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Express Tribune
4 days ago
- Business
- Express Tribune
CPEC power dues rise to Rs423b
Listen to article The government managed to restrict the outstanding dues of China-Pakistan Economic Corridor (CPEC) power projects to Rs423 billion by June this year, which might also be settled soon, subject to early resolution of the issue of interest on late payments. The official documents showed that as of the end of fiscal year 2024-25, the outstanding energy payments to Chinese power plants amounted to Rs423 billion. These were Rs22 billion, or 5.5%, more than the preceding fiscal year. The details showed that since 2017, the country has paid Rs5.1 trillion in energy costs to the 18 Chinese power plants, which were equal to 92.3% of the billed amount, including interest. The Pakistani authorities believe that the actual remaining cost of energy was less than Rs300 billion and the rest of the amount was due to late payment surcharges. The government is in the process of taking nearly Rs1.3 trillion in fresh loans from the local commercial banks to retire the circular debt that it owes to the state-owned power plants, nuclear power plants, privately owned plants, and the Chinese plants. According to one of the conditions set by the federal cabinet, the authorities will negotiate with the power producers to waive off the interest payments in return for taking upfront full payments, said a government functionary who is part of these discussions. The Chinese might not waive off the interest cost due to their internal requirements, which would leave the government with the option of either making full payments in one go or clearing the dues as the fiscal space is created. The Rs423 billion unpaid debts are in violation of the 2015 CPEC Energy Framework Agreement, which binds the government to fully clear the dues irrespective of whether the authorities can recover the amounts from the end consumers. Along with security, the non-fulfilment of CPEC contracts is one of the reasons for slow progress in financial and commercial relations between the two nations. Prime Minister Shehbaz Sharif is expected to visit China next month, and one of the agenda items is luring Chinese investors to Pakistan by addressing their concerns. Under the CPEC Energy Framework Agreement, Pakistan was required to create a revolving fund with 21% of the power invoices to protect Chinese firms from the circular debt crisis. However, the previous government opened a Pakistan Energy Revolving Account at the State Bank of Pakistan in October 2022 with Rs48 billion in annual allocations. But it limited the withdrawals to Rs4 billion per month, leading to the current Rs423 billion debt stock. The documents show Pakistan owed Rs87 billion to the imported coal-fired Sahiwal power plant, while the company received Rs1.14 trillion in the past eight years of its operations. The country also owed Rs69 billion to the coal-fired Hub power project, compared to the Rs834 billion worth of total claims. The outstanding remaining dues of the coal-fired Port Qasim power plant were Rs85.5 billion, as against the total bills of over Rs1 trillion. The Port Qasim plant's dues were roughly Rs15 billion higher than the preceding fiscal year. The Thar Coal project dues remained at Rs55.5 billion. It had claimed Rs566 billion worth of dues. The outstanding dues of Karo power company were Rs11 billion, Engro Powergen Thar Coal Rs38 billion, Matiari Lahore Transmission Line Rs28.5 billion, and Thar Energy Limited Rs8.3 billion. The Chinese government has repeatedly raised this issue with Pakistan through diplomatic channels, including Pakistan's embassy in Beijing and its own embassy in Islamabad. It is expected that once the procedural formalities are completed by the commercial banks and the federal government's entities, the circular debt amounts would start going down. The government had reached a deal with commercial banks to borrow Rs1.25 trillion at less than an 11% interest rate as part of its three-pronged strategy to eliminate the circular debt and restore power sector viability. The banks are expected to disburse the loans soon after fulfilment of the procedural requirements. The deal is said to be about 3% to 5% cheaper than the interest on the existing facilities and the penalties that the government pays for not making timely payments of the energy purchases. The Rs1.25 trillion debt is being taken on the books of the Central Power Purchasing Agency (CPPA), and it would not be part of the overall public debt. The government was paying up to 14% cost to the commercial banks on the loans that it had taken in the past to retire the circular debt, and up to 16% price to the Independent Power Producers (IPPs) for not making timely payments to them. Out of the total Rs2.4 trillion existing circular debt stock, there is a need to resettle the Rs1.5 trillion principal amounts to eliminate the debt stock. Out of the Rs1.25 trillion, about Rs660 billion will be settled against the Power Holding Limited debt. This debt had been obtained in the past at a rate of KIBOR plus up to 2%. The nuclear plant powers will get around Rs280 billion, while the LNG power plants are expected to receive Rs220 billion. Pakistan's earlier efforts to get the energy debt rescheduled have not succeeded, according to the government sources. Finance Minister Muhammad Aurangzeb and Energy Minister Sardar Awais Laghari were leading these efforts. The Pakistani officials had requested a five to eight-year extension for repaying energy debt, converting US dollar-based interest payments to Chinese currency, and reducing overall interest rates for both CPEC and non-CPEC Chinese-funded projects.
Business Recorder
5 days ago
- Business
- Business Recorder
Weekly SPI inflation up 4.07%
ISLAMABAD: The Sensitive Price Index-based inflation increased by 4.07 percent for the week ended July 24, 2025 compared to 0.38 per cent in the previous week. The statistics issued by Pakistan Bureau of Statistics (PBS) showed a major increase in the prices of gas charges for Q1 29.85 per cent, tomatoes 22.93 per cent, electricity charges for Q1 21.46 per cent, eggs 3.96per cent, garlic 1.39 per cent, cigarettes 0.51 per cent, beef 0.46 per cent, rice basmati broken 0.45 per cent, powdered milk 0.29 per cent, energy saver 0.23 per cent and fresh milk by 0.16 per cent. On the other hand, decrease is observed in the prices of chicken7.95 per cent, sugar4.25 per cent, onions 3.05 per cent, bananas 2.81per cent, LPG2.09 per cent, potatoes 1.82 per cent, wheat flour 1.19 per cent, moong 0.43 per cent and pulse gram 0.32 per cent. SPI-based inflation slows down During the week, out of 51 items, prices of 14 items (27.45 per cent) increased, 12 items (23.53 per cent) decreased and 25 items (49.02 per cent) remained stable. While major increase is observed in the prices of ladies sandal 55.62 per cent, gas charges for Q1 29.85 per cent, sugar 21.89 per cent, moong 16.42 per cent, beef 14.08 per cent, vegetable ghee 2.5kg 12.46 per cent vegetable ghee 1kg 12.17 per cent, gur 11.30 per cent, eggs10.70 per cent, firewood 10.52 per cent, cooked daal 9.47 per cent, and printed lawn 7.32 per cent. Major decrease is observed in the prices of onions 49.13 per cent, tomatoes 30.2 per cent, electricity charges for Q1 24.23 per cent, garlic 23.64 per cent, wheat flour 23.21 per cent, maash 20.76 per cent, tea Lipton 17.93per cent, potatoes 15.11 per cent, masoor 8.86 per cent and petrol 1.24per cent. The SPI for consumption groups up to Rs17,732 with an increase of 3.98 per cent recorded at 317.34 points. The SPI for consumption group of Rs17,732 to 22,888 with an increase of 5.26 per cent was recorded at 317.42 points against previous week's calculation of 301.55, the SPI for the income group Rs22,889-29,517 with an increase of 4.44 per cent was recorded at 340.39 points against previous week's recording of 325.92 points, the SPI for the income group Rs29,518-44,175 with an increase of 1.02 per cent was recorded at 328.38 points against previous week's reading of 319.26 points and SPI for the monthly income group above Rs44,175 registered an increase of 3.03 per cent was recorded at 328.92 points against 319.26 points of the previous week calculation. The combined increase for all expenditure groups recorded at 329.09 points compared to 316.23 points of previous week registering an increase of 4.07 per cent. Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
Weekly SPI inflation up 4.07pc
ISLAMABAD: The Sensitive Price Index-based inflation increased by 4.07 percent for the current week ended July 24, 2025 compared to 0.38 per cent in the previous week. The statistics issued by Pakistan Bureau of Statistics (PBS) showed a major increase in the prices of gas charges for Q1 29.85 per cent, tomatoes 22.93 per cent, electricity charges for Q1 21.46 per cent, eggs 3.96per cent, garlic 1.39 per cent, cigarettes 0.51 per cent, beef 0.46 per cent, rice basmati broken 0.45 per cent, powdered milk 0.29 per cent, energy saver 0.23 per cent and fresh milk by 0.16 per cent. On the other hand, decrease is observed in the prices of chicken7.95 per cent, sugar4.25 per cent, onions 3.05 per cent, bananas 2.81per cent, LPG2.09 per cent, potatoes 1.82 per cent, wheat flour 1.19 per cent, moong 0.43 per cent and pulse gram 0.32 per cent. SPI-based inflation slows down During the week, out of 51 items, prices of 14 items (27.45 per cent) increased, 12 items (23.53 per cent) decreased and 25 items (49.02 per cent) remained stable. While major increase is observed in the prices of ladies sandal 55.62 per cent, gas charges for Q1 29.85 per cent, sugar 21.89 per cent, moong 16.42 per cent, beef 14.08 per cent, vegetable ghee 2.5kg 12.46 per cent vegetable ghee 1kg 12.17 per cent, gur 11.30 per cent, eggs10.70 per cent, firewood 10.52 per cent, cooked daal 9.47 per cent, and printed lawn 7.32 per cent. Major decrease is observed in the prices of onions 49.13 per cent, tomatoes 30.2 per cent, electricity charges for Q1 24.23 per cent, garlic 23.64 per cent, wheat flour 23.21 per cent, maash 20.76 per cent, tea Lipton 17.93per cent, potatoes 15.11 per cent, masoor 8.86 per cent and petrol 1.24per cent. The SPI for consumption groups up to Rs17,732 with an increase of 3.98 per cent recorded at 317.34 points. The SPI for consumption group of Rs17,732 to 22,888 with an increase of 5.26 per cent was recorded at 317.42 points against previous week's calculation of 301.55, the SPI for the income group Rs22,889-29,517 with an increase of 4.44 per cent was recorded at 340.39 points against previous week's recording of 325.92 points, the SPI for the income group Rs29,518-44,175 with an increase of 1.02 per cent was recorded at 328.38 points against previous week's reading of 319.26 points and SPI for the monthly income group above Rs44,175 registered an increase of 3.03 per cent was recorded at 328.92 points against 319.26 points of the previous week calculation. The combined increase for all expenditure groups recorded at 329.09 points compared to 316.23 points of previous week registering an increase of 4.07 per cent. Copyright Business Recorder, 2025
Time of India
5 days ago
- Business
- Time of India
HAM (S): Oppn baffled by high growth rate of Bihar
Patna: Hindustani Awam Morcha (S) has flayed the opposition for attacking the NDA govt in Bihar on the development front. As the opposition alleges financial irregularities pointed out in the Comptroller and Auditor General (CAG) report, HAMS (S) national president and minister Santosh Suman on Friday said they were baffled by the high growth rate of Bihar under the good governance of the NDA govt. "The opposition allegations are baseless as they cannot see Bihar's GSDP increase by more than 10 times in the last two decades," Suman said. According to the CAG report tabled in the legislative assembly on Thursday, the state's GSDP in FY 2023-24 grew at 14.47% over the previous year and the revenue expenditure increased by 3.55% whereas its revenue receipts increased by 11.96% over the previous year. But the CAG report also pointed out that the state govt did not submit utilisation certificates of funds amounting to Rs70,877 crore. "The high pendency of utilisation certificates is fraught with the risk of embezzlement, misappropriation and diversion of funds," the CAG report said. CPI(ML) politburo member Dhirendra Jha said the CAG report has exposed the functioning of the state govt and its so-called development model. "The CAG findings are shocking and bring out a grim picture of institutional corruption, administrative failure and economic mismanagement in the state," he said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like She's 75 and Retiring - Her Handcrafted Jewelry Is 80% OFF Artisan Weekly Read More Undo The report also highlighted delays in the submission of detailed contingent (DC) bills, which are required to account for funds drawn using abstract contingent (AC) bills. As on March 2024, DC bills worth Rs 9,205 crore were pending against Rs22,130 AC bills. "Non-submission of DC bills within the prescribed period breaches financial discipline and enhances the risk of misappropriation of public money," the CAG report said. However, the minor water resources department minister said Bihar registered a growth rate of 14.47% in 2023-24, which was 4.87% more than the national average. "Bihar, which is running at a fast pace on the track of development, has consistently maintained its double digits growth, except for the Corona period," Suman said. He said Bihar's growth rate in 2022-23 was 15.30%. Citing the CAG report, he said all the allegations of the opposition regarding Bihar's backwardness have been proved baseless. Suman said the opposition should now stop misleading the people with their false propaganda and accept the ground reality. "Before 2005, Bihar's GSDP was only Rs82,490 crore, which has now increased to Rs8.54 lakh crore. The more than 10-fold increase in our GSDP in the last two decades has been possible only due to the good governance of the NDA govt and the ban on corruption and loot in the state. This is real development!" he claimed.
Time of India
7 days ago
- Politics
- Time of India
State, Union govts vie to celebrate Rajendra Chola birth anniv
Trichy: Birth anniversary celebrations of Rajendra Chola I have turned out to be grander this year with both the Tamil Nadu govt and the Union govt organising separate events to honour the emperor's legacy. The state govt's celebration of Aadi Thiruvathirai, the festival marking the birth anniversary of the Chola monarch, was jointly launched by ministers Thangam Thennarasu, S S Sivasankar, R Rajendran, and MP Saminathan in the presence of Chidambaram MP Thol Thirumavalavan on Wednesday at Gangaikonda Cholapuram temple at Jayamkondam in Ariyalur district. The temple was built by Rajendra Chola. Tamil development minister M P Saminathan announced during the event that the state govt would install a 35-feet statue of Raja Raja Chola, the father of Rajendra Chola I. The statue would come up in the Rs55 crore Chola museum proposed at Thanjavur. Finance minister Thangam Thennarasu said the state govt has already allocated Rs22 crore to develop the grand museum. The ministers heaped praise on chief minister M K Stalin for sanctioning Rs19.2 crore to redevelop Cholagangam tank built by the king near the temple. Meanwhile, the Union govt organised parallel celebrations from Wednesday which will culminate in the cultural and spiritual events on July 27. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Enhance Online Presence and Get Customers [Try Now] Undo A PIB statement said Prime Minister Narendra Modi, TN governor R N Ravi, Union culture minister Gajendra Singh Shekhawat and minister of state for parliamentary affairs L Murugan would participate in the celebrations on the day. State govt sources said CM M K Stalin was set to participate in the celebrations on Sunday with Modi. However it was cancelled due to his hospitalisation. It would be Thangam Thennarasu who is most likely to represent the state govt at the event. "Kalakshetra Foundation will present a Bharatanatyam performance, followed by Devaram Thirumurai chanting by traditional Othuvars. A booklet on Devaram hymns will be released. The festival will conclude with a musical presentation by maestro Ilaiyaraaja,'' said the statement. Archaeological Survey of India (ASI) will curate special exhibitions on Chola Shaivism and temple architecture, in addition to organizing heritage walks and guided tours, it added.
