Islamabad: Pakistan’s Energy Minister Awais Ahmad Khan Leghari said this week electricity consumers will be able to buy power from multiple suppliers starting March, as the government moves to implement a new energy market system.
Pakistan’s Cabinet Committee on Energy last October approved the formation of an independent entity to reform Pakistan’s energy market. The new system enables consumers to buy power from multiple suppliers, moving away from the current government-controlled system, where it is the sole buyer of electricity.
Pakistan’s energy sector has long struggled with financial strain due to circular debt, power theft and transmission losses, which have led to blackouts and high electricity costs.
“The National Assembly was informed today (Wednesday) that the government will not purchase electricity after March this year as authorization has been given for the creation of an Independent Electricity Market,” state broadcaster Radio Pakistan reported on Wednesday.
Leghari told the lower house of parliament during the National Assembly session’s Question Hour that the Independent Electricity Market will enable consumers to purchase electricity from multiple suppliers.
Pakistan’s government expects the move will reduce the country’s circular debt and stabilize electricity prices, which along with food prices, pushed inflation to a record 38 percent high in May 2023.
The federal cabinet this week also approved a plan to renegotiate agreements with 14 independent power producers (IPPs), another move aimed at lowering electricity costs and addressing the mounting circular debt.
The main issue between the government and the IPPs were capacity charges, or payments made to IPPs regardless of electricity consumption, which have exacerbated circular debt, now exceeding Rs2.4 trillion ($8.6 billion), as per the energy minister.
Pakistan says revised contracts will save the government Rs1.4 trillion ($5 billion) over their duration, translating into annual savings of Rs137 billion ($493.2 million) for consumers.
The government’s renegotiation efforts were influenced by the International Monetary Fund’s reform recommendations, which seek to reduce tariffs and capacity payments to ease fiscal pressure.
Pakistan to implement new energy market system from March, relinquishing government control
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Pakistan to implement new energy market system from March, relinquishing government control
- New system enables consumers to buy power from multiple suppliers, moving away from government-controlled system
- Pakistan's energy sector has long struggled with financial strain due to circular debt, power theft and transmission losses
Met Office forecasts ‘widespread’ rain, snowfall in parts of Pakistan
- Heavy snowfall may cause road closures, while there is a possibility of landslides and avalanche in hilly areas
- Tourists are advised to remain extra cautious, avoid unnecessary travel during forecast period, Met Office says
ISLAMABAD: The Pakistan Meteorological Department (PMD) has forecast “widespread” rain and snowfall in northern parts of the country in the coming days, saying that a shallow westerly wave was likely to reach the upper regions on Friday.
The weather system is likely to strengthen from Jan. 20 and grip most parts of the country from Jan. 21, bringing rain, thunderstorm and snowfall to several areas, according to a PMD advisory. Gilgit-Baltistan, Azad Kashmir, upper Khyber Pakhtunkhwa, Murree and Galliyat will experience rain/thunderstorm with light to moderate snowfalls Jan. 16 till Jan. 20, with occasional gaps.
Widespread rain/thunderstorm is expected in these areas along with Islamabad, and Punjab’s Sargodha, Gujranwala, Lahore, Sahiwal, Multan, Faisalabad, Dera Ghazi Khan and Bahawalpur divisions, as well as KP’s Peshawar, Hazara, Malakand, Mardan, Kohat, Bannu, and Dera Ismail Khan districts on Jan. 20-23.
“Heavy snowfall is expected [in] Chitral, Dir, Swat, Kalam, Shangla, Kohistan, Battagram, Mansehra, Abbottabad, Murree, Galliyat, Neelum Valley, Bagh, Haveli, Rawalakot from 20th (night) to 23rd January with occasional gaps,” the PMD said.
Similarly, rain/thunderstorm is expected in Balochistan’s Quetta, Ziarat, Chaman, Pishin, Killa Abdullah, Killa Saifullah, Nushki, Harnai, Zhob, Kalat, Barkhan, Sibi, Loralai, Musakhel, Turbat, Gawadar, Jiwani, Lasbella, Kech, Awaran, Chaghi, Panjgur, Khuzdar, Washuk and Kharan districts on Jan. 21-22.
Karachi, Hyderabad, Dadu, Jacobabad, Naushero Feroz, Kashmore, Larkana, Shaheed Benazirbad, Mirpurkhas and Ghotki in Sindh are likely to receive rain with occasional gaps on Jan. 22-23.
“Moderate to heavy snowfall in (Quetta, Ziarat, Chaman, Pishin, Qilla Abdullah, Qilla Saifullah, Noushki, Harnai, Zhob) during the period,” the PMD said.
Heavy snowfall may cause road closures and slippery conditions in Naran, Kaghan, Dir, Swat, Kalam, Chitral, Kohistan, Mansehra, Abbottabad, Shangla, Astore, Hunza, Skardu, Murree, Galliyat, Neelum valley, Bagh, Poonch, Haveli, Quetta, Ziarat, Chaman, Pishin, Killa Abdullah, Killa Saifullah, Nushki, Harnai and Zhob, according to the PMD.
There is a possibility of landslides and avalanche in hilly areas of upper Khyber Pakhtunkhwa, Gilgit-Baltistan and Kashmir during this period.
“Tourists are advised to remain extra cautious and avoid unnecessary traveling during the forecast period,” it said.
“Fog condition is likely to diminish in Punjab, Khyber Pakhtunkhwa and upper Sindh during the wet spell. Day time temperatures are likely to drop significantly during the period.”
