ISLAMABAD: Prime Minister Shehbaz Sharif on Friday called for shutting down inefficient and outdated power plants that produced less power with higher fuel consumption, Pakistani state media reported.
Pakistan produces expensive electricity due to a combination of factors, including outdated infrastructure and inadequate power plants, reliance on imported fossil fuels, inefficient energy mix, substantial transmission and distribution losses, and chronic issues like circular debt and regulatory inefficiencies.
Additionally, fluctuations in foreign exchange rates and complex tariff structures contribute to higher electricity prices, while underutilization of domestic resources such as hydropower and coal add to the problem. High power cost is one of the key factors that leads to inflation in the South Asian country.
On Friday, Sharif presided over a meeting in Islamabad to evaluate and discuss future plans for power generation in the country and said only low-cost power projects should be prioritized in the future, the Radio Pakistan broadcaster reported.
“The closure of such [outdated] power plants will not only save valuable foreign exchange spent on fuel imports, but also reduce the cost of electricity for consumers,” he was quoted as saying.
The prime minister called for expediting implementation of ongoing reforms and instructed officials to modernize the power transmission system as per international standards, according to the report.
In October, Sharif said his government was terminating purchase agreements with five independent power producers (IPPs) to rein in electricity tariffs as households and businesses buckled under soaring energy costs.
The need to revisit power deals was part of reforms for a critical staff-level pact in July with the International Monetary Fund (IMF) for a $7-billion bailout. The program was approved in September.
Pakistan has also begun talks to reprofile power sector debt owed to China and structural reforms, but progress has been slow. It has also promised to stop power sector subsidies.
Pakistan PM calls for shutting down outdated power plants with higher fuel consumption
https://arab.news/zvhab
Pakistan PM calls for shutting down outdated power plants with higher fuel consumption
- Pakistan produces expensive electricity due to outdated infrastructure, reliance on imported fuel, and substantial transmission losses
- PM Shehbaz Sharif calls for expediting implementation of ongoing reforms and modernization of the country’s power transmission system
Pakistan rice exports slump 40% as India’s return hits pricing power
- Statistics show non-Basmati shipments have fallen over 50 percent in July-January period
- Government offers 9 percent tax drawback on premium Basmati exports to support sector
ISLAMABAD: Pakistan’s rice exports fell 40.5 percent to $1.31 billion in the first seven months of the fiscal year, official data showed on Tuesday, as India’s return to the global market squeezed Islamabad’s market share and pricing power.
According to the Pakistan Bureau of Statistics (PBS), non-Basmati exports dropped 50.8 percent to $827.8 million, with volumes falling to 2.0 million tons from 3.15 million tons a year ago. Basmati exports declined 6.62 percent to $477.7 million, with volumes easing to 436,484 tons from 487,278 tons.
The Ministry of National Food Security told a parliamentary committee in two separate meetings in December and January that India’s re-entry into the global rice market was a key factor behind the decline, saying increased Indian supplies had made Pakistani rice less competitive.
Officials told lawmakers that India benefits from free trade agreements and provides substantial support to its rice sector, putting additional pressure on Pakistani exporters.
In response, the Ministry of Commerce last month issued a notification under the “Drawback of Local Taxes and Levies for Rice Order, 2026,” allowing a rebate of 9 percent of the free-on-board (FOB) value for Basmati exports priced above $750 per metric ton.
The government said the measure, announced on January 23, aims to ease liquidity pressures on exporters and improve competitiveness.
While PBS data for July-January shows a 40.5 percent decline, figures from the Federal Board of Revenue (FBR) for July-December show an even steeper 47 percent drop to $973 million from $1.82 billion in the same period last year, reflecting a deficit of over $800 million.
Industry representatives say they are now focusing on market diversification to counter the slowdown.
“Currently Basmati is mainly exported to Middle East and EU. Non-Basmati is exported to Philippines, Indonesia, Malaysia and African countries,” Malik Faisal Jahangir, chairman of the Pakistan Rice Exporters Association, told Arab News last week.
“For the new markets for our non-basmati rice exports, we are looking to increase our volumes to China, Philippines, Indonesia and Bangladesh,” he added.
