Pakistan’s finance minister highlights power sector reforms, pledges support for K-Electric

Pakistan's Federal Minister for Finance and Revenue Muhammad Aurangzeb speaks during a meeting with the Chairman of the Board of Directors of K-Electric, Mark Skelton in Islamabad, Pakistan on September 10, 2024. (Photo courtesy: Finance ministry)
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Updated 10 September 2024
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Pakistan’s finance minister highlights power sector reforms, pledges support for K-Electric

  • Muhammad Aurangzeb says government wants participation of private firms in the power sector
  • He promises to support K-Electric's plan to transition to renewables for more affordable energy

ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb on Tuesday highlighted the government’s efforts to improve the efficiency of Pakistan’s power sector during a meeting with the Chairman of the Board of Directors of K-Electric, Mark Skelton.

Pakistan’s power sector faces chronic issues, including inefficiencies, high losses and financial instability. The sector is largely composed of power generation companies (Gencos) and distribution companies (Discos), both of which have struggled with outdated infrastructure, circular debt and poor management.

The government has initiated several reforms aimed at addressing these challenges, particularly focusing on enhancing operational efficiency and ensuring more reliable power delivery across the country.

“The Minister recounted the structural reforms being undertaken in the power sector, including the reconstitution of Boards of Directors of Discos by bringing in professionals from the private sector and reducing the number of government nominees to bring in more efficiency in the boards and improve overall service delivery,” said a statement released by the finance division after the meeting.

“He reiterated the government’s resolve to ensure private sector participation in all government-owned Discos and Gencos and mentioned the start of the process of privatizing three Discos in line with the Prime Minister’s vision to enable and facilitate the private sector to lead the economy,” it added.

K-Electric, Pakistan’s largest private utility company, is responsible for generating, transmitting and distributing electricity to Karachi and its surrounding areas.

Its top official briefed the minister about the utility company’s plans to cater to the growing energy demands of Karachi, adding that it wanted to transition to renewables to ensure affordable and sustainable energy for the residents of the port city.

The minister lauded the initiatives taken by K-Electric for further investment and expansion of its power generation and distribution operations, promising full support to make the transition to cheaper electricity possible.


Cross-border clash breaks out between Pakistan and Afghanistan amid rising tensions

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Cross-border clash breaks out between Pakistan and Afghanistan amid rising tensions

  • Border residents say exchange of fire in the Chaman border sector lasted nearly two hours
  • Both governments issue competing statements blaming the other for initiating the violence

ISLAMABAD: Pakistan and Afghanistan witnessed yet another border clash, according to officials in both countries who spoke in the early hours of Saturday, with each side accusing the other of launching “unprovoked” attacks.

Fighting erupted in Pakistan’s southwestern Chaman border sector, with an AFP report saying that residents on the Afghan side of the frontier reported the exchange of fire began at around 10:30 p.m. (1800 GMT) and continued for roughly two hours.

The incident underscored how tensions remain high between the neighbors, who have seen deadly clashes in recent months despite several rounds of negotiations mediated by Qatar and Türkiye that resulted in a tenuous truce in October.

“There has been unprovoked firing by Afghan Taliban elements in the Chaman Sector which is a reckless act that undermines border stability and regional peace,” said a Pakistani security official on condition of anonymity.

“Pakistani troops responded with precision, reinforcing that any violation of our territorial integrity will be met with immediate and decisive action,” he continued.

The official described Pakistan’s response as “proportionate and calibrated” that showed “professionalism even in the face of aggression.”

“The Chaman Sector exchange once again highlights the need for Kabul to rein in undisciplined border elements whose actions are destabilizing Afghanistan’s own international standing,” he added.

Relations between Pakistan and Afghanistan have grown increasingly bitter since the Taliban seized power in Kabul following the withdrawal of international forces in August 2021.

Islamabad accuses the Taliban administration of sheltering anti-Pakistan militant groups such as the Baloch Liberation Army (BLA) and Tehreek-e-Taliban Pakistan (TTP), which have carried out deadly attacks in its western provinces bordering Afghanistan, targeting civilians and security forces.

The Taliban deny the charge, saying Pakistan’s internal security challenges are its own responsibility.

The Pakistani security official said his country remained “committed to peaceful coexistence, but peace cannot be one-sided.”

“Attempts to pressure Pakistan through kinetic adventurism have repeatedly failed and will continue to fail,” he said. “The Chaman response has reaffirmed that message unmistakably.”

He added that Pakistan’s security forces were fully vigilant and that responsibility for any escalation “would solely rest with those who initiated unprovoked fire.”

Mosharraf Zaidi, spokesman for Pakistan’s prime minister, also commented on the clashes in a social media post, saying the Afghan Taliban had “resorted to unprovoked firing along the border.”

“An immediate, befitting and intense response has been given by our armed forces,” he wrote.

https://x.com/mosharrafzaidi/status/1997025600775786654?s=46&t=JVxikSd5wyl9Y96OwifS5A

Afghan authorities, however, blamed Pakistan for the hostilities.

“Unfortunately, tonight, the Pakistani side started attacking Afghanistan in Kandahar, Spin Boldak district, and the forces of the Islamic Emirate were forced to respond,” Taliban spokesman Zabihullah Mujahid said on X.

https://x.com/zabehulah_m33/status/1997018198508818891?s=48&t=x28vcP-XUuQ0CWAu-biScA

Border clashes that began in October have killed dozens of people on both sides.

The latest incident comes amid reports of back-channel discussions between the two governments, although neither has publicly acknowledged such talks.