Connect with us

Business

Short-Term Tariff Adjustments Boost Industrial Growth, Creating Long-Term Job Opportunities

Short-Term Tariff Adjustments Boost Industrial Growth, Creating Long-Term Job Opportunities

Published

on

Short-Term Tariff Adjustments Boost Industrial Growth, Creating Long-Term Job Opportunities

The government is about to unveil its strategic plans for adjusting electricity tariffs. 

Under guidance of Prime Minister Shehbaz Sharif and Minister for Energy (Power Division) Awais Khan Leghari, these changes aim to foster long-term economic stability and growth by addressing structural issues in the energy sector, despite some immediate challenges. 

With challenges such as circular debt, upcoming IMF deal, electricity theft, sluggish growth, this part of the 2024-25 fiscal plan by the government is key to driving growth and bringing stability back to the economy. 

Key Measures: 

Advertisement

1. Targeted Subsidies for Low-Income Households: The report proposes Rs. 266 billion in subsidies for protected consumers, which make up 58pc of all consumers. These subsidies are intended to ensure that low-income families have access to affordable power, protecting them from energy poverty and enabling them to meet essential needs such as electricity, food, and shelter without undue financial stress. 

2. Progressive Tariff Structures: This tariff structure is designed to be progressive, with higher consumption households paying more. This approach is expected to generate additional funds to subsidize low-income families, encourage energy conservation, and ensure a fair distribution of costs across different income groups. 

3. Supporting Industrial Growth: The government is reducing electricity tariffs for industries across the board to encourage increased production, enhance global export competitiveness, and boost employment. Continued support schemes will continue to support the industrial sector to catalyze the country’s economic growth.

4. Pro Rata Metering Adjustments: To address issues related to delayed meter readings by Distribution Companies (DISCOS), the government plans to introduce pro rata metering adjustments. This initiative ensures fair and accurate meter readings, reflecting actual consumption over the billing period, and protecting consumers from unfair billing practices. 

5. Collaboration with the World Bank for Privatization of DISCOS: The Ministry of Power is actively working with the World Bank to fully privatize DISCOS. This initiative aims to improve operational efficiencies, reduce losses, and counter electricity theft. Privatization is expected to bring in much-needed investment and expertise, enhancing the overall performance, and efficiency, of the power sector.

Advertisement

6. Impact on Consumers: For the 16.8 million protected consumers (58pc of domestic users), the proposed increase in tariffs is less than 2pc. For non-protected consumers, the average increase is expected to be 9pc. Importantly, as the economy improves, electricity tariffs are projected to decrease. By January 2025, a reduction of an average of 3pc is anticipated for all consumers compared to June 2024..

7. Government’s Commitment: Prime Minister Shehbaz Sharif and Minister for Energy (Power Division) Awais Leghari have expressed their commitment to creating a sustainable and equitable energy sector with a clear focus towards a market-oriented structure. These tariff adjustments, while presenting short-term challenges, are designed to lay the foundation for stability in electricity prices, and consequently sustainable economic growth for years to come.

As these plans move towards approval, the strategic approach to balancing immediate economic pressures with long-term development goals is evident.

Advertisement

Business

Various schemes launched to boost agri, livestock sectors: minister

Various schemes launched to boost agri, livestock sectors: minister

Published

on

By

Various schemes launched to boost agri, livestock sectors: minister

 Punjab Minister for Agriculture and Livestock Syed Ashiq Hussain Kirmani said the livestock sector is a top priority of the government, and practical steps are being taken for its development.

He expressed these views during his visit to the sub-campus of the University of Veterinary and Animal Sciences and the Buffalo Research Institute in Pattoki on Saturday.

The provincial minister inspected various departments of the institute, including the calves rearing centre, dairy section, and research laboratories.

The minister on this occasion said that institutions like the University of Veterinary and Animal Sciences are providing such education and training to our youth that they can play their role in the livestock sector in their practical life.

Advertisement

He said under the leadership of Punjab Chief Minister Maryam Nawaz, the government’s focus is on small farmers with land holdings ranging from one to twelve and a half acres, for whom various schemes are being launched in the agriculture and livestock sectors.

He said according to the vision of the CM, the Livestock Department is paying full attention to increasing milk and meat production and implementing body fattening programmes for livestock.

The minister said that for the first time in Punjab, a scheme called the Chief Minister Punjab Livestock Card has been introduced for small farmers, benefiting 80,000 farmers over two years.

Four lakh animals will be prepared for export through feed and fattening. Kirmani said that the Nili-Ravi breed is the pride of Punjab. The Livestock Department is striving to improve the Nili-Ravi breed of buffaloes in Punjab.

Advertisement
Continue Reading

Business

Govt buys per unit electricity for Rs750 from specific IPP: Ejaz

Govt buys per unit electricity for Rs750 from specific IPP: Ejaz

Published

on

By

Govt buys per unit electricity for Rs750 from specific IPP: Ejaz

Former Caretaker Federal Minister for Commerce Gohar Ejaz has said the government has been purchasing electricity from a specific power plant at the rate of Rs750 per unit under IPPs contract deal.

“We have been paying Rs60 per unit due to these corrupt contracts. Out of total IPPs, 52 per cent belongs to the government while 28 per cent is being run by the private people of Pakistan,” Gohar disclosed.

“I have raised my voice against 40 families  and shared the data to save the country from them. It is surprising the government is paying Rs150 billion to a specific power plant which is generating merely less than 15 per cent of its capacity,” he said.

“Most IPPs are running at less than 20 per cent of their capacity while payments of Rs1.95 trillion have been made to these IPPs which have been confirmed.

Advertisement

The former commerce minister reveled the government had been paying Rs370 billion to three IPPs which were generating less than 15 per cent of their capacity.

He says the solution to the problem is to pay to the IPPs ‘no capacity charges.

Read only: Gohar Ejaz urges Leghari to make IPP payment record public

“The IPPs must be paid for what they generate,” he highlighted.

Advertisement
Continue Reading

Business

Nigeria’s Dangote refinery in talks with Libya to secure oil

Nigeria’s Dangote refinery in talks with Libya to secure oil

Published

on

By

Nigeria's Dangote refinery in talks with Libya to secure oil

Nigeria’s Dangote refinery is in talks with Libya to secure crude for the 650,000 barrels per day (bpd) plant and will also seek Angolan oil, a senior executive said, as it seeks to overcome problems with domestic supplies.

The $20 billion refinery, built by Africa’s richest man Aliko Dangote on the outskirts of Lagos is Africa’s largest, and is designed to end Nigeria’s dependence on imported fuels because of insufficient refining capacity.

Since Dangote began operations in January, it has been unable to get adequate crude supplies in Nigeria, which, although Africa’s biggest oil producer, is struggling with theft, pipeline vandalism and low investment.

Dangote has resorted to importing crude from as far as Brazil and the United States.

Advertisement

“We are talking to Libya about importing crude,” Dangote refinery senior executive Devakumar Edwin told Reuters late on Saturday. “We will talk to Angola as well and some other countries in Africa.”

He declined to give detail about the talks, but said international traders and oil companies were among the biggest buyers of Dangote’s gasoil, much of which was being exported.

“The biggest offtakers are the two big traders Trafigura and Vitol and BP and, to some extent, even TotalEnergies. But all of them are saying they are taking it to offshore,” Edwin said.

Traders and shipping data have shown that Dangote is increasing gasoil exports to West Africa, taking market share from European refiners.

Edwin said Dangote’s oil trading arm was operational, with staff in London and Lagos, to help manage supplies and sell products. Reuters first reported the planned trading arm in March.

Nigeria’s upstream regulator has clashed with Dangote, saying the sulphur content in its gasoil was above the required limits of 200 parts per million (ppm).

Advertisement

Aliko Dangote has denied that, saying the sulphur level was higher when production started, but had fallen to 88 ppm and would sink to 10 ppm in early August as output rises.

Continue Reading

Trending

Copyright © GLOBAL TIMES PAKISTAN