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NO INCREASE IN POWER TARIFF FOR 63% DOMESTIC CONSUMERS: PM
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Tuesday, 25 July, 2023 I 6 Muharram, 1445
P
LAHORE
STAFF REPORT
RIME Minister Muhammad Shehbaz Sharif on Monday assured that no increase in power tariff for 60 percent domestic consumers, consuming upto 200 units monthly. The prime minister further said that those 31 percent consumers of power tariff, consuming upto 300 units months would also be given a partial subsidy. Speaking after witnessing the signing of a framework agreement between State Oil company of Azerbaijan Republic (SOCAR) and Pakistan LNG Limited (PLL) here on Monday, he said: “Due to the toughest conditions from the International Monetary Fund (IMF), the government had to raise the electricity prices but I stressed that the burden should not be passed on to the protected segments of the society.” The framework agreement was signed by Managing Director PLL Masood Nabi and Chief Executive Officer of SOCAR Trading Mariam Almaszade. Minister of State for Petroleum Musadik Malik, Governor Punjab Baleegh Ur
Rehman, diplomats and government officials were also present on the occasion. Under this framework agreement SOCAR Trading has offered LNG supply to Pakistan in the form of one cargo per month, on flexible terms and with the credit lines for 30 days after delivery of the cargo in one year contract which is extendable by another year. Prime Minister Shehbaz Sharif said it was really a great day as “we are stand-
Amid rise in militant attacks, army chief meets Centcom boss RAWALPINDI
STAFF REPORT
Commander of the United States Central Command (Centcom), Gen. Michael Kurilla, met with the army chief, Gen. Syed Asim Munir, on Monday to discuss a variety of issues, including the region’s security situation. The meeting, which comes on the heels of increasing attacks allegedly carried out by Afghanistanbased Tehrik-i-Taliban Pakistan (TTP) militants on the security forces in recent months, was held at the General Headquarters (GHQ) in Rawalpindi, said a statement from the Inter-Services Public Relations (ISPR). It also follows Munir’s recent visit to Washington’s arch-rival Iran. “During the meeting matters of mutual interest, regional security situation, and defense cooperation were discussed,” the statement added. The two reiterated the desire to further enhance bilateral relations between the two armies in “all fields.” Kurilla, for his part, “acknowledged and appreciated Pakistan Army’s successes in the fight against terrorism and Pakistan’s continued efforts for bringing peace and stability in the region.” Pakistan Army, last week, warned the Afghan Taliban against “providing safe havens” to TTP and said the militants’ “safe havens and sophisticated weapons” pose a security risk to the country. Pakistan has witnessed a steady increase in militant attacks in the first six months of the current year, claiming the lives of 389 people, including soldiers, across the South Asian nation. Around 271 attacks occurred during the period. The TTP is a conglomerate of several militant groups in Pakistan that Islamabad says are currently inside Afghanistan. Gen. Munir has claimed that the TTP militants have “freedom of action” across the border in Afghanistan and urged Kabul not to allow its soil to be used against any country.
ing here as brothers from two brotherly countries Pakistan and Azerbaijan. He expressed wishes to the President of Azerbaijan Ilham Aliyev whom he met in Baku few weeks ago and thanked him for finalizing this agreement. “We had extremely productive and very fruitful discussion over there as to how to promote economic relations between the two friendly countries,” he said adding that immediately on his re-
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turn to Pakistan, the Pakistan government extended approval to the Azerbaijan airline to land in Islamabad, Lahore and Karachi. “This is a big step forward to promote tourism and investment and exchange of delegation between the two countries.” The prime minister also appreciated and thanked Finance Minister Ishaq Dar, Dr Musadik Malik, secretary petroleum, Pakistan’s ambassador in Azerbaijan, CEO SOCAR Trading, and MD PLL for their work to conclude the framework agreement. Ambassador of Azerbaijan in Islamabad on the occasion said this framework agreement would help further strengthen bilateral economic relations. He said cooperation between the two countries had remained sustainable since start of the diplomatic ties between the two brotherly countries. He said approval of giving airspace to the Azerbaijan airline would increase the number of visitors and business delegation between the two counties. He informed that a team of horticulture experts from Azerbaijan was arriving here in Pakistan to share their first hand experience in the sector with the Pakistani authorities.
NEPRA, Govt under fire over proposed Rs7.50 per unit power tariff hike g
STAKEHOLDERS, ESPECIALLY THOSE REPRESENTING EXPORT-ORIENTED SECTORS AND INDUSTRIES, RAISED OBJECTIONS OVER MASSIVE TARIFF HIKE PROFIT
AHMAD AHMADANI
The National Electric Power Regulatory Authority (NEPRA) and the government faced severe criticism during a hearing on the proposed increase in base power tariff by up to 7.5 rupees per unit. The stakeholders, especially those representing the export-oriented sectors and industries, raised objections over the massive tariff hike and questioned the government’s implementation of cross subsidies without thoroughly assessing its impact. During the hearing, NEPRA and the Power Division received scathing remarks for allowing the installation of several Independent Power Plants (IPPs), which increased the country’s capacity to 45000 MW without investing in the transmission and distribution network. Intervenors, particularly representatives from the textile sector and other industries, pointed out that despite these plants producing a maximum of 26000 MW, consumers were still paying capacity payments for the remaining idle power plants. The motion filed by the federal government to increase electricity prices by 7.5 rupees per unit prompted the hearing. The Power Division justified the proposed increase, citing rupee depreciation and capacity payments as the main reasons, but NEPRA officials emphasized that the specific increase for each slab is the government’s political and administrative decision. During the hearing, Member NEPRA, Rafiq Shaikh, questioned the legality and rationale behind the government’s subsidies allocation and demanded transparency in determining the subsidy amount for each slab. The Power Division officials clarified that the government would grant a subsidy of 158 billion rupees to electricity consumers, exempting consumers using up to 200 units from any increase. They further explained that 40 percent of consumers in the country living below the poverty line would receive subsidies, covering 90 percent of all consumers. Representative Tahir Basharat Cheema from
APTMA raised concerns about the potential impact of even a one percent tariff increase on exports and highlighted that commercial and billboard operators receive a commercial tariff. He expressed that a switch to alternatives would incur a cost of 300 rupees per unit. Cheema also questioned the power companies’ resorting to load shedding and sought accountability for the burning of 22 thousand meters of electricity during recent rains. Member NEPRA, Rafiq Shaikh, emphasized the need for the Power Division to present an economic case justifying the subsidies for electricity consumers, voicing concerns about its potential impact on the industrial sector. Following the hearing, NEPRA reserved its decision on the proposed power tariff hike. The decision will be forwarded to the federal government for review, and upon approval, a notification will be issued to implement the tariff increase. In response to the proposed tariff hike, Jamaate-Islami Karachi Amir Hafiz Naeem-ur-Rehman rejected the increase and accused NEPRA of following the government’s instructions. He argued that the proposed hike would burden the urban population and regular electricity bill payers, further lamenting that the public is bearing the brunt of the government’s inefficiency. Naeem ur Rehman criticized NEPRA for not taking decisive action against Independent Power Producers (IPPs) despite their agreements being detrimental to the country’s economy and people. He accused NEPRA of acting under the instructions of the cabinet, making the hearing seem futile and merely an attempt to save face. He argued that the subsidy itself represents inefficiency in the government’s management of power plants and distribution companies, leading to hardships for the public. The Chairman of the National Electric Power Regulatory Authority (NEPRA) voiced disappointment at Naeem’s refusal to accept past invitations for collaboration. The discussion revolved around the rising electricity tariffs and K-Electric’s provisional license renewal.
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Cabinet committee approves draft framework agreement with UAE on cargo terminal irfan.farooq@pakistantoday.com.pk
ISLAMABAD
SHAHZAD PARACHA
The Cabinet Committee on Inter-governmental Commercial Transactions (CCoIGCT) has approved G2G agreement between the Governments of UAE & Pakistan on Cooperation for the Development of Bulk and General Cargo Terminal at East Wharf at Karachi Port under Inter-Governmental Commercial Transaction Act, 2022. Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar chaired the meeting of the CCoIGCT. Sources said that the Ministry of Maritime Affairs informed the CCoIGCT that Karachi Port consists of 03 Wharves as East, Wcst and South containing 05 terminals. Three docking terminals outsourced to Terminal Operating Companies (TOC) while remaining two i.e. Oil Terminal and Clean Bulk Cargo Terminal (CBCT) are presently operated by the KPT. The CBCT was handed over to KPT in 2016 after the same was built from a loan from the World Bank. In 2019 KPT proceeded to outsource the CBCT by inviting E01 from TOCs. In the pre-qualification stage eleven TOCs were declared qualified by NESPAK whereas only QTerminal submitted technical proposals. KPT decided to go for international bidding but at the time the consultants finalized the tender documents, the AD Port approached the government of Pakistan and KPT through UAE’s Ambassador expressing its interest in operation of the two terminals on east Wharf. KPT further informed that gross revenue of CBCT is Rs 3100 million pa and Repayment of loan is Rs 3000 million, operating expenses is Rs 675 million. The KPT ends up with a deficit amount of Rs 575 million pa. MoFA has also been tracking the progress of KPT’s outsourcing efforts since 2022 for offering CBCT to the State of Qatar. In May, 2023 SAPM for Foreign Affairs informed that CBCT can be offered to Saudi Arabia (KSA). The KPT also on its own approached the Q-Terminal who indicated interest to the extent of participating in bidding. In the meantime, MoFA forwarded UAE Ambassador’s letter enclosing G2G Agreement between the Government of the United Arab Emirates and Government of the Islamic Republic of Pakistan for the Development of Bulk and General Cargo Terminal at East Wharf Karachi Pon. Framework Agreement Committee, therefore, recommended that the draft Agreement may be placed before the Cabinet Committee on inter-governmental Commercial Transactions for consideration and recommendation for the Federal Cabinet for granting approval in tem. of Rule-16(1)(h) of Rules of Business, 1973. Moreover, CColGCT during its meeting held on 19-72023 had desired that sponsoring the Ministry of the proposal must ensure that the transaction is being carried out with a Government owned entity as required under G2G Agreement. Therefore, MoFA was requested to confirm that AD Port is a UAE government entity. MoMA asked the CCoIGCT to approve the criteria for the purpose of price discovery by the Negotiation Committee to be nominated by the CColGCT. In addition, a Committee may be constituted to negotiate price discovery on criteria indicated as in para-6 and frame a Commercial Agreement to be signed between KPT and AD Port, UAE. The Price Negotiation Committee may submit its recommendations for the approval of Cabinet through CColGCT.
Efforts for Dar’s nomination as caretaker PM suffer major setback CONTINUED ON PAGE 03
ISLAMABAD
MIAN ABRAR
Efforts of the ruling Pakistan Muslim League-Nawaz (PML-N) to get Finance Minister Ishaq Dar appointed as caretaker prime minister have suffered a major setback as neither the Pakistan People’s Party (PPP) nor other stakeholders are ready to accept Dar as caretaker PM. Well informed sources say that successive meetings between PPP’s Asif Zardari and PML-N’s Nawaz Sharif have failed to reach consensus over Dar and the matter may be discussed later in the week when PDM chief Maulana Fazlur Rehman joins the duo. Fazl is about to dash to Dubai where the talks between coalition partners have entered into a critical phase as the PPP has geared up its contacts with the other parties of the coalition government, reflecting that Dar is unacceptable for many of the partners. Meanwhile, PPP’s several leaders contacted media houses on Monday and conveyed that no consensus has been reached on the nominee of PML-N Ishaq Dar as caretaker PM. Separately, PPP’s minister Sherry
Rehman and Faisal Kundi also addressed a presser to claim that there was no consensus on Dar’s nomination as caretaker PM. Minister for Climate Change and Pakistan Peoples Party (PPP) leader Senator Sherry Rehman refuted any consultations or agreement for the caretaker prime minister’s position, terming all such news as “fake”. The statement came a day after reports emerged, suggesting that Finance Minister Ishaq Dar’s name had been finalised for the interim PM’s position. Addressing a press conference in Islamabad alongside PPP leader Faisal Karim Kundi, Sherry said that no decision has been made yet regarding the position “There is a constitutional procedure in place for the appointment of interim PM. Stability in the country can only be achieved through timely elections and a non-partisan interim government,” she added. On the occasion, Kundi dismissed the rumours of reaching an agreement with PML-N over the position of interim PM. He asserted that no official or unofficial meetings in Dubai, or elsewhere, have confirmed the veracity of such news.
He categorically rejected that the name of Ishaq Dar was proposed to the PPP till now. “All parties including the PML-N have the right to shortlist candidates but if [Ishaq Dar’s] name is given to PPP, we will discuss it,” he added. He clarified that no meetings were held in Dubai, they want the assembly to complete its term and elections to be held in 60 days. He further said that his party had reser-
CONTINUED ON PAGE 03
vations over the census as well. Later in the day, Minister for Defence and central leader of PML-N Khawaja Asif also ruled out the possibility of Finance Minister Ishaq Dar becoming a caretaker prime minister (PM). Talking to a private news channel on Monday, Khawaja Asif confirmed there were differences over Dar’s nomination. “I personally wish to see Dar as the care-
taker premier. It come to my knowledge that objections are being raised for considering Dar,” he said. However, the minister did not elabourate whether the objections were raised by the coalition members or the stakeholders. The defence minister admitted that objections will definitely be raised if the caretaker premier is appointed from the ruling party.
Fazl likely to visit to Dubai to meet Nawaz, Zardari to discuss caretaker setup
ISLAMABAD: Jamiat Ulema-e-Islam-Fazl (JUI-F) and Pakistan Democratic Movement (PDM) chief Maulana Fazlur Rehman is likely to visit Dubai to hold meeting with Pakistan Muslim LeagueNawaz (PML-N) Nawaz Sharif and former president Asif Ali Zardari for discussing the caretaker setup in the country. As the date of end of sitting assembly draws nearer, the contacts between Pakistan People’s Party, Pakistan Muslim LeagueNawaz and Jamiat Ulema-e-Islam are gearing up. Sources said that Nawaz Sharif and Asif Ali Zardari have con-
CONTINUED ON PAGE 03
tacted Fazlur Rehman after which he is likely to visit Dubai to meet both the leaders. The three bigwigs will ‘finalise’ the names for the caretaker governments. Earlier, the ruling coalition parties, Pakistan People’s Party (PPP) and Jamiat Ulema-e-Islam Fazl (JUI-F) rejected receiving any suggestions from PML-N regarding Ishaq Dar for caretaker prime minister’s (PM) slot. Maulana Fazlur Rehman-led JUI-F and Bilawal Bhutto Zardari-led PPP rejected such reports regarding their agreement on appointing Ishaq Dar as the caretaker PM. STAFF REPORT