ISLAMABAD: Pakistan on Tuesday deferred for two months an inquiry into suspected contract violations by independent power producers which may have cost the national exchequer billions of dollars.
Hobbled by decades of energy shortages, successive Pakistani governments have pursued private sector investment in power production, offering lucrative returns backed by sovereign guarantees.
Prime Minister Imran Khan’s government ordered late last month the investigation into the IPPs’ contracts after he was presented with a 278-page report by a government committee which outlined a number of alleged transgressions.
However, a cabinet meeting Khan chaired on Tuesday decided to defer the probe. “In order to provide a chance of meaningful negotiations with the IPPs, constitution of inquiry commission ... may be deferred for two months,” said the meeting minutes seen by Reuters.
Information Minister Shibli Faraz said the decision was taken due to the government’s focus on measures to fight COVID-19. “We will not leave it unattended,” he told a news conference in Islamabad.
Around 40 independent power producers operate in Pakistan. Company representatives have consistently rejected allegations of wrongdoing.
Khan had also ordered the report, which alleges the IPPs made billions of dollars in questionable deals, to be made public. That too will be held up for another two months.
Some of Khan’s powerful cabinet ministers have stakes in the private power sector business.
Previous governments said the incentives, including dollar indexation and guaranteed capacity payments, were necessary to attract investors unwilling to put money into an uncertain Pakistani economy.
Up until 2017, prolonged power outages hit the country’s industrial production.
Pakistan’s energy ministry has lately been holding sessions with the IPPs after some of the report’s contents were leaked to the media, to seek “their contribution in rationalization of tariffs.”
Pakistan is now energy sufficient, but relies heavily on the private power sector.
Pakistan defers probe into private power sector’s alleged wrongdoing
https://arab.news/gkypg
Pakistan defers probe into private power sector’s alleged wrongdoing
- PM Khan ordered late last month investigation into the IPPs’ contracts after he after he was informed about their alleged transgressions
- About 40 independent power producers operate in Pakistan and have consistently rejected allegations of wrongdoing
UAE President to make first official Pakistan visit today with Islamabad set for arrival
- Foreign office says talks will cover investment, energy cooperation and regional stability
- UAE is Pakistan’s third-largest trading partner and a key source of long-term investment
ISLAMABAD: Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, is scheduled to arrive in Pakistan today, Friday, for his first official visit since assuming office, with Islamabad adorned with Pakistani and Emirati flags to mark the occasion.
The visit, taking place at the invitation of Prime Minister Shehbaz Sharif, is aimed at reviewing bilateral ties and exploring ways to deepen cooperation in trade, investment, energy and development, according to Pakistan’s foreign office.
Ahead of the visit, Islamabad has been decked out with large billboards carrying images of the visiting UAE president alongside President Asif Ali Zardari and Prime Minister Sharif.
Rehearsals were also held a day earlier along roads leading to Constitution Avenue, the seat of the government, where groups dressed in traditional attire lined both sides of the route to welcome the visiting delegation.
“During the visit, His Highness will hold a meeting with the Prime Minister of Pakistan, where the two leaders will review the entire spectrum of bilateral relations and exchange views on regional and international issues of mutual interest,” the foreign office said in a statement announcing the UAE president’s planned arrival earlier this week.
“The visit will provide an important opportunity to further strengthen the longstanding brotherly relations between Pakistan and the United Arab Emirates,” it added.
The Islamabad administration has declared a public holiday in the capital, while the traffic police have rolled out an extensive plan to manage vehicular movement during the visit.
According to the state-run Associated Press of Pakistan, heavy traffic entering the city has been barred from 6 a.m. to 12:30 a.m., with several main arteries closed and alternative routes designated.
Pakistan considers the UAE one of its closest regional and economic partners. The Gulf state is Islamabad’s third-largest trading partner after China and the United States and remains a major source of foreign investment.
Over the past two decades, Emirati investment in Pakistan has exceeded $10 billion, according to the UAE’s foreign ministry.
Policymakers in Pakistan also consider the UAE an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.
