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Pakistan set to issue first-ever $200m panda bonds in June
Pakistan plans to issue its first-ever panda bonds in June 2025, marking a significant step toward strengthening its financial relationship with China.

The yuan-denominated bonds, to be issued in China’s capital markets, aim to raise $200 million, diversify Pakistan’s foreign exchange exposure, and attract Chinese investors.

 “We just want to make sure that we are also present in the second largest and second deepest capital market in the world,” Finance Minister Muhammad Aurangzeb said this while speaking to Hong Kong-based TVB news channel.

He hoped the new “export-led” model would help buoy his country’s economy, it reported.

The bonds come as Pakistan celebrates its 75th anniversary of diplomatic relations with China.

Panda bonds, typically issued by non-Chinese entities to tap into China’s investor base, are expected to complement Pakistan’s efforts to reduce its reliance on the US dollar while creating new avenues for external funding.

Pakistan has faced severe economic turbulence in recent years. In mid-2023, inflation reached a record 38 percent, and the country teetered on the brink of default.

Since March 2024, the Government of Pakistan has implemented reforms under the IMF’s program that have brought inflation down to 4.1 percent as of December 2024. Despite the progress, Pakistan continues to grapple with the high debt levels.

Aurangzeb expressed the hope that the second phase of China Pakistan Economic Corridor (CPEC 2.0) would play a key role in stabilizing the economy.

CPEC, a flagship program of China’s Belt and Road Initiative, has already seen significant investments in infrastructure and energy projects across Pakistan. CPEC 2.0 is expected to catalyze industrial and technological growth. He hoped it could help woo more Chinese companies and encourage investment in Pakistan.

 “We are very focused on fundamentally changing the DNA of the economy to move towards export-led growth for that market-efficient FDI coming into Pakistan because that is what is going to give us sustainability in terms of our overall ‘balance of payment’ situation in the country,” he said.

While in Hong Kong, for a two-day Asian Financial Forum, Aurangzeb met with Chief Executive John Lee to discuss ways to enhance financial collaboration between the two regions.

The finance minister invited Hong Kong delegations to visit Pakistan and explore trade and investment opportunities.

 “Hong Kong, I think, can be a very good destination for a lot of joint ventures between China and Pakistan to come and do their listings on the stock exchange, either on the primary side or in terms of secondary listings,” Aurangzeb said.

Panda bonds are part of Pakistan’s broader effort to secure financial stability and expand international partnerships.

As the country works towards rebuilding its economy, closer financial ties with China and Hong Kong could open up new opportunities for investment and growth.

Meanwhile, the government is in the process of carving out a plan to auction off cheaper surplus electricity to bulk consumers for 2-3 years. “Under the plan, we will first fix the reference price of electricity and interested parties would be asked to come up with bids for surplus electricity not less than the reference price,” senior officials of the Energy Ministry told The News.

The officials of Central Power Purchase Agency (CPPA) and National Transmission Dispatch Company (NTDC) are also currently working on the implementation mechanism and reference price.

This will also help tackle the monster of capacity payments. The installed capacity of the country has reached 45,888 MWs. The peak summer demand stands at 29,000 MWs, but the system is not able to transmit 29,000 MWs of electricity, rather it is able to transmit 26,000 MWs power. However, the average per month demand stands at 11,000-12,000 MWs. We need to increase the demand of grid electricity in all the months across the country.

The major client can be the industrial sector for getting surplus power at an auctioned price for 2-3 years. The country has cheaper electricity in its southern part which cannot be transmitted to the north Punjab, the load center, mainly because of transmission constraints, but the government is paying capacity payments of even cheaper power which is available but cannot be evacuated.

So the surplus power can be offered to clients at auctioned prices and this is how the government would reduce the burden of capacity payments and surplus electricity would be brought in use.

 “We are also working on the creation of a wholesale private power market by March-April to be followed by the retail private power market. Once the CTBCM is in place and becomes functional, the government would not purchase electricity from the IPPs which signed the revised contracts on take and pay basis. They would be free to join the CTBCM (competitive trading bilateral contract market).”

This could be a paradigm shift in the existing power sector structure. Under this competitive regime, there would be a system of multi-sellers and multi-buyers of electric power. However, the buyers will pay the transmission and distribution use of system charges also for the electricity they will trade bilaterally. Currently, the power sector investments are dominated by the government that also owns power plants and sells electricity to end consumers under a monopoly structure through its Discos having control on the network and supply business.

The consumers have no choice but to purchase electricity from the government-owned Discos. So under the new competitive market implementation, bulk electric power consumers will be able to buy electricity from any private supplier, traders and generation companies at the electric power rates bilaterally agreed by parties with no Nepra determination involved and after including the wheeling charges as determined by Nepra for the use of transmission and distribution.

IMF revises Pakistan’s GDP growth outlook for 2025 to 3%
The International Monetary Fund (IMF) has revised Pakistan's economic outlook, downgrading its projected Gross Domestic Product (GDP) growth for 2025 to 3%, down from 3.2% forecasted just three months ago.

The adjustment comes amid a broader global economic assessment presented in the IMF's "World Economic Outlook Update: Global Growth – Divergent and Uncertain."

The IMF's revised projections also indicate that Pakistan’s GDP growth will remain at 4% in 2026. However, the latest downgrade reflects ongoing economic challenges in the country, although the IMF did not provide specific reasons for the revision.

This latest revision mirrors the forecast made by the Asian Development Bank (ADB) last month, which also adjusted Pakistan’s growth forecast to 3% for the fiscal year 2024-25, up from a previously projected 2.8%.

Both institutions have cited challenges faced by Pakistan's economy but have maintained a cautiously optimistic outlook for the medium-term.

Globally, the IMF forecasts a global growth rate of 3.3% for both 2025 and 2026, slightly below the historical average of 3.7%.

The IMF's chief economist, Pierre-Olivier Gourinchas, highlighted that the global economy continues to face diverging growth patterns, with stronger-than-expected performance in the United States partially offsetting weaker results in other major economies.

Inflationary trends are expected to ease in the coming years, with the IMF projecting global inflation to decline to 4.2% in 2025 and 3.5% in 2026. However, the IMF cautioned that inflation remains stubbornly high in some regions, despite a global trend of disinflation.

The IMF also noted a significant decrease in energy commodity prices, with a forecasted 2.6% decline in 2025, while non-fuel commodity prices are expected to rise by 2.5%, largely due to adverse weather conditions affecting key producers.

The IMF's global outlook includes more optimistic projections for some major economies. In the United States, GDP growth is expected to reach 2.7% in 2025, revised upward by 0.5 percentage points due to stronger domestic demand. However, U.S. growth is forecast to slow to 2.1% in 2026.

In contrast, the euro area is facing a weaker economic trajectory, with growth projected at 1% for 2025, down from an earlier estimate of 1.2%.

This downward revision reflects slower-than-expected momentum, particularly in manufacturing, and ongoing political and policy uncertainties. The IMF anticipates a recovery in 2026, with growth expected to rise to 1.4%.

The United Kingdom is projected to see modest growth, with an estimated 1.6% increase in 2025 and 1.5% in 2026.

Meanwhile, China’s GDP is expected to grow at 4.6% in 2025 and 4.5% in 2026, with the IMF urging China to boost domestic demand to support its economic expansion.

India, on the other hand, continues to show robust growth, with the IMF projecting a solid 6.5% GDP increase in both 2025 and 2026, in line with its potential.

As the IMF’s outlook suggests, the global economy remains in a period of uncertainty, with divergent growth paths across regions.

'Target $100b in exports in five years'
Federal Minister for Industries and Production Rana Tanveer Hussain has stated that the government is committed to economic revival through collaboration with the business community. He highlighted Prime Minister Shehbaz Sharif's decisive measures, which have been instrumental in stabilising the economy.

Speaking at the Lahore Chamber of Commerce and Industries (LCCI) on Saturday, the minister underscored the PM's consistent call for a 'Charter of Economy' to ensure sustainable economic progress. He praised the economic reforms initiated during various tenures of the PML-N government, particularly the economic policy reforms introduced by the Nawaz government in the 1990s, which he noted were adopted by former Indian Prime Minister Manmohan Singh and continue to benefit India today.

Hussain stated that a review of agreements with Independent Power Producers (IPPs) has led to lower electricity costs, with further reductions expected by April to ease production expenses. He added that interest rates have been reduced from 22% to 12% within ten months, though the State Bank of Pakistan (SBP) remains independent, limiting government interference in its policies.

The minister called for investment in research and development, stressing support for industrial and agricultural sectors. He encouraged exporters to focus on value addition and explore emerging markets such as Central Asia and Africa. He also announced plans to reduce land prices in Special Economic Zones (SEZs) and Export Processing Zones (EPZs) and to develop SEZs on Pakistan Steel Mills' land.

Commenting on Federal Board of Revenue's (FBR) policies, Hussain described them as growth barriers due to excessive taxation. He urged the business community to aim for exports of $100 billion over five years, exceeding the government's target of $60 billion. The minister also commended LCCI for its proactive approach in addressing business challenges and congratulated its leadership. LCCI President Mian Abuzar Shad raised concerns over rising energy costs, Maximum Demand Indicator (MDI) charges on inactive industrial units, and the high policy rate, which, though reduced to 13%, remains uncompetitive compared to regional countries. He underscored the need to bring the rate down to single digits to encourage investment.

The LCCI president also highlighted the exorbitant prices of industrial land, which have reached Rs50 million per acre, as a significant barrier to investment and exporter competitiveness in global markets. He stressed the importance of ensuring the availability of raw materials, such as metals, steel, and textiles, and urged cascading tariffs to prevent industrial distortions.

World Bank for improving liaison with Pakistan’s development partners
The World Bank executive directors have emphasised the importance of effective partner coordination among the World Bank Group, the IMF and other key development partners to continue supporting the implementation of critical reforms in Pakistan, including those in the energy sector and domestic revenue mobilisation and to strengthen donor alignment.

They strongly supported the new Country Partnership Framework (CPF) for Pakistan from 2026 to 2035, according to the executive board meeting summary approving the country partnership for Islamabad on Jan 14.

The executive board decided that the bank management would brief the board on implementing the first few CPFs under the new approach in 18 to 24 months.

Pakistan’s CPF is the first demonstration example of adopting the key features of the new World Bank Group country engagement model, which is currently under finalisation. The directors welcomed the selectivity of the CPF and its focus on six core outcomes.

They appreciated the strong one World Bank Group approach, and the proposed reliance on global knowledge, private sector solutions, and the increased focus on the data, monitoring and evaluation agenda to track progress and ensure strong and lasting results.

Pakistan first country to implement digital FDI: PM
Prime Minister Shehbaz Sharif said on Saturday that Pakistan is the first country to implement the Digital Foreign Direct Investment (FDI) Initiative, launched by the World Economic Forum (WEF) and Digital Cooperation Organisation (DCO).

According to a spokesperson, the premier said Pakistan’s first Digital FDI project had been making significant efforts to identify targets and promote digital progress. He elaborated that Pakistan’s Digital FDI project was a framework aimed at implementing digital infrastructure, digitisation and export of digital services.

It would focus on sectors likely to attract foreign investment into the country, he added.

 “It is an important milestone towards creating an investment-friendly environment in the country,” the premier said, adding that the country was heading towards a vibrant digital economy, which was a vital step in achieving sustainable progress and prosperity.

Shehbaz remarked that the initiative reflected the government’s commitment to fostering economic growth.

Pakistan, KSA eyeing Reko Diq deal in ‘next few months’
Pakistan and the Kingdom of Saudi Arabia (KSA) are moving towards finalising the nitty-gritty of the multibillion dollar Reko Diq project in the next few months.In another relevant development, the revised valuation of the project has been accomplished and both sides are at the stage of finalising the nitty-gritty of the project. The KSA will procure 10 percent stakes at the first stage followed by an increase in future.

 “One of the major stumbling blocks in finalising the project was resolved amicably, as Saudi Arabia wanted to keep a bank account outside Pakistan for utilising the foreign exchange amount in case of procurement of any machinery. Now both sides have agreed that the foreign exchange would be brought into Pakistan and both sides have also struck a broader agreement to this effect,” a top official privy to the ongoing negotiations disclosed to The News on Friday. Asked about any timeframe for striking the deal, the official said it could not be ascertained yet but the deal was heading towards final stages and could be struck anytime in near future.

To another query about the revised valuation of project shares, he said the project was in its preparatory stage but the revised exercise resulted in improved valuation of the shares.

The results of the updated valuation have been shared with the other side and negotiations are reaching the conclusion stage, said the official.

Govt announces plan for rightsizing five more ministries
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb announced on Friday that during the fourth wave, five ministries namely Ministry of Communications, Ministry of Railways, Ministry of Poverty Alleviation and Social Safety, Revenue Division and Petroleum Division and their attached departments would be examined for rightsizing as per mandate of the Rightsizing Committee.

He chaired a meeting of the Committee on Rightsizing the Federal Government (wave-IV) here, which was attended by Federal Minister for Communications Abdul Aleem Khan, members of the National Assembly, and federal secretaries of the relevant ministries and divisions.

At the outset, the finance minister appreciated, what he called, a “whole of the government” approach, adopted by the ministries and their in-charge ministers for successfully completing the first three waves of the rightsizing exercise aimed at examining 43 ministries and nearly 400 attached departments of the federal government for the purpose of rightsizing before the end of the financial year. The committee was told that in the spirit of rightsizing, the Ministry of Communications had already abolished all dyeing posts.

Amended tax laws to tighten noose on non-filers
National Assembly Standing Committee on Finance will take up money bill, “Tax Laws (Amendment) Bill, 2024,” on Tuesday (tomorrow) and government will soon prohibit non-filers from purchasing, booking, registration of vehicles over 800cc, acquiring property beyond a specified limit, and making stock purchases beyond a certain threshold.

Highly placed government officials told Business Recorder late Sunday night that the government will not immediately abolish higher rates of withholding taxes on non-filers after passage of the “Tax Laws (Amendment) Bill, 2024”. This would be done in a phase-wise manner because there is no justification of higher WHT rates after ban on transactions of non-filers.

But this withdrawal of withholding tax rates on non-filers would not be done in a one go. It would be done gradually and systematically after enforcement of the “Tax Laws (Amendment) Bill, 2024”. Changes in withholding tax regime would be done in the coming budget (2025-26), officials confirmed.

‘Ineligible persons’: stock brokers urge Aurangzeb for consultation on Tax Law (Amendment) Act

It is not clear how the FBR will overcome revenue shortfall after withdrawal of higher rates of WHTs, as withholding taxes constitute nearly 70 percent of overall direct taxes collection, tax experts questioned.

According to “Tax Laws (Amendment) Bill, 2024”, non-filers will be prohibited from purchasing, booking, registration of vehicles over 800cc, acquiring property beyond a specified limit, and making stock purchases beyond a certain threshold.

Additionally, non-filers will not be able to open bank accounts, and there will be restrictions on the number of banking transactions they can conduct. However, non-filers will still be allowed to purchase motorcycles, rickshaws, and tractors.

The purpose of the bill also is to impose restriction on economic transaction by certain persons such as “any person, authorised to sell securities including debt securities or units of mutual funds including a person authored to open and maintain account or clear such transactions, shall not sell, open an account or clear sale of securities, mutual funds, to an ineligible person being an individual or an association of persons.”

The proposed legislation gives powers to direct bank companies, scheduled banks and other financial institutions, through an order in writing, to bar operation of the bank account of any person who fails to get registered.

The government will have the authority to seize the property of non-registered individuals involved in businesses. The Federal Board of Revenue (FBR) will release a list of individuals, and their accounts will be frozen.

The restrictions outlined in the bill will come into effect after the federal government issues a notification. Bank accounts will be frozen, and property transfers will be blocked for individuals who do not register them for sales tax. Accounts will; however, be unfrozen within two days after sales tax registration.

The Chief Commissioner Inland Revenue have the powers to seal the business premises, seize moveable property or appoint a receiver for the management of the taxable activity of a person.

Under the proposed legislation, individuals will be able to appeal to the Chief Commissioner to unfreeze accounts. For the purposes of this bill, parents and children of filers, including children up to 25 years old and spouses, will be considered as filers.

Privatisation of Discos: PM directs a two-pronged plan
Prime Minister Shehbaz Sharif has directed the Power Division to simultaneously pursue two options— Provincialisation and privatisation of Power Distribution Companies (Discos)— to ensure that the transactions are completed as committed to development partners, well-informed sources told Business Recorder.

At a recent meeting on power tariff reduction and the Provincialisation of Discos, the Prime Minister instructed the Power Division to thoroughly explore the option of transferring the ownership and control of Discos from the federal government to provincial governments to be undertaken in consultation with the provinces, with a roadmap and timeline prepared for the Prime Minister’s review and approval.

It was also decided that the Power Division would work in parallel on privatisation of the Discos identified for the first phase— namely IESCO, FESCO, and GEPCO.

The Power Division has been tasked with adhering to the agreed schedule, completing all necessary actions (conditions precedents) before January 31, 2025.

The Privatisation Commission (PC) has requested an update from the Power Division regarding the implementation status of these Conditions Precedent (CPs), including the recognition of various off-balance-sheet liabilities in accordance with applicable financial and corporate reporting requirements.

In a recent communication, the Privatisation Commission referenced a decision made by the Cabinet Committee on Privatisation (CCoP) dated August 2, 2024, which was ratified by the federal cabinet on August 8, 2024. The decision outlines a phased privatization of Discos, either through equity sales or concession contracts.

The Privatisation Commission has noted that the Power Division, in consultation with relevant stakeholders, is actively working to implement the necessary prior actions and Conditions Precedent (CPs) to facilitate the privatisation process.

Currently, the Privatisation Commission is finalising the selection of a Financial Advisor for the first phase of the Discos’ privatisation.

Sources have confirmed that the Privatisation Commission has requested the Power Division to provide updates on the following identified CPs: (i) notify licence eligibility criteria rules; (ii) notify licence eligibility regulations; (iii) notify separate performance standards for distribution and supply (from existing standards) ;(iv) notify power acquisition/ power procurement regulations applicable to suppliers;(v) modify and notify tariff rules to address uniform tariff; (vi) modify current tariff guidelines to accommodate distribution licencee and supplier of last resort; (vii) clarify subsidies for Nepra consideration and in notifying tariffs; (viii) notify guidelines on how Discos can request and recover subsidies; (ix) clean up Discos’ balance sheets; (x) complete the process for issuance of shares in Discos; (xi) develop future mechanism for timely payments against government dues (TDS, FATA/ AJK, etc.); (xii) as per requirement of National Electricity Policy (NEP), efficient tariff structures for Discos may be awarded and Discos target may be revisited as stated in NEP; (xiii) as per requirement of NEP, the strategic road maps entailing commercial performance milestones may be developed for each Disco; (xiv) as per NEP, the anti-theft initiatives and recovery systems may be institutionalized in each Disco with support of law enforcement agencies and provincial governments; (xv) there are various off-balance sheet liabilities of Discos which need to be recognised as per applicable financial and corporate reporting legal requirements; (xvi) define eligibility criteria for customers who can choose their supplier; (xvii) licence regime of Discos is due to be changed after expiry of their existing validity till 2022 safeguarding the wire and retail business of Discos; (xviii) CTBCM is due to be effective soon impacting the exclusivity of Discos in their existing service jurisdictions; and (xix) a confirmed timeline may be provided for full implementation of CTBCM.

Industrial consumers: Dar for providing power tariff relief
Deputy Prime Minister/Foreign Minister Senator Ishaq Dar has directed the relevant departments to initiate process for providing relief to the industrial consumers of electricity.

The deputy prime minister has chaired the second meeting on electricity tariff for industry.

ECC approves ‘winter package’: Eligible consumers to pay Rs26.07/kWh tariff

Meeting was attended by the ministers of Power, EAD, SAPM on Power, Minister of State for Finance and IT, secretaries Finance, Power, and IT, chairman FBR and Nepra. The meeting reviewed the proposal presented by ministries of Finance, IT and Power.

Dec FCA: CPPA-G seeks negative adjustment of Rs1.03/unit
The Central Power Purchasing Agency–Guaranteed (CPPA-G) has sought negative adjustment of Rs 1.0353 per unit in FCA for December to refund Rs 8 billion for consumers’ sans lifeline consumers under monthly FCA mechanism.

Nepra is scheduled to hold a public hearing on January 30, 2025 to seek further explanation from CPPA-G and give opportunity to consumers’ representatives to express their views on FCA adjustment data.

According to data submitted to Nepra, in December 2024 hydel generation was recorded at 1,778 GWh - 22.80 per cent of percent total generation.

Oct FCA: CPPA-G hints at refunding Rs2.6bn to consumer

Power generation from local coal-fired power plants was 784 GWh in December 2024 which was 10.06 per cent of total generation at a price of Rs 17.6664 per unit whereas 124 GWh was generated from imported coal at Rs 19.1529 per unit (percent). Generation from HSD was zero while just 3 Gwh was generated on RFO at Rs 30.3947 per unit.

Electricity generation from gas-based power plants was 960 GWh (12.31 percent) at Rs 13.4084 per unit. Generation from RLNG was 1,615 GWh (20.70 percent of total generation) at Rs 22.7323 per unit.

Electricity generation from nuclear sources was 2,065 GWh at Rs 1.6980 per unit (26.48 percent of total generation), and electricity imported from Iran was 33 GWh at Rs28.0589 per unit. Power generation from baggasse recorded at 101 GWh at a price calculated at Rs 5.9822 per unit.

Monopoly of Sui companies to purchase, sell gas ends
The Sui gas companies monopoly in the purchase and sale of gas has ended and the gas sector has been formally opened, as the Petroleum Division has notified the implementation framework for the sale of gas to third party (private sector) endorsed by the Ecnec with a cap of 100mmcfd gas to be sold to the private sector companies for every year and the cap will be reviewed annually under the much-touted Exploration and Production (E&P) Amended policy 2012 paving the way for $5 billion investment by E&P companies in the oil and gas sector. The Council of Common Interests (CCI) on January 26, 2024, approved amended Exploration and Production Policy 2012 with the stipulation that E&P companies shall had the right to sale up to 35% of their share of pipeline specification gas to the third party having Ogra license, through competitive process, without approval of the government or any of its entity, provided that the price(s) from the third parties would not be less than the wellhead gas prices under Petroleum Policy 2012 for the respective zones.

The notified decision will also be applied to all existing licenses and leases granted under Petroleum (E&P) Rules 1998, 2001, 2009 and, 2013 for the gas discoveries which are not yet allocated and will be allocated after the date of notification pursuant to CCI approval.

The CCI further decided that the province in which a wellhead of natural gas is situated should be given precedence in terms of Article 158 of the Constitution in its letter and spirit. The notification has enabled the E&P companies with immediate effect to sell gas to the private sector companies at auctioned prices which will help overcome their increasing liquidity crisis that has emerged to a new high of Rs1500 billion because of nonpayment by the Sui gas companies.

More importantly, the circular debt would also reduce with timely and advance payments to the E&P companies. The private sector companies would purchase the gas at the auctioned price and pay to E&P companies on time and this is how the liquidity crisis E&P companies facing for a long time would improve. The E&P companies’ entrepreneurs in their meeting with Prime Minister Shehbaz Sharif some months back pledged to invest $5 billion in the oil and gas sector provided the amended E&P policy 2012 approved by CCI on January 29, 2024 is implemented. Now the policy is effective from January 9, 2025 and the gas purchase and sale is opened to the private sector. However, the government may review the framework after every three (03) years in the light of technological advancements or changes in circumstances. The existing users may also avail themselves of the benefit of any review. However, no change shall be made which is detrimental to their existing economic rights.

As per the notification available with The News, the framework for the sale of gas to a third party endorsed by the Executive Committee of National Economic Council (ECNEC), subject to the condition that there will be a cap of 100 mmcfd gas to be sold to third party private sector for every year and this cap will be reviewed annually.

There shall be a proper Gas Sale; Purchase Agreement (GSPA) between 3rd party as a Buyer and E&P companies as seller. GSPA must cover regulatory, commercial, technical aspects and shall be in line with the spirit of this framework and CCI decision, clearly indicating expected volume, percentage, quality specs, and commercial terms. ii. To protect GoP and Provincial interests (royalty, windfall levy, production bonus etc.) GSPA shall be shared with the Petroleum Division. In case of any deviations, the Petroleum Division shall share its observations within fifteen (15) days of receipt of GSPA. The government’s notified decision has virtually liberalized the upstream oil and gas sector by enhancing the right of E&P companies to sell gas to 3rd party buyer from 10% to up to 35%. The private sector companies will ensure timely payments to the E&P companies that will help ensure healthier cash flows and increased revenues which in turn shall facilitate expansion in E&P activities. This will also generate additional revenue for the government in the form of royalty, income tax and windfall levy of gas. The gas producer shall be bound to dispose of their share of gas through a competitive bidding process. To ensure transparency and level playing field, invitation to bid (international competitive bid) for third party sale shall be widely published and also communicated to the Ogra.

Under the proposed 3 party(s) sale regime, 3rd party (a) shall have flexibility to use SUI network or lay own pipeline or use virtual pipelines for transportation of its share of gas while fully complying with applicable regulatory regime.

APTMA urges govt to resolve RCET claims of LIEDA
All Pakistan Textile Mills Association (Aptma) has expressed concern at non resolution of pending Regionally Competitive Energy Tariffs (RCET) claims of Lasbela Industrial Estate Development Authority (LIEDA) despite passage of five years.

In a letter to Secretary Power Division, Secretary General Aptma Shahid Sattar referred to Aptma’s earlier correspondence of November 11, 2024 and the letter from Nepra of November 6, 2024, regarding non-provision of ZRI relief to LIEDA based textile/ zero-rated consumers (K Electric).

In January 2019, the government of Pakistan notified Regionally Competitive Energy Tariffs for all export-oriented industries across Pakistan through SRO on January 1, 2019, and the SRO was withdrawn in March 2023.

During the period ranging from January 2019 through March 2023, eligible consumers across Pakistan availed RCET with the exception of consumers at LIEDA, Hub, Balochistan, and some other eligible consumers located within industrial estates. Subsequently; however, all consumers other than those located in LIEDA were extended the facility by various Discos in whose territorial jurisdiction the industrial estates were located. According to Aptma, the main reason previously given for non-provision of RCET to LIEDA consumers was that since LIEDA is not part of the Discos, the power consumption of such consumers cannot be verified.

However, during proceedings of the current complaint, K-Electric conceded the eligibility of complainants is verified through the metering and billing done by LIEDA, as well as, AMR meters installed which further verify the billing accuracy, and the claims have been prepared on the basis of data recorded and verified as correct by AMR meters, apart from the double verification in the Sales Tax returns. The same has also been vetted and verified by Nepra as per the referenced correspondence.

Moreover, in similar circumstances, the consumers within Sundar Industrial Estate in the territory of LESCO were also initially denied the same benefit and the issue was resolved by the Lahore High Court whereby Nepra was given the task to resolve the issue.

In the case of Sundar Industrial Estate, Nepra issued clear instructions to LESCO for lowering the billing as per the notification for export-oriented companies approved by ECC and Cabinet, and all consumers in the Sundar Industrial Estate were extended this benefit.

However, LIEDA consumers are being deprived of their legitimate dues through no fault of their own. This issue has been pending for a very long time. Despite Aptma’s persistent efforts in raising this matter with the Power Division, numerous meetings and extensive correspondence over several months did not yield any resolution, following which the matter was referred to NEPRA for redressal.

In light of the correspondence from Nepra, Aptma has requested that the Power Division should instruct K-Electric to adjust the pending amount in the consumers’ power bills billed to LIEDA.

Refineries ask PM to clear hiccups in upgrade
Five refineries, one oil pipeline, and 22 oil marketing companies (OMCs), under the platform of Oil Companies’ Advisory Council (OCAS), have sought intervention of Prime Minister Shehbaz Sharif for removal of hurdles in $6 billion upgrade projects of refineries.

The OCAS sought resolution of the issue of sales tax exemption on petroleum products, a budgetary measure imposed in the finance bill for FY25 that virtually halted initiation of the projects. In the letter, dispatched to the prime minister on January 15, 2025, Pak-Arab Refinery Company (PARCO), Attock Refinery Limited (ARL), National Refinery Limited (NRL), Pakistan Refinery Limited (PRL) and Cnergyico PK Limited (CPL) mentioned that the Finance Act 2024-25 changed the sales tax status of petroleum products from zero-rated to exempt supplies, which led to disallowance of input sales tax claims, causing a substantial increase in operational and capital costs.

“The change in sales tax law is severely impacting the financial viability of our planned upgrade projects, infrastructure development, and day-to-day operations. The continuation of this exemption will result in significant erosion in profitability and severe financial strain on the Industry, jeopardising the progress and sustainability of crucial capital-intensive projects essential for uninterrupted supply of petroleum products nationwide, thus nullifying the objectives of the Brownfield Refining Upgradation Policy, which was approved by the government under your dynamic leadership in August 2023,” said the letter.

Despite continuous follow-ups over the past seven months and active coordination with the Ministry of Energy-Petroleum Division (MEPD), Oil and Gas Regulatory Authority (OGRA), Federal Board of Revenue (FBR), Ministry of Finance (MOF), and the Special Investment Facilitation Council (SIFC), the issue remains unresolved. OCAC Chairman Adil Khattak, who is also Managing Director of Attock Refinery Limited, told

The News consultation on refineries upgradation policy was initiated in December, 2019; the first draft was finalised in March 2021 and presented to Cabinet Committee on Energy (CCOE) in August, 2021. It took another two years till its approval by the PDM government in August 2023. After intense and prolonged consultation between the government, refineries, independent financial and legal advisory firms, the Policy for Upgradation of Brownfield Refineries was amended in February, 2024. The policy, if implemented, will bring in US$5-6 billion investment to enable the oil refineries to undertake major upgradation projects to not only comply with Euro-V specifications but also increase production of deficit products of petrol and diesel by 100pc and 50pc, respectively, and also reduce production of furnace oil by 80pc, which because of drastically reduced demand in recent years often results in storage constraints forcing the refineries to reduce capacity utilisation. He said the latest hurdle was exemption of petroleum products from sales tax in the Finance Act 2024, which deprived the refineries from claiming most of the sales tax, paid at the input stage making not only their upgradation projects unviable but also their current operations unsustainable. Numerous meetings have been held at the Petroleum Division, OGRA and FBR over the past six months, but the issue remains unresolved.

Even directives and deadlines given by the PM office and SIFC went unheeded, he lamented. The oil marketing companies in the same OCAC letter also sought the attention of the premier for revision of OMCs margin, saying that the margin revision was due in September 2024, nevertheless, it has not been finalised yet. In June 2024, the OCAC had recommended the increase based on critical cost considerations, including financing costs of maintaining a 20-day stock cover, turnover tax, handling losses, demurrage costs, financing cost of unadjusted Sales Tax and operating expenses incurred by OMCs. The letter stressed immediate revision of the margin, which is essential to prevent further financial losses.

Nuclear power leads Pak grid at half-cent cost
Nuclear power again emerged as Pakistan’s leading source of electricity in December 2024, contributing over 26 percent to the national grid at a remarkably low cost of just over half a US cent per unit.

This marks a continued rise in the share of nuclear energy in Pakistan’s power mix, underscoring the country’s shift towards cleaner, more cost-effective sources of energy.

In December 2024, nuclear energy provided 2,065 gigawatt-hours (GWh), or 26.48 percent of total electricity generation. This was followed by hydropower at 22.8 percent and RLNG-based power at 20.7 percent. Despite higher costs for fossil fuel sources, such as natural gas and local coal, nuclear remains a cornerstone of Pakistan’s energy strategy due to its lower cost and environmental benefits. In January 2024 too, nuclear generation remained the top source, contributing 20.78 percent (1,728 GWh) to the grid. This milestone was first achieved in December 2022, when nuclear power contributed more than 27 percent (2,284.8 GWh) to the country’s energy mix. The nuclear power was 26.48pc of energy mix outpacing hydropower and RLNG.

 “Nuclear energy is central to our plan for a sustainable energy future,” said an energy official. “It offers a viable alternative to expensive and polluting fossil fuels, which have drained billions from our economy.”

If Nepra approves the refund, it could provide some financial relief to electricity consumers in February. However, the adjustment would not apply to lifeline consumers, electric vehicle charging stations, or customers of K-Electric.

Nepra has scheduled a public hearing for January 30, 2025, to review the application and gather feedback from stakeholders. Interested parties are invited to submit written or oral objections during the proceedings, as part of the regulatory process.

REER hits 8-month high in December
Pakistan’s real effective exchange rate (REER) rose to the highest level in eight months in December, data from the State Bank of Pakistan showed on Friday.

REER shows the competitiveness of the local currency against trading partners. It appreciated to 103.7 in December, the highest since April 2024. It stood at 103.2 in the previous month. So far this year, REER has increased by 3.63 per cent. The rupee recovered slightly from the losses it experienced in the previous session, closing stronger on Friday at 278.71 per dollar, compared with 278.86 in the prior session.

In the open market, however, the rupee lost some ground, finishing at 280.99 to the dollar, down from 280.94 in the previous session. According to reports, exchange companies sold $2 billion to banks and another $2 billion in the open market during the first half of fiscal year 2025. Pakistan is on track to reach $35 billion in remittances, representing a 33 per cent increase from last year. Improved inflows and efforts to crack down on illegal currency trading have been attributed to a stable exchange rate. Additionally, exchange companies are seeking equal incentives to those offered to banks.

No new PSDP uplift scheme next year
The Senate Standing Committee on Planning has proposed that no new development project be included in the Public Sector Development Program (PSDP) for the next fiscal year.

Chairing a meeting of the Senate Standing Committee on Planning, Senator Quratulain Marri was apprised that out of 170 new projects in the current fiscal year, only 25 projects were given NoCs. Every year, the carryover of PSDP projects is increasing.

Quratulain Marri said that a ban should be imposed on new PSDP projects. She said that the planning minister should be present in the next meeting to give a briefing on "Uraan Pakistan".

Officials from the Government of Punjab said that the Punjab government has requested the Planning Commission for funds for road infrastructure projects and has demanded Rs50 billion from the federal government under the PSDP.

Officials said that approval for expenditure has been given during the third quarter of the current fiscal year. According to the Ministry of Finance, details of the funds allocated for the third quarter have not yet been received.

5G service launch schedule presented in parliament
The schedule for the launch of 5G services in the country has been presented in parliament, according to the document of the Ministry of IT and Telecom.

The launch of 5G network by any operator will be in June this year. The recommendations of the consultant to the Spectrum Advisory Committee will be submitted in February next month.

In March, the Spectrum Advisory Committee will finalise policy reforms including spectrum pricing, trading conditions and taxation, in April, the policy directive will be approved by the federal government. In May, 3500, 2600, 2300, 700 MHz spectrum will be auctioned and then the 5G network will be launched by telecom operators in June.

The document states that the Ministry of IT and Telecom is on the path of strategic telecommunication transformation by launching 5G services to ensure uninterrupted internet services across Pakistan.

Telenor, Orion Towers: CCP to announce decision on PTCL’s acquisition soon
“The Competition Commission of Pakistan (CCP) is all set to announce the decision regarding Pakistan Telecommunication Company Limited’s acquisition of Telenor Pakistan Pvt Ltd and Orion Towers Pvt Ltd soon, keeping in mind what remedies may be linked to mitigate the concern of lessening competition and abuse of dominance or the other way around”.

This was revealed by Salman Amin, Member (Office of Fair Trade, Cartels & Office of International Affairs), Competition Commission of Pakistan (CCP), while speaking at Aaj TV’s programme “Paisa bolta hay with Anjum Ibrahim”.

Amin also admitted that some information sought from the PTCL, is still awaited.

Telenor, Orion Towers: CCP completes formalities of PTCL’s acquisition

The CCP has completed all cordial formalities of Phase-II review of PTCL’s acquisition of 100 percent shareholding in Telenor Pakistan Pvt Ltd and Orion Towers Pvt Ltd and the decision is expected to be announced anytime soon.

The CCP as per its mandate is to ensure promote fair competition in all sphere of economy, said Member CCP, adding that whenever there is merger and acquisition case, the Commission is look into the matter to ensure that competition was not affected.

Talking about PTCL’s acquisition of Telenor, Amin said that it is one of the big and unique case particularly in this sector and comparing it with Jazz and Warid merger may not be right as it is different in many ways from that.  “As per our law if there is no risk of misuse of dominance, we clear merger cases in Phase-1 with all transactions”, said Member CCP, adding that but when the Commission observe that there are certain elements and risk of abusing dominant position or lessening of competition, then such cases are taken to Phase-II transaction.

Phase-II review is very deep dive and needs to look it from different angles where stakeholders including regulators, competitors as well as down stream and up stream players in the relevant market are being involved and conduct proper hearing.

Since it is quite huge transaction with a value of around $500 million itself and if take its economic impact in long term may get certain billions of dollars impact over the economy, said Amin, adding all due care was taken in this case, by engaging all stakeholders and conducting hearings.

He further said that there were issues as it was significant market player (SMP) as per Pakistan Telecom Act so the Commission had to look into sectors laws as well, and hence they are now in final stages, expecting the decision would be issued very soon.

 “We also look at risk of lessening of competition in merger cases. After this the CCP also look at in such cases whether dominant position is something bad or abuse is bad. We have to differentiate in these things and we also see their licenses whether these are not abusive”, said Amin, adding that after this when they come to the CCP for merger acquisition. We are going for this decision and we will see what will be impact keeping in mind the concerns and what remedies are being linked to mitigate or the other way around, said Amin.

Replying to a question Amin said that during the process and hearing CCP as well as other stakeholders and competitors raised certain questions and sought information. The PTCL has largely provided the information and the remaining would be received.

He said dominant position is not an issue, abuse is an issue and that is why the CCP was moving very carefully. We cannot take decision in isolation and also take into consideration developments happening in the sector, he added.

Talking about PIA privatisation Amin said that lack of proper due diligence on part of the seller (government) was not carried which resulted into a failure. Due diligence on part of seller is corporate affairs, legal affairs, HR, loaning position, and contingencies, after which transaction structure is flout in the market. In PIA case several things were done in haste. He recommended for proper due diligence, marketing stratgey to make PIA privitisation a success this time around.

Al-Qadir Trust case: PTI all set to challenge verdict
Pakistan Tehreek-e-Insaf (PTI) is all set to challenge the most controversial and unjust decision of the Al-Qadir Trust case, which wrongly convicted the party founder Imran Khan and his wife Bushra Bibi, in the high court on Tuesday.

PTI Central Information Secretary Sheikh Waqas Akram has categorically stated that the party would file an appeal at the earliest with the high court, aiming to quash the contentious verdict and correct the egregious miscarriage of justice.

He expressed confidence that the names of Imran Khan and Bushra Bibi would be cleared in the first hearing because the decision was a blatant travesty of justice, driven by political motivations and fabricated charges.

£190mn Al-Qadir Trust case: Imran sentenced to 14 years in prison

Waqas remained hopeful that the court would order the immediate release of Khan and Bushra from their unlawful imprisonment, as the decision was a grave injustice and a mockery of Pakistan’s justice system.

Moreover, PTI CIS emphasized that the growing frustration within the power thieves’ ranks was apparent from the relentless press conferences held by the Sharifs’ courtiers, as they were cognizant of the fact that the case lacked merit and would surely be overturned in a higher court upon appeal.

Waqas hit back at the political dwarfs for accusing PTI of using the institution as a religious card, emphasizing that Al-Qadir University was solely established to teach and promote the life of the holy Prophet Muhammad (PBUH) and Islamic education, making the accusation utterly baseless.

He said that the corrupt oligarchy at the helm of the affairs changed laws and brokered secretive deals to evade justice and escape accountability for massive corruption scandals. In stark contrast, PTI emphasized that Imran Khan, having committed no wrongdoing, steadfastly refused to compromise his principles and decided to fight his over 200 concocted and bogus cases in the courts. Waqas vowed that PTI founder would seek to clear his name through the judicial process, rather than resorting to underhanded deals because he believed in supremacy of constitution, rule of law and democracy.

Waqas vowed that the power usurpers’ ham-handed approach and arm-twisting tactics would ultimately fail, just as they had in the past.

He emphasized that it would be better to accept the ground reality and immediately release all political prisoners, including Imran Khan and his wife, besides establishing a powerful judicial commission comprising senior Supreme Court judges to investigate the May 9 false flag operation and the November 26 massacre at D-chowk to uncover the truth and bring the true perpetrators to justice.

Waqas stated that if Khan were to be released, the oligarchy would flee the country on the first flight because of their uncertain political future.