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Express Tribune
30-05-2025
- Business
- Express Tribune
Govt bodies owe SNGPL Rs37b in dues
The Sui Northern Gas Pipelines Limited (SNGPL) has issued reminder notices to various federal and provincial departments and institutions for payment of outstanding dues amounting to more than Rs3.72 billion. The company has urged all government entities to settle their dues promptly to avoid further action. Final notices had already been sent to these defaulters in April 2025. According to the notices, government hospitals owe the company a total of Rs1.4125 billion. The hospitals in the federal capital owe the SNGPL Rs183.62 million, hospital in Khyber Pakhtunkhwa (K-P), Rs106.08 million and hospital in Punjab are supposed to pay Rs1.12 million to the company. The police departments in the federal capital and the two provinces where the company operates — Punjab and the K-P — owe it Rs499.7 million with Rs141.5 million to be paid by Islamabad Police, Rs63.13 million to be paid by the K-P Police and Rs295.04 million to be paid by Punjab Police. The jail in the K-P and Punjab are also supposed to pay Rs607 million to the company with Rs38.6 million to be paid by prisons in the K-P and Rs569 million to be paid by prisons in Punjab. The Capital Development Authority (CDA) also owes the SNGPL Rs251.2 million. The Public Works Departments (PWD) owes Rs141.6 million with Rs118.46 million at federal level; Rs5.028 million in the K-P and Rs18.114 million in Punjab. Educational Institutions are also due to pay the gas company a total of Rs115.28 million with institutions at the federal level owing it Rs65.58 million; the K-P, Rs17.14 million and Punjab, Rs32.554 million. According to the notices, Commandant Police Training College at Sihala, owes it Rs146.37 million; Lahore' General Hospital, Rs97.74 million; Punjab House Executive Engineer, Rs89.21 million; Lahore's Mayo Hospital, Rs85.7 million and PIMS, 61.4 million.
Business Recorder
27-04-2025
- Business
- Business Recorder
Peak-hour power tariff: APTMA urges govt to share constraint details
ISLAMABAD: The All Pakistan Textile Mills Association (Aptma) has requested the government to share details of the constraints preventing the removal of the peak-hour electricity tariff for the industrial sector. In a letter addressed to Prime Minister Shehbaz Sharif, Aptma Secretary General Shahid Sattar stated that, despite some progress, the prevailing electricity tariff of 10–11 cents/kWh remains above the regionally competitive benchmark of 9 cents/kWh. Competing economies offer electricity at 5–9 cents/kWh, putting Pakistan's energy-intensive textile sector at a disadvantage. The high cost of energy continues to hinder export competitiveness and manufacturing growth, he noted. Grid Transition Levy: APTMA urges PD to address inaccuracies 'A further reduction in industrial power tariffs can be achieved by abolishing the Time of Use (ToU) power tariff structure for industrial consumers,' Sattar adding, 'This would be revenue-neutral, as industry is projected to consume about 32% more electricity during current peak hours, according to Nepra data, thereby offsetting revenue losses from the higher ToU tariff.' According to Aptma's assessment, this adjustment would reduce the effective weighted average tariff for industrial consumers from Rs29.48/kWh (10.57 cents/kWh) to Rs28.36/kWh (10.16 cents/kWh)—a reduction of Rs1.12/kWh. Increased electricity consumption would improve grid utilization and reduce stranded capacity, potentially lowering the average power purchase price by an additional Rs0.14/kWh. This reduction could be passed on to consumers through Quarterly Tariff Adjustments (QTA). 'The ToU structure is an outdated mechanism, introduced when Pakistan faced acute power shortages and needed to discourage peak-hour consumption,' the Association argued. 'However, with surplus generation capacity today and stranded capacity contributing to high tariffs, the continued application of ToU pricing is counterproductive.' Aptma emphasized the need to replace the ToU structure with a uniform tariff at the off-peak rate, to promote maximum power usage, improve grid efficiency, lower per-unit costs, and enhance industrial competitiveness. The Association called on the government to eliminate the ToU structure for industrial consumers and implement a uniform AS-II tariff based on the current off-peak rate. In a recent communication with the Power Division, Aptma noted that its team met with senior officials on April 18, 2025, to discuss the issue. During the meeting, Power Division officials outlined existing challenges to removing the peak-hour tariff, citing system limitations, demand fluctuations, and fuel cost dynamics as key factors. The Power Division assured Aptma that the analysis presented, along with detailed data on real-time system demand and fuel costs, would be shared with the Association. 'We look forward to receiving this information at the earliest, so we can review it thoroughly and develop a practical proposal to reduce industrial energy costs while increasing demand on the national grid—ultimately contributing to broader economic growth,' Aptma concluded. Copyright Business Recorder, 2025
Express Tribune
21-03-2025
- Business
- Express Tribune
6,000 Utility Stores workers to be laid off as privatisation stalls
Listen to article The government has decided to place 5,000 permanent employees of the Utility Stores Corporation (USC) in a surplus pool, while 6,000 contract and daily-wage workers will be laid off, according to a briefing provided to the Senate Standing Committee on Industries and Production, Express News reported. The meeting, chaired by Senator Aoun Abbas, provided an update on the future of the USC, revealing that the corporation is on the government's privatisation list. The managing director of USC told the committee that the privatisation process has been delayed due to the absence of a two-year audit. The privatisation will proceed once the audit is completed, with a target completion date of August, 2025. The director further explained that in the interim, 5,000 permanent employees will be placed in a surplus pool, while 6,000 contract and daily-wage workers will be laid off. These workers will not receive severance packages when the corporation is privatised. Currently, the USC operates over 3,200 stores nationwide, with 1,700 loss-making outlets expected to be closed. Following privatisation, only about 1,500 stores will require staff. Additionally, around 1,000 franchises operate under the USC. The corporation's monthly operational cost was previously Rs1.12 billion, but following the closure of unprofitable stores, this has been reduced to Rs520 million per month. The committee members also expressed dissatisfaction over the absence of Special Assistant Haroon Akhtar and the secretary during the meeting, which was intended to brief the committee on the role and functions of the Sugar Advisory Board. In response, the committee decided to summon the Competition Commission for the next session. During the meeting, Senator Aun Abbas raised concerns over rising sugar prices despite a surplus in the country's sugar stock. He highlighted that 44 per cent of Pakistan's sugar mills are owned by political families and questioned why sugar prices were increasing when there was an adequate domestic supply. He pointed out that the government had permitted the export of 700,000 tons of sugar this fiscal year. Senator Abbas emphasised that sugar mill owners tend to raise prices toward the end of the crushing season and called for an explanation from both the Competition Commission and sugar mill owners on the matter. The committee plans to invite the Competition Commission and sugar mill owners to provide clarity on the issue of rising sugar prices.
