertakes that review. The Prime Minister's Office had conveyed to the Power Division on May 13, 2024 to firm up a plan for off-grid solutions, including the solarisation of tube wells in Balochistan, in the budget for FY 2024-25. Subsequently, consultative meetings were held under the chairmanship of the minister for power and the chief minister of Balochistan, in which the minister for commerce, minister of state for power, provincial ministers of Balochistan, secretary Power Division and chief secretary Balochistan, along with power sector specialists, participated. The recommendations were presented before the prime minister during a meeting on July 2, 2024, wherein the forum decided the solarisation of approximately 27,000 agricultural tube wells through compensation of up to Rs2 million per tube well having a legal electricity connection, subject to disconnection from the grid. It was also decided that the cost of providing part-financing for the solarisation of these tube wells, amounting to approximately Rs55 billion, would be borne by the government of Pakistan and the government of Balochistan in a 70:30 ratio, respectively. Accordingly, a detailed agreement with an implementation mechanism in the form of standard operating procedures and a steering committee was signed on July 08, 2024 by the secretary, Power Division, and the chief secretary, Balochistan, on behalf of the respective governments. The federal government has released an amount of Rs14 billion through a technical supplementary grant from the budgetary allocation of the National Food Security and Research Division under the Prime Minister's National Programme for Solarisation of Agriculture Tube Wells in Pakistan. The ECC was informed that the remaining amount of Rs24.5 billion is to be provided from the allocation under 'additional subsidy' for the power sector, as proposed by the Finance Division. It was highlighted that in order to achieve the revised CD flow target of Rs337 billion by June 2025, the Power Division needs to utilise the full amount of budgeted subsidies of Rs1,229 billion against the payables. It was also pointed out that the federal cabinet, vide its decision dated July 8, 2024, approved reallocation of Rs50 billion from the PSDP to fund the additional tariff differential subsidy requirement. This was also part of the Rs1,229 billion allocated for power sector subsidies. Accordingly, the division was of the view that presently the same amount can be allocated from the power sector budget as proposed by the Finance Division. However, in case of any shortfall, the same amount should be remitted back to the Power Division in June 2025 to meet the CD targets agreed with the Fund. Approval of the ECC was solicited to direct the Finance Division to surrender Rs25 billion from the PSDP for power subsidy as per the cabinet's approval dated July 8, 2024. Approval of a grant of Rs34.5 billion was sought for the solarisation of agricultural tube wells in Balochistan.
