Latest news with #K-Electric
Express Tribune
8 hours ago
- Business
- Express Tribune
K-Electric proposes formula for loadshedding-free Karachi
Listen to article K-Electric has proposed a formula to eliminate electricity load-shedding in the metropolitan city. Three hundred out of 2,129 feeders in the metropolis account for 87% of power losses, which is the main reason for blackouts, KE's CEO Moonis Alvi said while speaking to a delegation of the Council of Economic and Energy Journalists (CEJ) on Saturday. 'If the government takes over these 300 feeders and manages the internal electricity distribution in these areas, K-Electric will be much closer to making Karachi load-shedding-free,' Alvi said, adding that KE is ready to supply electricity to these 300 feeders, but the responsibility for bill recovery from these areas would rest with the government. CEO Alvi claimed that 70% of Karachi is already exempt from load-shedding. K-Electric is working on introducing new technology to prevent power pilferage from feeders. He warned that any tampering with PMTs (Pole-Mounted Transformers) could lead to technical faults that may take up to three days to fix. He reiterated the offer to the government to help manage the internal electricity system in these areas. The KE CEO further stated that K-Electric's Multi-Year Tariff (MYT) will not adversely affect ordinary consumers. Rather, it will encourage foreign investment in the city's power supply system. 'The National Electric Power Regulatory Authority will review the MYT each year based on the level of investment,' he added. Alvi said that implementation of the MYT could make Karachi up to 90% load-shedding-free by 2030. By then, the number of power consumers in the metropolis is expected to reach five million, and power transmission will increase to 5,000MW. Responding to a question, Alvi said that KE is ready to supply electricity to captive power industries by connecting them to the grid. "We are prepared to follow the agreed timeline with the government and stakeholders for this transition." Industrial activity in Karachi has increased over the past few months, leading to a rise in electricity demand, he added.
Express Tribune
20 hours ago
- Business
- Express Tribune
KCCI urges PM to release Rs23b power subsidy
Listen to article President of the Karachi Chamber of Commerce & Industry (KCCI), Muhammad Jawed Bilwani, has urged Prime Minister Shehbaz Sharif to ensure the release of the long-overdue Rs23 billion relief in electricity bills on incremental consumption. In a statement released on Friday, he called for the inclusion of this relief in the upcoming federal budget for FY2025-26, lamenting that although it was allocated in earlier budgets, it has yet to be disbursed — affecting only Karachi's industrial sector, while the rest of the country has received the benefit. As per the statement, Bilwani wrote a letter to the prime minister, acknowledging the government's steps to support the business community but expressed deep concern over the continued delay in providing the subsidy for the period from July 1, 2021, to October 21, 2023. He noted that Karachi's industries remain under immense financial pressure due to administrative and legal complications. He stated that the total subsidy for the period stands at Rs33 billion, of which Rs23 billion is undisputed and should have already been disbursed. Funds were earmarked in previous budgets — Rs22 billion in FY2021-22, Rs13 billion in FY2022-23, and Rs7 billion in FY2023-24 — but the subsidy has not reached recipients due to procedural delays involving K-Electric. "K-Electric (KE) operated without a stay order for nearly nine months yet failed to pass on the subsidy to consumers," said Bilwani, adding that NEPRA did not enforce compliance, and legal obstacles have dragged the issue. He pointed out that KE's appeals were dismissed by a tribunal in July 2024, but the matter remains stalled due to a stay order from the Islamabad High Court. KCCI has urged immediate verification of the figures by the Power Division and NEPRA, stressing that the verified subsidy should be reflected in the upcoming budget. Crucially, KCCI proposed that the undisputed Rs23 billion be paid directly to industrial consumers instead of routing it through KE to avoid further delays. "This is not just a legal obligation; it is a matter of economic justice and national interest," Bilwani said.
Business Recorder
21 hours ago
- Business
- Business Recorder
PM urged to expedite Rs23bn power bill relief
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani has appealed the Prime Minister Shehbaz Sharif to ensure that the long-pending relief of Rs23 billion in the electricity bills on incremental consumption is released without further delay by duly incorporating provision in the forthcoming federal budget for FY 2025–26. Despite being allocated in previous budgets, the relief has yet to be disbursed, causing severe financial stress to the Karachi's industrial sector only as this relief has been provided to the rest of the country. In a formal letter addressed to the Prime Minister, President KCCI acknowledged the government's efforts to address challenges faced by the business community and improve Pakistan's economic landscape. However, he expressed grave concern over the delay in releasing the subsidy for incremental electricity consumption from July 1, 2021, to October 21, 2023, stressing that Karachi's industries continue to bear the brunt of administrative and legal setbacks. He pointed out that the total subsidy amount for the period is Rs33 billion, of which Rs23 billion is undisputed and should have been disbursed. Budgetary allocations were already made in FY 2021-22 (Rs22 billion), FY 2022-23 (Rs13 billion), and FY 2023-24 (Rs7 billion), but the funds have not reached the intended recipients due to procedural and legal delays involving K-Electric. 'K-Electric operated without a stay order for nearly nine months yet failed to pass on the subsidy to consumers,' said Bilwani, pointing to the lack of enforcement by NEPRA and subsequent legal hurdles that have prolonged the crisis. He added that despite the dismissal of KE's appeals by a Tribunal in July 2024, the matter stands stalled due to a stay order granted by the Islamabad High Court. KCCI emphasized the need for immediate verification of the subsidy figures by the Power Division and NEPRA, urging the government to ensure that the verified amount is reflected in the upcoming federal budget. More importantly, KCCI proposed that the undisputed Rs23 billion be released directly to industrial consumers rather than through KE, in order to prevent further delays. 'This is not just a matter of legal obligation; it is a question of economic justice and national interest,' Bilwani stated. 'Ensuring that Karachi's industries receive this long-overdue relief is essential for sustaining industrial operations and maintaining economic stability across Pakistan', he added. Jawed Bilwani hoped that the Prime Minister will intervene swiftly to resolve the issue, restore confidence in government policy, and deliver the much-needed support to Karachi's industrial backbone. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business
- Business Recorder
KE tariff: Review plea will be filed with Nepra: minister
ISLAMABAD: The Minister for Power, Sardar Awais Ahmad Khan Leghari has announced that the federal government will file a review petition with Nepra regarding K-Electric's tariff, emphasizing that companies should generate profits through efficiency — not subsidies or charitable support. His statement came a day after he took to X and raised several questions about NEPRA's recent determination regarding K-Electric. On Thursday, speaking to the media after addressing an energy workshop organized by the Centre for Economic Research in Pakistan (CERP), Leghari said the Power Division is preparing the petition to ensure that neither the federal government nor electricity consumers face undue financial pressure. Nepra's decisions on KE tariffs: Power Div. flags potential consumers harm, urges revision 'We are moving towards privatization and K-Electric — like other private investors—should earn profits based on performance,' he said. 'Handouts are not a sustainable model; efficiency must take precedence. Regulatory laws must be enforced in all distribution companies (DISCOs).' KE's approved tariff is 18 per cent higher than previously approved Multi-Year Tariff. Responding to a question, Leghari said the Power Division would ask Nepra to ensure fair pricing for consumers. 'The burden of K-Electric's current tariff structure is being carried by consumers of other distribution companies through cross-subsidization and taxes,' he noted. 'We hope Nepra will make decisions that benefit both the country and its people,' he added. On net metering, the minister said the policy has been revisited and stakeholder consultations have been conducted. 'If approved, the revised net metering policy will be implemented within a month,' he stated. Leghari also highlighted reductions in electricity costs: 'Electricity prices have decreased by 31% for the industrial sector and by 50% for 18 million household consumers.' However, he acknowledged that climate change has led to a drop in hydropower generation, forcing reliance on more expensive sources. 'The Fuel Price Adjustment (FPA) varies monthly, but overall, electricity prices in Pakistan have declined,' he said. On the circular debt issue, Leghari revealed that the government plans to borrow from banks to eliminate the mounting circular debt soon. Earlier, while addressing the workshop, the minister said the Prime Minister will soon announce a new industrial tariff policy aimed at enhancing competitiveness. He reiterated the government's commitment to renewable energy, noting that 3,000 megawatts of furnace oil-based generation power plants have shut down in recent months. Leghari expressed the view that the government's aim is to reduce power tariffs on a sustainable basis. He stated that a revolution in alternative energy sources has arrived in Pakistan adding that solar energy is a promising source and that there has been an increase in solar energy production. 'In the past, estimates in the energy sector were not realistic,' he added. 'We have been conducting research and analysis in the energy sector for the past year. We are reviewing agreements with IPPs (Independent Power Producers) and trying to detach the government from purchasing electricity in the future,' he said. The minister further stated that the inclusion of the Bhasha Dam in the electricity system will be significant. 'We are trying to ensure that consumers do not suffer due to poor planning in the electricity system,' he said. 'Reforms are being made in the transmission system. We lack the technology to assess the pressure on transformers and feeders,' he added, noting that the government is working to ensure coal and gas-powered plants do not impact the environment. 'There is ample electricity available through the grid over the next three years,' he said. Copyright Business Recorder, 2025
Express Tribune
2 days ago
- Business
- Express Tribune
Stocks rally on blue-chip buying
Listen to article The Pakistan Stock Exchange (PSX) opened with renewed vigour on Thursday following a day's closure to mark Youm-e-Takbeer, which reflects the nation's nuclear achievements and military strength. The KSE-100 index gained ground as global equities rallied after a US court blocked the imposition of President Trump's new tariffs. European shares and US stock futures rose, lifting the mood at the PSX. Additionally, optimism ahead of the presentation of Pakistan Economic Survey and the federal budget on June 9 and 10, respectively, fuelled a buying spree, with expectations of relief for the agriculture sector, a narrowing fiscal deficit and export-friendly US trade measures. Crude oil gains supported energy stocks while blue chips led the advance of the index, which oscillated between the intra-day high of 119,639 and intra-day low of 118,482. Arif Habib Corp MD Ahsan Mehanti commented that stocks closed higher amid speculation in the pre-budget session with investors expecting relief for the agri-sector and as Pakistan-India tensions eased. Expectations of US tariff and trade incentives supporting exports, a falling fiscal deficit and surging global crude oil prices aided the bullish close at the PSX, he added. At the end of trading, the benchmark KSE-100 index posted a notable rise of 638.50 points, or 0.54%, and settled at 118,971.41. Topline Securities, in its review, wrote that the local bourse kicked off trading on a strong footing and wrapped up the session with a surge of 638 points (+0.54%) at 118,971. Intra-day excitement peaked with a high of 1,306 points, reflecting bullish sentiment across the board. Heavyweights stocks of sectors like cement, bank, fertiliser and oil contributed 413 points to the index gains, it said. Arif Habib Limited (AHL), in its commentary, said that after taking out last week's low, the KSE-100 remained range bound and was poised to push towards 118.2k. Some 65 shares rose while 34 fell with Lucky Cement (+2.82%), United Bank (+1.19%) and Fauji Fertiliser (+0.66%) being the top positive contributors. On the contrary, K-Electric (-6.28%), Pakistan Services (-2.28%) and MCB Bank (-0.39%) were the biggest drags. On the macro front, AHL said, China assured Pakistan of refinancing a commercial debt of $3.7 billion maturing between March and June. Also, Power Minister Awais Leghari stated that the government would review K-Electric's new tariffs. "Heading into the week's final session, the KSE-100 is down 0.11% week-on-week, with a sustained move towards 120k likely," it added. KTrade Securities remarked that activity at the PSX remained focused on blue-chip stocks, with cement, bank, fertiliser, communication and oil shares adding a cumulative 450 points to the index. Despite budget concerns, confidence emerged towards the end of the rollover week and focus was expected to be on blue chips, it predicted. According to JS Global analyst Muhammad Hasan Ather, stocks witnessed a 0.5% surge, climbing 1,306 points to the intra-day high of 119,639, as investor sentiment strengthened amid expectations of fiscal discipline and IMF loan inflows. Optimism was fuelled by signals of upcoming tax relief for the salaried class and alignment of the budget with the IMF guidelines, he added. Overall trading volumes increased to 741.7 million shares compared with previous tally of 690.4 million. The value of shares traded during the day was Rs23.9 billion. Shares of 466 companies were traded. Of these, 268 stocks closed higher, 159 fell and 39 remained unchanged. WorldCall Telecom was the volume leader with trading in 137.5 million shares, rising Rs0.13 to close at Rs1.43. It was followed by K-Electric with 119.6 million shares, losing Rs0.37 to close at Rs5.52 and Pakistan Telecommunication Company with 65.7 million shares, gaining Rs1.95 to close at Rs26.23. During the day, foreign investors bought shares worth Rs7.7 million, the National Clearing Company reported.
