Pakistan regulator increases power tariff by 20 percent amid new bailout talks with IMF

Pakistan regulator increases power tariff by 20 percent amid new bailout talks with IMF
A technician from the Karachi Electric Supply Corporation (KESC), Pakistan's largest city's power supply company, fixes new electricity meters at a residential building in Karachi on May 13, 2010. (AFP/File)
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Updated 15 June 2024
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Pakistan regulator increases power tariff by 20 percent amid new bailout talks with IMF

Pakistan regulator increases power tariff by 20 percent amid new bailout talks with IMF
  • The Rs5.72 per unit increase, which will take effect from July 1, will provide Rs485 billion in additional revenue to distribution companies
  • Under last bailout, IMF told Pakistan to prevent further accumulation of circular debt in power sector, arising from subsidies and unpaid bills

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Friday announced an increase of around 20 percent in the uniform power tariff to generate Rs3.8 trillion in funds for 10 power distribution companies (discos) during the fiscal year 2024-25, amid Pakistan’s talks with the International Monetary Fund (IMF) for a new bailout program.
The Rs5.72 per unit increase, which will take effect from July 1 after the government issues a formal notification, will provide Rs485 billion in additional revenue to discos and strengthen the government’s position in securing an IMF bailout in July.
Islamabad is currently locked in talks with the IMF for a longer-term bailout of around $8 billion after the last $3 billion helped Pakistan avert a sovereign default in June last year. Pakistan is expected to formally request for the program in the coming weeks.
NEPRA said the total Power Purchase Price (PPP) of ex-WAPDA distribution companies (XWDISCOs) for FY 2024-25 worked out as Rs3,277 billion, which includes Rs1,161 billion for fuel & variable cost and Rs2,116 billion as capacity charges.
“The capacity charges translate into Rs.6,957/kW/month, based on projected average monthly MDI of 25,348 MW. Thus, the capacity charges works out as around 65 percent of the total projected PPP of XWDISCOs, whereas energy cost is around 35 percent of the total projected PPP,” it said in a circular.
“In terms of average per unit PPP of XWDISCOs on unit purchased basis i.e. before adjustment of allowed T&D losses of XWDISCOs, capacity charges works out as Rs. 17.66/kWh, whereas energy charges are Rs.9.69/kWh, totaling to Rs.27.35IkWh for the FY 2024-25.”
The national average power purchase price works out as Rs.27.00/kWh, according to NEPRA. The generation cost is transferred to the DISCOs as per the prescribed mechanism.
Under the last IMF bailout, Pakistan was told to prevent further accumulation of circular debt in its power sector, arising from subsidies and unpaid bills. For a new program, the South Asian nation will need to implement reforms to reduce costs by improving electricity transmission and distribution, moving captive power into the grid, improving governance, and combating theft.
It will also have to maintain power and gas tariffs at levels that ensure cost recovery, with adjustments made to safeguard the financially vulnerable, through existing progressive tariff structures.
The government has the authority to make adjustments with different rates of increases for various consumer categories without affecting the overall revenue requirement determined by NEPRA.


Punjab CM invites Turkish universities to expand footprint in Pakistan at Antalya Diplomacy Forum

Punjab CM invites Turkish universities to expand footprint in Pakistan at Antalya Diplomacy Forum
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Punjab CM invites Turkish universities to expand footprint in Pakistan at Antalya Diplomacy Forum

Punjab CM invites Turkish universities to expand footprint in Pakistan at Antalya Diplomacy Forum
  • Maryam Nawaz Sharif meets President Erdoğan and First Lady before addressing a session on education
  • She says the provincial administration is committed to education and opportunities for women and children

ISLAMABAD: Chief Minister of Punjab Maryam Nawaz Sharif on Saturday invited leading Turkish universities to expand their footprint in Pakistan’s most populous province while addressing a session focused on education at the Antalya Diplomacy Forum 2025.
The annual forum, now in its fourth edition, is hosted under the patronage of Turkish President Recep Tayyip Erdoğan and aims to foster dialogue and cooperation on pressing global issues. This year’s theme, “Reclaiming Diplomacy in a Fragmented World,” has drawn world leaders, diplomats and civil society actors to discuss solutions to global challenges, including education, conflict and development.
Before her address, Sharif met with Erdoğan and First Lady Emine Erdoğan. The Turkish president warmly welcomed and thanked her for participating in the forum.
“I take this opportunity to invite the top universities of Türkiye to expand their presence in Punjab, to create more centers of eminence, more centers of excellence where our youth can learn, grow and lead,” she said while addressing the gathering.
“Let us ensure that our collaboration and exchange programs become the foundation for a brighter, human-centric future, a future that both Pakistanis and Turkish generations will be proud to inherit,” she added.
The Punjab chief minister emphasized her provincial government’s commitment to transforming education landscape.
She outlined several reform initiatives, including the upgradation of more than 4,000 primary schools into elementary schools to combat generational dropouts, particularly in rural areas where children often leave school after Class 5 due to the absence of nearby middle schools.
“This upgradation is not a token gesture. It is a systemic intervention,” she said, adding that digital learning rooms were also being established in over 6,000 schools across the province to integrate technology with pedagogy.
Sharif also spoke of reviving non-functional schools and turning them into “sanctuaries of learning,” while highlighting a new nutrition program launched in underserved districts to address malnutrition among schoolchildren, especially girls.
“My government’s foremost commitment is to women and children, to education and opportunity, and to dignity and justice,” she said. “And it is in these arenas that I seek to construct a unique model of governance that is both ethical and effective.”
The chief minister further announced the creation of Pakistan’s first Artificial Intelligence University in Lahore and the development of the Nawaz Sharif Internet City, a hub intended to foster innovation and IT-based learning that is named after her father.
“We are recruiting about 30,000 new school teachers entirely on merit,” she informed, noting that the province had also established a dedicated institution for teacher training and curriculum development aligned with 21st-century learning goals.
Sharif positioned herself during the speech not only as a political leader but also as “an ambassador of education,” vowing to ensure that “no child is left behind due to poverty, geography, gender or social restrictions.”


Pakistan and Nigeria discuss enhanced counterterrorism and defense cooperation

Pakistan and Nigeria discuss enhanced counterterrorism and defense cooperation
Updated 12 April 2025
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Pakistan and Nigeria discuss enhanced counterterrorism and defense cooperation

Pakistan and Nigeria discuss enhanced counterterrorism and defense cooperation
  • Both sides reaffirm resolve to boost security ties during General Sahir Shamshad Mirza’s visit
  • Pakistan and Nigeria are members of Commonwealth and Organization of Islamic Cooperation

KARACHI: Pakistan’s Chairman Joint Chiefs of Staff Committee, General Sahir Shamshad Mirza, held high-level meetings with Nigeria’s defense minister and senior military leadership during an official visit to the African nation, with both sides agreeing to strengthen security cooperation, particularly in the field of counterterrorism, the Pakistani military said on Saturday.
Nigeria faces a range of counterterrorism challenges, primarily from Boko Haram and its affiliates, which have waged a years-long insurgency in the country’s northeast, marked by attacks, abductions and mass displacements.
Pakistan, meanwhile, has seen a resurgence in militant violence in its western provinces from groups like Tehreek-e-Taliban Pakistan and the Baloch Liberation Army, with officials in Islamabad blaming them for cross-border attacks from Afghanistan, a charge Kabul denies.
In a statement, Pakistan’s Inter-Services Public Relations (ISPR) said Mirza met with Nigeria’s defense minister as well as the chiefs of the army, navy and air force. The meetings focused on “challenges faced by both countries, especially in the domain of counterterrorism,” as well as broader defense cooperation and regional security.
“During the separately-held meetings, both sides engaged in discussions on challenges faced by both countries especially in the domain of Counter Terrorism (CT) and areas of mutual interest, including security, defense cooperation, and the evolving international / regional landscape,” the ISPR said.
“Both sides reaffirmed the resolve to further enhance defense and military collaboration between both militaries,” it added.
Pakistan and Nigeria have maintained bilateral relations since establishing diplomatic ties in 1961. Both countries are members of the Commonwealth of Nations and the Organization of Islamic Cooperation, sharing common interests in international forums.
Over the years, more than 2,000 Nigerian military personnel have received training in Pakistan, reflecting the scale of the defense collaboration between the two nations.
In recent years, Pakistan has also intensified its diplomatic and economic engagement with African nations under its “Engage Africa” policy, leading to the opening of new diplomatic missions across the continent to increase trade.


Magnitude 5.5 earthquake shakes northern Pakistan with no reports of casualties or damage

Magnitude 5.5 earthquake shakes northern Pakistan with no reports of casualties or damage
Updated 12 April 2025
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Magnitude 5.5 earthquake shakes northern Pakistan with no reports of casualties or damage

Magnitude 5.5 earthquake shakes northern Pakistan with no reports of casualties or damage
  • Pakistan is in a seismically active region, on the boundary of the Indian and Eurasian tectonic plates
  • Pakistan witnessed deadly earthquakes in 2005 and 2013 that caused widespread destruction

ISLAMABAD: A moderate earthquake struck northern Pakistan on Saturday, briefly shaking buildings in the twin cities of Rawalpindi and Islamabad and prompting residents to step outside.
There were no immediate reports of casualties or significant damage.
“An earthquake originated on 12-04-2025 at 12:31 PST [Pakistan Standard Time],” confirmed the Pakistan Meteorological Department (PMD) shortly after the tremors, adding that its magnitude was 5.5 on the Richter scale.
The PMD said the quake’s epicenter was located 60 kilometers northwest of Rawalpindi at a depth of 12 kilometers.
Pakistan sits on the boundary of the Indian and Eurasian tectonic plates and is prone to seismic activity.
The country’s northern and western regions are home to mountain ranges such as the Himalayas, Hindu Kush and Karakoram.
Pakistan also has some of the world’s tallest peaks, including K2, the second-highest mountain on Earth.
Among the most devastating earthquakes in Pakistan’s history was the 2005 Kashmir quake, which measured 7.6 in magnitude and killed more than 86,000 people.
In 2013, a 7.7-magnitude earthquake struck southwestern Balochistan, killing over 800 people and flattening entire villages.


Sindh Wildlife Department reports nearly 15% drop in migratory birds amid drying wetlands

Sindh Wildlife Department reports nearly 15% drop in migratory birds amid drying wetlands
Updated 12 April 2025
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Sindh Wildlife Department reports nearly 15% drop in migratory birds amid drying wetlands

Sindh Wildlife Department reports nearly 15% drop in migratory birds amid drying wetlands
  • The annual waterfowl survey counts 545,258 birds this season, down from 639,122 last year
  • Experts warn that continued habitat loss is likely to cause further decline in bird numbers

KARACHI: The number of migratory birds arriving in the wetlands of Pakistan’s Sindh province has declined by nearly 15% compared to last year, according to the Sindh Wildlife Department on Saturday, raising alarm among conservationists about the impact of water scarcity and climate change on critical habitats.
A recently completed “Annual Waterfowl Survey” for the 2024–25 season recorded 545,258 migratory waterbirds at 30 major wetland sites across the province. The data show a 14.68% drop from the previous year’s count of 639,122 birds, with both surveys covering around 40% of Sindh’s total wetland area.
“The apparent reason for the decline in migratory bird numbers is the decrease in water bodies, as these migratory waterfowl are associated with wetlands and the availability of natural food therein,” Javed Ahmed Mehar, Conservator at the Sindh Wildlife Department, told Arab News.
“We plan to conduct a detailed study with relevant stakeholders to determine the causes of this decline [with greater certainty],” he added.
Wildlife photographer Shahbaz Alam, who has documented Sindh’s lakes and marshlands extensively, also attributed the drop to drying wetlands.
“These birds spend their day in the water, searching for food, and then move toward greener areas,” he said. “With Sindh facing severe water shortages and the drying of wetlands due to climate change, the habitat is simply vanishing.”
Describing the situation as “very alarming,” Alam said he had also noticed the decline over the years.
“Where we once saw thousands [of birds], we now see only hundreds,” he told Arab News.
Pakistan has 19 wetlands designated as Ramsar sites under the Ramsar Convention on Wetlands, an international treaty named after the Iranian city where it was adopted in 1971. The convention aims to conserve globally important wetlands and promote their sustainable use.
Together, these Pakistani sites span 1.34 million hectares. More than half are located in Sindh, including Keenjhar Lake, Haleji Lake, the Indus Delta, Jubho Lagoon and the Rann of Kutch. These wetlands have long served as critical stopovers for migratory birds traveling along the Indus Flyway, an avian route from Siberia and Central Asia.
Among the worst-hit areas this season was the Rann of Kutch Wildlife Sanctuary, which witnessed drought-like conditions, while Nareri Lagoon in Badin hosted the largest number— 155,068 birds.
According to Rasheed Ahmed Khan, who led the survey, the decline is directly related to the decrease in rainfall and the reduction of water bodies and wetlands.
“Due to a severe lack of rainfall last year, almost all dams in Tharparkar remained dry. If reduced rainfall continues due to climate change, there could be a significant decrease in the future,” he warned.
The survey team, comprising experts from the Sindh Wildlife Department and Zoological Survey of Pakistan, recorded over 57 species of migratory waterfowl. These included prominent sightings of Common Teal, Northern Shoveler, Indian Spot-Billed Duck, Cotton Pygmy Goose and Lesser Flamingo.
Endangered species like the Great White Pelican were also documented, highlighting the region’s ecological significance.


Pakistan says exports to Europe grew by 9.4% during FY25

Pakistan says exports to Europe grew by 9.4% during FY25
Updated 12 April 2025
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Pakistan says exports to Europe grew by 9.4% during FY25

Pakistan says exports to Europe grew by 9.4% during FY25
  • Growth driven largely due to GSP Plus status, rising demand for Pakistani textiles and garments, says state media
  • European Union is Pakistan’s second-most important trading partner, accounting for over 14 percent of its total trade

ISLAMABAD: Pakistan’s exports to Europe grew by 9.41 percent during the first eight months of the current fiscal year, state-run media reported on Saturday, attributing the surge to rising demand for the country’s textile, garments and its GSP Plus status. 

The European Union (EU) is Pakistan’s second most important trading partner, accounting for over 14 percent of the country’s total trade and absorbing 28 percent of Pakistan’s total exports as per official data. Pakistani exports to the EU are dominated mostly by textiles and clothes. 

Pakistan avails the Generalized Scheme of Preferences (GSP)+ status, a special trade arrangement offered by the EU to developing economies in return for their commitment to implement 27 international conventions on human rights, environmental protection and governance.

“The demand for Pakistani products in Europe has seen a significant rise, leading to a 9.4 percent increase in exports due to the efforts of the Special Investment Facilitation Council,” state broadcaster Radio Pakistan said in a report. 

It was referring to the SIFC, a hybrid civil-military government body formed in 2023 to fast-track decisions related to international investment in Pakistan’s vital economic sectors. 

The SIFC aims to attract investment from Gulf countries, Central Asian states and regional allies in tourism, agriculture, mining and minerals, livestock and other priority sectors. 

The state media said Pakistan’s exports to Western Europe grew by 11.6 percent and while those to Northern Europe saw a “remarkable” 17.7 percent increase during the first eight months of the current fiscal year. 

“The primary reasons behind this growth are Pakistan’s GSP+ Status and the rising demand for Pakistani textiles and garments,” it added. 

The current GSP framework came to an end in December 2023 but Members of EU Parliament (MEPs) voted in October to extend the current rules on the scheme for another four years for developing countries, including Pakistan. 

Finance Minister Muhammad Aurangzeb has repeatedly stressed the importance of shifting Pakistan’s economy from an import-dependent one toward an export-led one, saying that without it sustainable economic growth is difficult to achieve.

In recent months, Pakistan has vigorously pursued economic and investment deals with Gulf countries such as Saudi Arabia, the United Arab Emirates and bilateral trade cooperation with Central Asian states, Russia and others.