Electricity and Gas shortages at the domestic level are impacting the lives of residents in Pakistan

FearlessRoar

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Even though Pakistan has lots of natural resources, since 2018, we've been dealing with a serious lack of gas at home. As a person living in Pakistan, I'm facing problems like cooking and staying warm in cold weather due to this shortage. Electricity costs a lot, making it hard for common people to afford. On colder days, there's even less gas available. I'm confused about why the government isn't focusing on the well-being of everyday people.

If you are a resident of Pakistan, are you also facing these problems?
 
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Even though Pakistan has lots of natural resources, since 2018, we've been dealing with a serious lack of gas at home. As a person living in Pakistan, I'm facing problems like cooking and staying warm in cold weather due to this shortage. Electricity costs a lot, making it hard for regular people to afford. On colder days, there's even less gas available. I'm confused about why the government isn't focusing on the well-being of everyday people.

If you are a resident of Pakistan, are you also facing these problems?
These problems have become too frequent in every household. I don't know why Pakistan does not complete the Pak-Iran gas pipeline that can significantly reduce the extra load of gas in winter and solve our problems too.
 
Nothing new in winters they face a shortage of gas and in summers electricity becomes unique.

This is just pure mismanagement nothing else.
 
The gas issue in the winters seems to be getting worst every year. I think, we have wasted too much gas in the last 4-5 decades and this is why we are having this issue now.
 
Even though Pakistan has lots of natural resources, since 2018, we've been dealing with a serious lack of gas at home. As a person living in Pakistan, I'm facing problems like cooking and staying warm in cold weather due to this shortage. Electricity costs a lot, making it hard for common people to afford. On colder days, there's even less gas available. I'm confused about why the government isn't focusing on the well-being of everyday people.

If you are a resident of Pakistan, are you also facing these problems?
Why are you confused. The govt of PK is run for the benefit of a few people. The common man is worth nothing
 
I was in Karachi last week; it was my first time back in years. It was such a struggle to get gas. I had to go to my neighbor's house to cook!
 
Again today, after the whole day, gas supply has come at midnight, 2:00 am. The whole day, there is no gas to use, even for cooking food.
 
Why are you confused. The govt of PK is run for the benefit of a few people. The common man is worth nothing
Bro, it wasn't like this back in the tenure of Nawaz Sharif. Everything started getting worse as the reign of Imran Khan began, and still, we are suffering.
 
Bro, it wasn't like this back in the tenure of Nawaz Sharif. Everything started getting worse as the reign of Imran Khan began, and still, we are suffering.
Really. I expected you to at least understand that all our problems stem from Munshis desperation to artificially control the RP to Dollar value.

So let's take you back to era of NS from 2013 to 18. He had the benefit of the lowest commodity prices in recent history. This should have been the launching pad for an era of super growth but exports fell even lower than the PPP levels, why was that. Well bro you need to explain why NS and Munshi kept the exchange rate over valued by some estimates to be 35%. This my bro had the affect of making our exports 35% more expensive and imports 35% more cheaper. This my bro led to a BOP crisis where at the end of his era, IMF was being called to start negotiations as our reserves were down to less than 3 months imports.
And you my bro should also know that electricity prices are as high as they because NS decided to pay the IPPs in dollars which IK had to renegotiate and fixed at around 147( from memory). Why did he give sovereign guarantees in dollars and use the most expensive form of electricity generation ie oil and gas. Bro we need answers.

NS scammed PKs with his short term, economically illiterate rubbish because he got lucky with low oil prices. And as he has been in power for nearly 2 years, what went wrong this time bro.
 
It's pity that we can't provide people with basic necessities.
And we won't until we get stability, rebalance our economy and I never I thought I would say this but cut our millitary expenditure by at least 20%. Its not as if our millitary defends us from any enemies. Its more like they take orders from the very same people.
 
Really. I expected you to at least understand that all our problems stem from Munshis desperation to artificially control the RP to Dollar value.

So let's take you back to era of NS from 2013 to 18. He had the benefit of the lowest commodity prices in recent history. This should have been the launching pad for an era of super growth but exports fell even lower than the PPP levels, why was that. Well bro you need to explain why NS and Munshi kept the exchange rate over valued by some estimates to be 35%. This my bro had the affect of making our exports 35% more expensive and imports 35% more cheaper. This my bro led to a BOP crisis where at the end of his era, IMF was being called to start negotiations as our reserves were down to less than 3 months imports.
And you my bro should also know that electricity prices are as high as they because NS decided to pay the IPPs in dollars which IK had to renegotiate and fixed at around 147( from memory). Why did he give sovereign guarantees in dollars and use the most expensive form of electricity generation ie oil and gas. Bro we need answers.

NS scammed PKs with his short term, economically illiterate rubbish because he got lucky with low oil prices. And as he has been in power for nearly 2 years, what went wrong this time bro.
Bro, for the point that Nawaz Sharif built the economy on an artificial basis, that's true. I can't deny it. But Imran Khan had four years in office, and he didn't undertake any mega projects for the well-being of Pakistan. He could have initiated some mega projects related to gas supply in Pakistan, which could have addressed this issue at least.

We desperately need gas supply contracts with neighboring countries. Qatar or Iran can supply us gas at a cheap cost. The amount of gas reserves available in Pakistan is only enough for 50% of the consumption rate at the domestic level.
 
Bro, for the point that Nawaz Sharif built the economy on an artificial basis, that's true. I can't deny it. But Imran Khan had four years in office, and he didn't undertake any mega projects for the well-being of Pakistan. He could have initiated some mega projects related to gas supply in Pakistan, which could have addressed this issue at least.

We desperately need gas supply contracts with neighboring countries. Qatar or Iran can supply us gas at a cheap cost. The amount of gas reserves available in Pakistan is only enough for 50% of the consumption rate at the domestic level.
For a start IK started the historic dams that everyone talked about but only paid media attention to. These alone will bring massive improvements to our cheap electricity generation and cheap is the operative word. The billion tree Tsunami will have a massive impact on PK environment
And you are blaming IK for the lack of gas but NS has been in power. Why has NS totally destroyed the PK economy once again after IK had got the economy growing at 6%.
 
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For a start IK started the historic dams that everyone talked about but only paid media attention to. These alone will bring massive improvements to our cheap electricity generation and cheap is the operative word. The billion tree Tsunami will have a massive impact on PK environment
And you are blaming IK for the lack of gas but NS has been in power. Why has NS totally destroyed the PK economy once again after IK had got the economy growing at 6%.
Bro, which dams are you talking about? I'm not blaming IK for the gas crisis. I'm blaming his bad policies regarding overcoming the shortage of gas in the country.
 
Bro, which dams are you talking about? I'm not blaming IK for the gas crisis. I'm blaming his bad policies regarding overcoming the shortage of gas in the country.
Mohmand Dam. NS and others had been pussey footing around for years and it wasn't IK that raised their profile that people took them seriously.
 
Bro, which dams are you talking about? I'm not blaming IK for the gas crisis. I'm blaming his bad policies regarding overcoming the shortage of gas in the country.
But you told us that under NS things were good but I proved to you that our problems today are a result of his negligence and incompetence in both 2013-18 and the last 2 years.
 
But you told us that under NS things were good but I proved to you that our problems today are a result of his negligence and incompetence in both 2013-18 and the last 2 years.


Pakistan signs landmark 15-year LNG supply deal with Qatar( Nawaz Sharif's tenure 2016)


Prime Minister Imran Khan has come under fire after his government abandoned an offshore drilling project due to failure to find any oil and gas, with some critics saying he had announced the doomed plans to deflect attention from the massive loan it was negotiating with the International Monetary Fund.


The gas shortage is hitting Pakistan at a critical economic and political juncture. The country is struggling with accelerating inflation and a weakening currency, with support for Prime Minister Imran Khan’s ruling party ebbing ahead of national elections due in 2023. The government also needs to raise taxes, and has just increased petrol price levies, as a pre-condition to resume its $6 billion bailout program with the International Monetary Fund.

 
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Pakistan signs landmark 15-year LNG supply deal with Qatar( Nawaz Sharif tenure 2016)


Prime Minister Imran Khan has come under fire after his government abandoned an offshore drilling project due to failure to find any oil and gas, with some critics saying he had announced the doomed plans to deflect attention from the massive loan it was negotiating with the International Monetary Fund.


The gas shortage is hitting Pakistan at a critical economic and political juncture. The country is struggling with accelerating inflation and a weakening currency, with support for Prime Minister Imran Khan’s ruling party ebbing ahead of national elections due in 2023. The government also needs to raise taxes, and has just increased petrol price levies, as a pre-condition to resume its $6 billion bailout program with the International Monetary Fund.

With Pakistan facing a gas shortage, it urgently requires securing long-term LNG deals for ensuring stable supplies – an opportunity missed by the then PTI government due to its short-sighted policies during the COVID pandemic when the gas prices had slumped. Meawnhile, the country is facing the since then.

Meanwhile, the country facing the consequences since then as the PTI government opted for spot buying – a strategy that has been producing devastating results not only in the shape of gas shortage but also expensive electricity because of reduced supply to the LNG-fired power plants. ( Dunya News 20th December 2023)

 
Nothing new in winters they face a shortage of gas and in summers electricity becomes unique.

This is just pure mismanagement nothing else.
True, colder the weather, the more gas load shedding, and hotter the weather, the more electricity load shedding.
 
Pakistan signs landmark 15-year LNG supply deal with Qatar( Nawaz Sharif's tenure 2016)


Prime Minister Imran Khan has come under fire after his government abandoned an offshore drilling project due to failure to find any oil and gas, with some critics saying he had announced the doomed plans to deflect attention from the massive loan it was negotiating with the International Monetary Fund.


The gas shortage is hitting Pakistan at a critical economic and political juncture. The country is struggling with accelerating inflation and a weakening currency, with support for Prime Minister Imran Khan’s ruling party ebbing ahead of national elections due in 2023. The government also needs to raise taxes, and has just increased petrol price levies, as a pre-condition to resume its $6 billion bailout program with the International Monetary Fund.

I am not sure what this shows. IK signed a deal that was cheaper than NS. Why was NSs more expensive? Why did IK get it cheaper.

 
The Oil and Gas Regulatory Authority (Ogra) increased on Monday the rates of liquefied petroleum gas (LPG), said a notification.

The 11.8kg domestic cylinder price has been increased by Rs18.52, bringing its new cost to Rs3,025.87. Moreover, Ogra set the price of LPG at Rs256.42 per kg.

The decision comes a day after the government kept the petroleum products prices unchanged for the next fortnight.

Last month, Ogra increased the price of LPG by about 1.5%.

Source: AAJ News

 
Gas isn't available for daily use all day, and now they've also increased the prices. Quite amazing, isn't it?
 
Gas isn't available for daily use all day, and now they've also increased the prices. Quite amazing, isn't it?

Govt removed the subsidy and adjusted the price to the market rate which they should had done long time ago.
 
Govt removed the subsidy and adjusted the price to the market rate which they should had done long time ago.
So the PK state doesn't provide jobs, health care, or any decent education. It doesn't provide any sort of security or any kind of dignity. The question has to be asked as to what does it actually do
 
So the PK state doesn't provide jobs, health care, or any decent education. It doesn't provide any sort of security or any kind of dignity. The question has to be asked as to what does it actually do
when you are taking loans, you are not suppose to be giving out subsidies, because either way the debt has to be paid
 
when you are taking loans, you are not suppose to be giving out subsidies, because either way the debt has to be paid
But why are we are taking loans? Where does the public benefit from these loans. Are the loans only for the elite to serve apprenticeships as FM like Billo? We gave free health to the poor and millions benefitted, Nani told SS to scrap it because people associated it with IK. My point is that what does the PK state do for its citizens. Can you name something things that an average person benefits from being a PK national
 
But why are we are taking loans? Where does the public benefit from these loans. Are the loans only for the elite to serve apprenticeships as FM like Billo? We gave free health to the poor and millions benefitted, Nani told SS to scrap it because people associated it with IK. My point is that what does the PK state do for its citizens. Can you name something things that an average person benefits from being a PK national
i dont want to discuss politics, because its irrelevent and time waste as you will defend everything PTI did.

Health care was on IMF loans that had to be paid back. You cant run free health care programs on loan money.

Pakistani nationals will only get benefits from govt when we shift from a loan based economy towards a properly taxed economy.

Instead of advocating for subsidies on the basis of loan money, maybe advocate for more taxes on businesses and than use that money as subsidy. Not the money on which the nation also has to pay cost of credit on.

For years a subsidy was being given on gas and gas prices increase in international market in these months.
 
i dont want to discuss politics, because its irrelevent and time waste as you will defend everything PTI did.

Health care was on IMF loans that had to be paid back. You cant run free health care programs on loan money.

Pakistani nationals will only get benefits from govt when we shift from a loan based economy towards a properly taxed economy.

Instead of advocating for subsidies on the basis of loan money, maybe advocate for more taxes on businesses and than use that money as subsidy. Not the money on which the nation also has to pay cost of credit on.

For years a subsidy was being given on gas and gas prices increase in international market in these months.
But you can travel the World on those Same loans. You can pay billions to buy the media with those those same loans, you can pay billions to MNAs with those same loans but you can't give free health care to the ones that are most in need. I get you bro
 
Even though Pakistan has lots of natural resources, since 2018, we've been dealing with a serious lack of gas at home. As a person living in Pakistan, I'm facing problems like cooking and staying warm in cold weather due to this shortage. Electricity costs a lot, making it hard for common people to afford. On colder days, there's even less gas available. I'm confused about why the government isn't focusing on the well-being of everyday people.

If you are a resident of Pakistan, are you also facing these problems?
Why r you still confused? The country belongs to the elite. You are their naukar. You are there to service them..you have two choices continue to do so or get rid..if you r not prepared to change anything don't complain.
 
But why are we are taking loans? Where does the public benefit from these loans. Are the loans only for the elite to serve apprenticeships as FM like Billo? We gave free health to the poor and millions benefitted, Nani told SS to scrap it because people associated it with IK. My point is that what does the PK state do for its citizens. Can you name something things that an average person benefits from being a PK national
You can wait a million years and he won't be able to answer. Just leave it. Let them enjoy the fruits of their labour..the mitha tukur they r going to get is gonna be something to watch.
 
You can wait a million years and he won't be able to answer. Just leave it. Let them enjoy the fruits of their labour..the mitha tukur they r going to get is gonna be something to watch.
doesn't mater where the loans go.

you borrow money, hoping make a lot more than you borrowed by using the loan. Pakistan has been borrowing money forever and chickens are coming home to roost as there is no more bailouts like they got from Nixon, Reagan, Bush Sr and Bush Jr.
 
The National Electric Power Regulation Authority (NEPRA) on Wednesday approved the K-electric plea to increase the power tariff for Karachi by Rs 2.87 per unit, ARY News reported.

According to the power regulatory authority, NEPRA approved the hike in electricity in the wake of the quarterly fuel adjustment for second time.

With this hike, the burden on Karachi power consumers in the wake of quarterly fuel adjustments will reach Rs 4.12. The hike was approved under the adjustment period from January to March 2023.

The power regulatory authority has sent the decision to federal government to notify the hike.

Earlier, at the request of the caretaker government, the National Electric Power Regulatory Authority (NEPRA) approved the tariff hike to maintain the uniform electricity tariff across the country.

According to the issued notification, the power regulatory authority approved the surge of Rs1.72 per unit for K-Electric (KE) consumers on account of third-quarterly adjustment charges for the previous financial year.

The notification stated that a rise of Rs 1.25 per unit was approved under the adjustment period from January to March 2023, along with Rs 0.47 per unit sanctioned for the adjustment period from October to December 2022.

The national power regulatory, NEPRA, sent the official notification of the electric tariff hike to the federal government, meanwhile, electricity consumers in Karachi have to pay additional charges from January to March 2024 bills.

Source: ARY

 
It's already been three weeks of electricity load shedding every hour, and they're increasing prices for what?
 
When the whole State and Dollar Army are on a mission to cripple a political party, you deserve every bit of misery.

It is about time for Fitna Army to head back to borders and let awaam choose its elected people on free will. These generals have destroyed and brought Pakistan to its knees in mere 75 years.
 
Sui Northern Gas Pipelines Limited (SNGPL) has decided to suspend the gas supply to Combined Natural Gas (CNG) stations

As per details, the spokesperson said that the decision to suspend the gas supply to CNG station was taken in the wake of the ongoing gas crisis.

He said that the gas supply will remain suspended to CNG stations across all the regions of Peshawar from tomorrow onwards.

Earlier, different parts of Punjab including the provincial capital of Lahore, are facing electricity and gas shortages.

According to sources, due to a shortfall in demand and supply of electricity, the load shedding tenure has increased up to three hours in urban cities and 6 hours in the rural areas of Punjab.

The shortfall has occurred as the government reportedly failed to reopen the closed power plants.

In a separate development, the Sui Southern Gas Company Limited (SSGC) announced the gas supply suspension to industries in Karachi as the gas crisis worsened.

As per the SSGC spokesperson, due to the shortage and low pressure, SSGC decided to suspend the gas supply for the next 48 hours to the industries, CNG stations, and captive power plants located in the metropolis.

Source : Ary News
 
Enraged protestors in Lahore blocked Gurumangat Road to record their protest against the gas shortage in the area.

As per details, protestors in large numbers forcibly entered the SNGPL office after breaking its main gate and chanted slogans against the GM of the company for gas shortage.

The protestors said they are receiving the bills from the SNGPL but not the gas, which has compelled them to arrange gas at higher rates for cooking.

Later, the GM of the company negotiated with the protestors and assured them provision of gas at the time of cooking.

After the assurance, the protestors peacefully left the SNGPL office and dispersed.

Earlier this week, Sui Northern Gas Company (SNGC) added fix charges to the November bills of the consumers after approval from the caretaker government.

According to officials, protected consumers using 0.9 hectometer gas will pay Rs400 as fixed monthly charges, while non-protected users consuming up to 1.5 hecta meters will be charged an additional Rs1,000 in their bills.

Officials say consumers whose usage of gas is ZERO will also pay Rs400/monthly fixed charges.

Source: ARY

 
Pakistan on Wednesday announced the successful procurement of a second LNG cargo from the State Oil Company of the Azerbaijan Republic (SOCAR).

According to the statement, Energy Ministry and Pakistan LNG Ltd (PLL) secured LNG cargo agreement from SOCAR.

The cargo is scheduled for delivery next month.

In July last year, Pakistan had signed a landmark framework agreement with Azerbaijan for LNG procurement on flexible terms.

Pakistan also purchased a liquefied natural gas shipment for January delivery to address fuel deficit this winter.

Pakistan LNG Limited (PLL) has awarded tender to Oman’s OQ Trading for a spot LNG cargo to be delivered in January.

State-run PLL has secured the shipment at a price premium to the spot market due in part to Pakistan’s credit risk, sources said.

Pakistan has struggled to procure spot cargoes of LNG after global prices spiked last year following Russia’s invasion of Ukraine, leaving it to face widespread power outages.

The PLL had earlier invited from international suppliers for the supply of one LNG cargo on a Delivered Ex-Ship (DES) basis at Port Qasim, Karachi.

PLL has been mandated by the government to import and sell natural gas, LNG and re-gasified LNG.

It procures LNG from international markets and enters into onward arrangements for the supply of gas to end users, managing the whole supply chain of LNG.

Source: ARY

 
Two-day gas suspension

As the government is planning to bring down power tariff for industrial consumers to nine cents per kWh , the Sui Southern Gas Company Ltd (SSGCL) has announce that it would keep gas supplies to all the industries including their power generation units and all CNG stations in Sindh suspended for 48 hours starting from 8am on Jan 27.

SSGCL said the availability of gas has decreased due to shortage of gas supplies in the system, resulting in depletion of line packs, causing low pressure in the system.

The company had initiated 48 hours gas suspension from the last week of December 2023.
SOURCE: DAWN
 
It's a Failed state all thanks to the useless institution.
 
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The citizens of Karachi’s Liaquatabad town area blocked the road to record their protest after experiencing a prolonged power outage in Bandhani Colony on Saturday, ARY News reported.

According to the details, the flow of traffic has been suspended on the road from Hasan Square to Liaquatabad after the protestors blocked the road after experiencing a prolonged power outage in their area.

Due to the protest the flow of traffic also got affected on surrounding roads, while the road connected to the Gharibabad furniture market has also been closed for general traffic.

Earlier this week, K-Electric issued an alert notification for its consumers regarding the power outage in the following areas of Karachi.

According to the issued notification, the KE team will conduct critical maintenance in the grid supplying power to several areas of Karachi including Baldia Town and Mahmoodabad area.

Due to this maintenance work the residents of the Baldia Town and Mahmoodabad area will face a temporary power shutdown tomorrow.

The KE officials urged that the maintenance of the grid is essential to keep the stability of the system.

Source: ARY

 
Load shedding has been ongoing with electricity, and now they've also increased the rates. This inflation has broken the backbone of the public.

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The National Electric Power Regulatory Authority (NEPRA) Wednesday increased the electricity tariff by Rs5.63 per unit on account of monthly fuel adjustment (MFA), ARY News reported.

The decision was announced after the NEPRA completed a hearing on the Central Power Purchasing Agency (CPPA) petition seeking a hike in electricity tariff by Rs5.63 per unit under fuel monthly adjustment for December 2023.

The approval will put an additional burden of Rs49 billion on the power consumers. The consumers will pay an additional amount in next month’s electricity bills.

The recent power hike will not affect K-Electric and Lifeline consumers. The NEPRA said it will release the detailed verdict later.

It is to be noted that the NEPRA jacked up the power tariff by Rs4.13 per unit under fuel adjustment for November.

Earlier, at the request of the caretaker government, the National Electric Power Regulatory Authority (NEPRA) approved the tariff hike to maintain the uniform electricity tariff across the country.

Source: ARY

 
The Oil and Gas Regulatory Authority (OGRA) has increased the price of liquefied petroleum gas (LPG), fixing at Rs257.6 per Kilogram, ARY News reported.

According to a notification issued by OGRA, the price of LPG is increased by Rs1.17 per kg which will be in effect from February 1.

Meanwhile, the rate of LPG’s domestic cylinder weighing 11.8kg has been increased by Rs13.76. After the hike, the new rate of LPG domestic cylinder stood at Rs3, 040.

Earlier on 1st January, the OGRA has increased LPG by Rs1.57 to Rs256.42 per kg. The price of a domestic LPG cylinder, weighing 11.8kg was fixed at 3,025.87.

Source: ARY

 
Electricity prices have gone up, and now gas prices are on the rise too. It doesn't seem like politicians are bothered about it.
 
Visionary Shehbaz Sharir already monopolise the solar panel industry only for his son to benefit with sky rocketing electricity prices every Pakistani Joe is striving towards solar Panel.
As far as Domestic Gas is concerned it is already a luxury in Pakistan since the end of Musharraf era. Now many top notch residential areas in the country doesn't have sui gas and cylinders/ devices are the way forward. Pakistan has speed up to reverse back a century, shameful
 
Electricity prices up by Rs4.56 per unit

The National Electric Power Regulatory Authority (Nepra) has announced an increase in the cost of electricity by Rs4.56 per unit, effective immediately.

This adjustment comes as part of the December fuel adjustment and will be reflected in consumer bills for the upcoming month.

Key Points:

  • The hike applies to all consumer categories except for those served by K-Electric and lifeline customers.
  • The increase is attributed to variations in fuel costs incurred during December 2023.
  • The exact impact on individual bills will vary depending on consumption levels and specific tariff categories.
Impact on Consumers:

  • This additional cost is likely to add to the financial burden of households and businesses already grappling with rising inflation.
  • Industries reliant on electricity may face increased production costs, potentially impacting product prices.
Exemptions and Concerns:

  • The exclusion of K-Electric and lifeline customers aims to provide some relief to vulnerable segments of the population.
  • However, concerns remain regarding the overall impact on affordability and the potential economic ripple effects.
Further Developments:

  • It is unclear how this price adjustment will affect future fuel cost adjustments and overall electricity tariffs.
  • Consumers are advised to be mindful of their energy consumption and explore energy-saving measures to mitigate the impact of rising costs.
On Wednesday, NEPRA had issued an initial recommendation to increase the electricity price by a significant Rs5.62 per unit, based on December's fuel price adjustment. The meeting was chaired by Nepra Chairman Waseem Mukhtiar.

This translates to an estimated additional burden of Rs42 billion on consumers nationwide in February in terms of monthly fuel adjustments. The decision came after a hearing on the Central Power Purchasing Agency's (CPPA) request, seeking the price hike to cover rising fuel costs.

According to CPPA, the reference fuel price for December was set at Rs5.40 per unit, significantly higher than the average cost per unit of Rs11 in December. NEPRA has granted preliminary approval to CPPA's request, but a final decision will be issued after further data analysis.

This potential price hike comes on the heels of several recent increases, further straining household budgets and stoking public anxieties.

Samaa TV
 
The International Monetary Fund (IMF) on Sunday asked Pakistan to hike the gas tariff, ARY News reported, citing sources.

According to sources, the IMF demanded Pakistan to increase gas prices till mid-February, the hike in gas prices could go up to 41 percent.

Sources said that the IMF refused to provide subsidies on the power tariff except for the subsidies given in the budget.

Sources revealed that Rs 1000 billion cash will released for the petroleum sector, Rs 250 billion for power sector, Rs 600 billion for OGDCL whereas Rs 150 will be issued for the PPL.

Earlier, Pakistan shared an electricity tariff plan for the export sector with the International Monetary Fund.

As per details, the Pakistan government proposed lowering the power tariff to 9 cents from 14 cents to the export sector. Sources familiar with the development said the plan will be enforced after approval of the international lender.

It is to be noted that the International Monetary Fund (IMF) once rejected the decision to lower the power tariff for the export sector.

The export sector of Pakistan has been demanding the government to lower the power tariff to boost the exports of the country.

It is pertinent to mention here that the International Monetary Fund (IMF) revised down Pakistan’s growth estimate for fiscal year 2024 to two percent – a 0.5pc reduction from October outlook, stated its World Economic Outlook (WEO).

Source: ARY

 
If gas costs go up by 41 percent, it could make life more expensive for everyone, especially those with fixed incomes. The IMF is also not willing to help with lower power costs, which could add more financial pressure. This might affect how much money people have for everyday things and could make life tougher for many.
 
This kind of reporting in local Pakistani news (no doubt fed by leaks from politicians) is very dangerous. Folks in Pakistan have to realise that the IMF doesn't "want" any specific steps like an increase in Gas prices.

All it asks is for Pakistan (or any of it's regular borrowers) to balance it's books - dollars in vs. dollars out as quick as possible so that they do not come back asking for fresh loans in a cycle.

Usually it asks for countries to make their own plans (within certain constraints) and stick to them. In the case of the worst borrowers like Pakistan though, it gets a lot more prescriptive because the countries have a history of making unrealistic plans, failing to meet them and then coming back for fresh emergency funding. Therefore it works a lot more closely with the country to build the plan, force realistic assumptions and disburse money in instalments linked to implementation of the country's own plans.

I don't know the specifics of this case but I have no doubt that Pakistan committed to keeping it Gas prices in line with input costs as a condition of the loan. all the IMF is asking is for Pakistan to keep to it's commitment,
 
This kind of reporting in local Pakistani news (no doubt fed by leaks from politicians) is very dangerous. Folks in Pakistan have to realise that the IMF doesn't "want" any specific steps like an increase in Gas prices.

All it asks is for Pakistan (or any of it's regular borrowers) to balance it's books - dollars in vs. dollars out as quick as possible so that they do not come back asking for fresh loans in a cycle.

Usually it asks for countries to make their own plans (within certain constraints) and stick to them. In the case of the worst borrowers like Pakistan though, it gets a lot more prescriptive because the countries have a history of making unrealistic plans, failing to meet them and then coming back for fresh emergency funding. Therefore it works a lot more closely with the country to build the plan, force realistic assumptions and disburse money in instalments linked to implementation of the country's own plans.

I don't know the specifics of this case but I have no doubt that Pakistan committed to keeping it Gas prices in line with input costs as a condition of the loan. all the IMF is asking is for Pakistan to keep to it's commitment,
The IMF is stepping in because our country is financially struggling, and we're relying on their loans. This means they have a say in our economic decisions and it is really disheartening.
 
The federal cabinet on Thursday increased gas prices for residential users up to 67% and for fertiliser plants by 700% to recover additional Rs242 billion from all the consumers – in a decision that attempts to bring some equity in the rates of the fast depleting natural asset.

Immediately after the cabinet meeting, the Oil and Gas Regulatory Authority (OGRA) issued the notification of the new gas prices aimed at meeting the International Monetary Fund’s (IMF) condition to raise prices by February 15th –Thursday. The decision would take effect from the first of February and the new bills would be issued with revised rates, showed the notification.

Prime Minister Anwaarul Haq Kakar chaired the cabinet meeting, which gave the go ahead to increase the gas prices for the second time in the past three months.

The decision also puts an unreasonable burden on a class of residential consumers using more than 2 cubic hectometers (Hm3) gas for creating fiscal space to pay subsidies to other domestic consumers.

The interim cabinet also finally took the much-delayed but needed decision to withdraw the Rs50 billion subsidies of the few fertilisers plants, which were earlier given preferential treatment by robbing the industrial consumers.

Interim Finance Minister Dr Shamshad Akhtar played a pivotal role in the withdrawal of the fertiliser plants’ subsidy, although the energy minister was in favour of continuing these subsidies. The fertiliser plants were availing these subsidies without passing on the benefit to the farmers.

The Economic Coordination Committee (ECC) of the cabinet held two rounds to approve these prices and finally took the decision on Wednesday.

The federal cabinet has ratified the ECC decision of February 14th, reads a press statement issued by the Prime Minister’s Office after the cabinet meeting on Thursday.

It is the third increase in the prices that the consumer would bear amid double-digit inflation. The increase has thrown an additional burden of Rs242 billion on the consumers, including Rs37 billion that the government would earn in sales tax.

It was also the second revision in the gas prices by the caretaker government in the past three months after it earlier increased the prices up to 1108% - the highest for the most vulnerable households.

The fresh revision has also put the maximum burden on the most vulnerable households with a 67% or Rs100 increase per unit for the domestic monthly consumption of 0.5 cubic hectometers (HM3). For the other protected domestic consumers the increase is in the range of Rs200 to Rs250 – also ranging from 25% to 67%.

The prices for non-protected residential consumers are either now close to the prescribed price of Rs1,597 per mmbtu or even higher than the prices of imported Re-gasified Liquefied Natural Gas (RLNG). The rates for 1.5 Hm3 consumers have been increased to Rs1,450 – higher by 21%.

The new prices for the 2 hm3 monthly consumption consumers are Rs1,900 – up by 19% - and Rs300 more than the cost of gas they need to pay. Similarly for the next slab of 3 Hms consumption, the new rate is Rs3,300 – close to the imported gas rate of Rs3,750.

The two highest residential slabs are charged rates that are even higher than the imported gas prices –Rs3,800 and Rs4,300. They are now forced to pay for the subsidies of other domestic consumers, which is unjustifiable.

The OGRA early this month issued a determination of revised estimated revenue requirements (RERR) for FY 2023-24 for both SNGPL and SSGCL. According to the revised determination, SNGPL requires a revenue of Rs592 billion and SSGCL requires a revenue of Rs310 billion this fiscal year, the total revenue requirement has been determined at Rs902 billion arriving at an average prescribed price of Rs1,596 per mmbtu.

The residential consumers of housing societies that buy gas in bulk will face a 45% increase in their prices. Their new rate is Rs2,900 – up by Rs900 compared to current rates that too are just three months old.

The fresh increase in prices is expected to further fuel the inflation that remains far higher than the goal set by the central bank. The inflation rate in January remained at 28.4% as against the annual target of 21%.

The cabinet approved to further increase the gas prices for the in-house power generation of the industries for both the export and non-export sectors. Going forward, the cabinet has ended the distinction of the export and non-export and a new uniformed rate for in-house gas plants has been set.

The cabinet approved to increase the captive plants rates from Rs2,200 to 2,750 for exporters and from Rs2,500 to 2,750 for local production – an increase ranging from 10% to 25%. The Petroleum Division had proposed Rs2,950 per mmbtu rate, which was opposed by the industry minister.

Pakistan Textile Exporters Association (PTEA) Pattern-in-Chief Khurram Mukhtar emphasised the need to negotiate sustainable energy tariffs with the IMF and rationalise cross subsidies on industrial energy tariffs to support growth. Just raising energy tariffs is not going to work; strict enforcement requires reducing T&D losses and full bills recovery, said Mukhtar. Current hike in gas and electricity tariffs is disastrous for the economy and lacks any wisdom, he added.

The interim cabinet has taken some corrective measures to stop the misuse of subsidy by the fertiliser plants. These plants were availing subsidised gas but were still selling expensive urea to the farmers. The cabinet approved to increase the feed gas prices for Engro Fertiliser from Rs200 to Rs1,597 per mmbtu –a surge of 700% that ends Rs39 billion subsidies. The effective date for revised gas tariff for Engro Fertiliser is 1st March, 2024.

It also approved to increase gas prices for Fauji Fertiliser Bin Qasim Limited (FFBQL) from Rs580 to Rs1,597 mmbtu, showing an increase of 175% and ending its Rs10 billion subsidy.

Agritech and Fatima Fertiliser are currently getting RLNG from SNGPL network. The cabinet approved increasing their prices by 29% to Rs1,597 per mmbtu, which is the average prescribed price in case these plants are offered system gas on SNGPL.

The government still has to increase the gas prices for those fertiliser plants, which are availing the gas from the Mari Gas network.

For the CNG sector, the government has increased the prices from Rs3,600 per mmbtu to Rs3,750 per mmbtu equivalent to the RLNG price being the fuel for majority CNG producers in the country.

Express Tribune

 
This decision aligns with the International Monetary Fund's conditions, and it's the third increase in the past three months. And this will burden the poor public to fulfill the IMF's conditions.
 
The federal cabinet approved the works on an 80-kilometer (km) segment of the pipeline from Gwadar to the Iran border in the initial phase under the Iran-Pakistan (IP) Gas Pipeline project, ARY News reported.

In a press statement, the federal cabinet confirmed it has approved laying an 80 km pipeline on Pakistan’s territory on the recommendation of the Cabinet Committee on Energy (CCoE).

The cabinet announced that the pipeline would be laid from Gwadar to Iran’s border with Pakistan. The estimated cost of the project is 150.8 million US dollars.

The funds for the project would be provided by the Gas Infrastructure Development Cess (GIDC), the statement said.

The sources said that Pakistan would be able to avoid an 18 billion US dollar fine with the laying of the pipeline.

Additionally, Pakistan would save more than 5 billion US dollars annually after buying gas from Iran.

Earlier in its meeting, the Cabinet Committee on Energy okayed the laying of an 80 km pipeline in the initial phase.

The CCoE said that the project would be executed by Inter State Gas Systems (Pvt) Ltd. and will be funded through Gas Infrastructure Development Cess.

All the concerned divisions gave a positive nod to move ahead with the project to ensure gas supplies to the people of Pakistan, thereby addressing the increasing energy needs of the country.

“This will not only boost energy security of Pakistan but would enhance confidence of the local industry who would be ensured with the enhanced gas supplies. This will also catalyse the economic activity in the province of Balochistan and will contribute to the economic progress of Pakistan,” the CCoE added.

The sources privy to the development said that Pakistan would complete the laying of the pipeline within a year.

Earlier on February 21, a meeting of the Cabinet Committee on Energy (CCoE) was summoned on Friday to discuss matters related to the construction of the Pakistan-Iran Gas Pipeline.

The sources privy to the development said that Pakistan wants to lay an 80-kilometer pipeline to the Iran border in the initial phase.

ARY

 
I hope this project will be completed on time and people can get some relief.
 
I hope the upcoming coalition govt. fulfills its promise of 300 free units etc because these hikes are pressing the poor only.

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NEPRA orders inquiry into power rate hike demand

The National Electric Power Regulatory Authority (NEPRA) has initiated an inquiry into the operations of Power Distribution Companies (Discos) following their request for a Rs7.13 per unit increase in electricity rates for the month of January 2024 under the fuel adjustment mechanism.

During a hearing on Friday, NEPRA Chairman Waseem Mukhtar expressed concerns over the demand, noting that there were no changes in fuel prices and exchange rates.

Mukhtar, alongside members Engineer Maqsood Anwar Khan and Rafique Ahmad Shaikh, delved into the details of the Central Power Purchasing Agency (CPPA)'s petition.

The regulatory voiced serious concerns about the hefty proposed increase, attributing it to systemic deficiencies within distribution companies.

NEPRA's scrutiny revealed irregularities in load-shedding patterns across regions, raising doubts about the authenticity of the proposed adjustments, despite claims of low power demand.

Furthermore, NEPRA drew attention to a backlog of pending power connections, amounting to 550 MW, criticising Discos for their inability to justify previous claims made during hearings.

With 160,000 pending connections in Discos, Chairman Mukhtar underscored NEPRA's commitment to accountability, announcing plans for a comprehensive investigation into Discos' operations under the 27A of the NEPRA Act.

In addition to seeking an increase in rates, distribution companies are also looking to impose a burden of Rs26.7 billion on consumers in a single month, citing transmission system stability issues.

Meanwhile, member Rafique Ahmad Shaikh questioned the petitioner about the substantial claim, particularly regarding challenges in the South-North transmission corridor over several years.

The petitioner clarified that the issue stemmed from system stability rather than constraints.

The ongoing situation demands urgent attention and a proactive approach from the government, economy, and the power sector, stated Mukhtar, urging the Power Division to devise effective strategies to mitigate the prevailing challenges.

The NEPRA chief emphasized the imperative for tangible solutions to prevent further escalation of prices and demand, cautioning against perpetuation of the current cycle.

In light of stable fuel prices and exchange rates, NEPRA admonished the power division against unfounded claims, signalling a departure from previous leniency towards such requests.

The chairman concluded by reaffirming NEPRA's commitment to serving both the government and consumers, asserting a zero-tolerance policy towards failures in power provision and urging proactive measures to address systemic inefficiencies.

The NEPRA's decision marks a significant step towards enhancing transparency and accountability within Pakistan's power sector, as stakeholders work towards sustainable solutions to meet the nation's energy needs.Directive against excessive billings scamMeanwhile, the NEPRA issued directives on Friday to power distribution companies to take action against officials involved in an overbilling scam.

The move comes following a NEPRA inquiry in December 2023, revealing that not a single distribution company had carried out correct billings.

The inquiry disclosed that over 13 million consumers were charged for more than 30 days of electricity usage, while 0.4 million consumers received average bills due to faulty meters.

However, the power division had contested this inquiry, claiming that only 0.2 million consumers were overcharged.

NEPRA, standing firm on its inquiry claims, issued directives to XWDiscos and K-Electric to address consumer issues and take action against those involved in the overbilling scam. These companies failed to provide a satisfactory reply to the inquiry report following widespread complaints in July-August 2023.

NEPRA issued directives to these companies including K-Electric to implement NEPRA’s inquiry report’s recommendation.

According to Nepra’s inquiry report published in December 2023, K-Electric is the only company found using handheld devices for meter readings, which are an effective solution for ensuring transparency in the meter reading and billing process.

The report also found that K-E’s monthly billing cycles follow the regulatory guidelines and has observed no lapse from the company in this regard.

The inquiry report also shows that no customers were found to have been fleeced by a change of slab or deprived of their protected or lifeline status due to an error by K-E in meter reading.

In response to widespread complaints and irregularities in electricity billing practices, the regulatory has issued a comprehensive directive to distribution companies outlining steps for immediate rectification.

It directed DISCOs to adhere to recommendations outlined in the Inquiry Report and GOP inquiry report, particularly focusing on the replacement of defective meters older than two months (July and August 2023).

Consumers will now be charged based on actual readings instead of excessive or averaged bills, ensuring fair billing practices.

DISCOs were instructed to collaborate with the Power Information Technology Company (PITC) to review inflated bills dating back to June 2023.

This review aims to rectify billing discrepancies, especially for protected/lifeline consumers who may have been wrongly categorised due to billing cycle extensions beyond 30 days.

SOURCE: https://tribune.com.pk/story/2457445/nepra-orders-inquiry-into-power-rate-hike-demand


The directive also addresses accountability, requiring DISCOs to take disciplinary action against officers found in violation of regulations. Specifically, HESCO, SEPCO, TESCO, and PESCO are mandated to scrutinise unrecovered detection bills from July 2018 to June 2023 for accuracy and initiate recovery procedures where necessary.

Furthermore, Discos are reminded to strictly adhere to the Consumer Service Manual (CSM) and tariff terms, including meter readings within 30-day billing cycles and accurate issuance of detection bills. Education on relevant regulations and consumer eligibility criteria for Disco officers is also emphasised.

DISCOs are given a one-month deadline to rectify identified discrepancies and submit a compliance report to the regulatory authority. Failure to comply may result in the Authority initiating legal proceedings under relevant regulations.
 
Gas outages protested in Kohat

Hundreds of women blocked Rawalpindi road near Bahawalnagar here on Monday to protest gas outages.

The protesting women said that gas was supplied to domestic consumers only for three hours during day and night. They said that the pressure of gas was also very low. They said that despite prolonged gas outages, they received inflated bills.

They said that there was great resentment among people over gas outages and inflated bills. They said that domestic consumers received Rs16,000 to Rs25,000 gas bills for the current month. They chanted slogans against the district administration for not making efforts to restore normal supply of the commodity to domestic consumers.

The protesting women said that Sui Northern Gas Pipelines (SNGPL) had been providing gas three times a day in the morning, noon and evening for the last four months to them. They said that pressure of gas very low. They said that they could not prepare breakfast for their school going children in the morning owing loadshedding of gas.

The district administration sent an additional assistant commissioner to hold talks with the angry protesters. The official assured the protesting women of smooth supply of gas. The protesters dispersed peacefully after getting the assurance. The road remained blocked for more than an hour.

SOURCE: DAWN
 
Inquiry committee confirms overbilling by power firms

A four-member independent inquiry committee on ‘Abject Failure — Illegal Overbilling’ confirmed the power regulator’s overcharging allegations against all the distribution companies (Discos) across the country but absolved them of ‘deliberate and mala fide’ fleecing while shifting some blame on to the then PDM-led coalition government’s decision-making.

All the members of the inquiry committee who have either worked with or still working under the Power Division in different capacities.

In a 37-page report, the committee led by former federal secretary Irfan Ali also blamed the National Electric Power Regulatory Authority (Nepra) for jumping the gun with hasty publication of such ‘extreme allegations’ while simultaneously commending with consensus the regulator’s ‘intent and direction’ saying such questions should have been raised much earlier.

The committee also comprised Dr Fiaz Chaudhry of LUMS’ Energy Institute, Zargham Ishaq of National Engineering Services of Pakistan (Nespak) and Abid Lodhi, a consultant.

The committee interviewed all the stakeholders including key players in all Discos, Nepra and technical resources like Power Information Technology Company (PITC) and Power Planning & Monitoring Company (PPMC) for data collection, examination and collation.

The committee was constituted by the Power Division on the instructions of the Prime Minister’s Office after an investigation by Nepra found massive billing malpractices by all Discos including K-Electric as consumers across the country raised hue and cry over excessive bills in July and August 2023 and turned to streets in protest.

Delayed meter reading

Nepra had concluded that Discos were “charging excessive bills/detection bills to the consumers by adopting illegal and unlawful practices, therefore, prima facie, violated the Nepra Act, Consumer Service Manual (CSM), Terms & Conditions of Tariff and other applicable documents, etc”.

The committee consented with the basic assertion of Nepra that meter reading has to be based on the transparency of reading within a stipulated period and that this accuracy is achieved only when accurate snapshots with reading date are ensured and printed on the electricity bill. “Such is the design of the billing system that any lack of accuracy and delayed reading can and does result in a change of slab or status of the consumers who suffer pecuniary loss,” said the inquiry committee and did not accept the Discos claim that number of affected consumers was not huge. “People are not numbers. All Discos need to address this issue on an immediate basis.”

Without naming the then government, the probe committee said that “an increase in tariff was notified on July 26, 2023 with retrospective effect from July 1” and the majority of consumers had to pay two months’ electricity bill in August 2023. “It resulted in a sudden increase in electricity bills heavily encumbering the common man’s capacity to pay,” it said, adding that trend analysis of the last 32 months for all Discos data showed “a repeating pattern of meter readings going beyond 30 or 31 days. This phenomenon happens almost in all months and is more pronounced in the months when more holidays fall”.

The investigation team did not agree with Nepra’s allegation of deliberate overbilling based on malpractices and mala fide but said clearly it was inefficiency which should be addressed on priority.

All the members of the committee attributed this to extreme weather conditions, general holidays, bifurcation of sub-divisions, shortage of meter reading staff, transportation and up-to-date mobile sets which seemed to have been “ignored” by Nepra.

Financial gains

It asserted that the combined financial gain to all Discos in the said two months was just Rs1.95bn (about 0.22pc) of a Rs902bn billing which meant that the financial imprint of deliberate fraud should have been much larger. It said the reading staff was 31pc short of sanctioned strength as only 10,728 meter readers were working in all the Discos against a sanctioned strength of 15,547, leaving about 4,920 positions vacant.

At the same time, the committee also confirmed that despite an anti-theft and anti-corruption campaign of the power ministry over the past many months throughout the country “electricity theft through sophisticated and unsophisticated means exists in varying quantities in Discos”.

The committee commended only the KE for ensuring maximum transparency in meter readings because of the independent decision-making of its management without any obvious politicisation.

On the question of detection bills and their recovery, the committee again blamed Nepra for generalising failure in recoveries. It said the issue was of serious proportions in Sukkur, Hyderabad and Peshawar-based Discos while the performance of other Discos seemed “satisfactory”.

The report confirmed Nepra’s allegation of delayed meter replacements. The committee said several consumers were subjected to delayed reading and out of those many consumers suffered due to changes in slabs, protected and lifeline categories.

Mepco had the largest group of affected consumers — 40.8pc in July 2023 and 34.7pc in August 2023 of its domestic consumers — thus 53pc contribution came from Mepco followed by 20pc from Gujranwala-Disco.

Interestingly, while exonerating Discos’ managements of mala fide and deliberate overbilling, the committee said the “data at the sub-divisional level does not absolve the sub-divisional tier of certain specific sub-divisions where the variation between the two months are very high”.

It said adequate mechanisms did not exist in the consumer manual to protect domestic consumers in case of reading going beyond 30-31 days and also confirmed that delayed meter replacements created “plausible case of malpractice” and their snap accuracy was suscept to overbilling. Also, the report blamed managements for failing to hire the right number of meter readers and procure adequate mobile sets. On top of that, no Disco had approved modern IT solutions like GIS mapping.

The committee called for performance evaluation of all boards of the Discos as well as managements against key performance indicators relating to loss reduction and consumer satisfaction.

SOURCE: DAWN
 
US Refuses Waiver over Pakistan-Iran Gas Pipeline Project

The Pakistan-Iran gas pipeline project has once again been delayed as the United States has expressed concerns about the project and has flatly refused to waive the sanctions imposed on Iran.

According to well-placed sources, Pakistan requested a waiver from the US on the sanctions imposed on Iran to resume the Pak-Iran gas pipeline project, but the US refused to give any concession. While flatly refusing, the U.S. also expressed its concern about this project.

It should be noted that there is a deadline of March this year to complete Pakistan’s part of the Pak-Iran gas pipeline project, and if Pakistan does not start the project by March, it will have to pay a fine of 18 billion US dollars.



 
US Refuses Waiver over Pakistan-Iran Gas Pipeline Project

The Pakistan-Iran gas pipeline project has once again been delayed as the United States has expressed concerns about the project and has flatly refused to waive the sanctions imposed on Iran.

According to well-placed sources, Pakistan requested a waiver from the US on the sanctions imposed on Iran to resume the Pak-Iran gas pipeline project, but the US refused to give any concession. While flatly refusing, the U.S. also expressed its concern about this project.

It should be noted that there is a deadline of March this year to complete Pakistan’s part of the Pak-Iran gas pipeline project, and if Pakistan does not start the project by March, it will have to pay a fine of 18 billion US dollars.



Better to make your own decision with bravery and go ahead and complete this project. Who is the USA to intervene?
 
Prime Minister Shehbaz Sharif on Monday directed to ensure uninterrupted gas and power supply to the consumers during the holy month of Ramazan, APP reported.

He also directed for provision of every possible facilities to the private sector, and local and foreign investors in the exploration of gas and oil, refining, and distribution of these natural resources.

The prime minister chaired a high-level meeting on the petroleum sector, the PM Office Media Wing said in a press release.

The meeting was attended by Senators Ishaq Dar and Dr Musadik Malik, Sheza Fatima Khawaja, Ahad Khan Cheema, Jahanzeb Khan, Muhammad Aurangzeb, Ali Pervaiz Malik, and relevant senior officers.

Addressing the participants, he said that the government was not meant for doing business rather its responsibility was to extend all kinds of facilities to the private sector and ensure protection of the rights of the consumers especially the vulnerable segments of the society.

He also asked for steps for the promotion of global investment in the exploration of Tight Gas and undersea oil and gas reserves, regretting that Pakistan’s maritime area was huge when compared with Balochistan province but no steps were taken to explore its hidden natural resources.

He stressed upon exploration of undersea natural resources including oil and gas reserves and their full utilization was among the top priorities of the government.

Emphasizing enhancing the petroleum refining capacity of the country, he sought the formulation of a comprehensive strategy to do away with the circular debt of oil and gas sectors and work out a durable solution to the issue.

He also instructed us to reduce the gas sector losses through smart metering and identify and take strict action against the thieves of gas and oil.

"I will not allow any more wastage of the people’s hard-earned money and the loss to the national exchequer,” the prime minister remarked.

He instructed strict monitoring of the LPG sector to ensure the provision of the commodity to consumers at low prices.

Prime Minister Shehbaz directed the relevant authorities to ensure uninterrupted gas supply to the industrial sector, besides ensuring the installation of energy-efficient machinery in the industries.

He also called for encouraging domestic consumers to prefer using electricity instead of gas in their daily lives.

The prime minister also sought an implementation report on the steps taken during the previous tenures for energy conservation, besides emphasizing upon the uplift of administrative infrastructure of the energy sector at par with the international standards.

He called for merit-based appointment of capable persons in the energy sector and sought the presentation of short, mid and long term strategies on the energy sector reforms.

The prime minister also directed for presenting a strategy for the country’s mineral resources, their exploration, and the enhancement of exports.

The meeting was told that the country’s oil and gas reserves were depleting fast and petroleum products worth $4 billion were being exported annually and the local exploration would save foreign exchange worth billions of dollars.

The meeting was also apprised of the reserves of tight gas and undersea oil reserves and the interest of the foreign investors in the sector.

It was told that work on LPG Policy 2024 was underway and consultation with the stakeholders was in progress.

The participants were also briefed about the energy consumption and mineral sector.

The prime minister instructed the relevant authorities to implement the energy sector reforms on a priority basis.

 
Finally, gas will be available. During Imran Khan's tenure we seemed to have forgotten whether there is gas in the country or not.
 
Gas becomes a rarity in Ramazan

Despite provincial governments making promises of uninterrupted gas supply to household users during the month of Ramazan, gas has become a rarity in the Holy Month, which has led to residents relying on liquefied petroleum gas (LPG) cylinders; resultantly, prices for LPG cylinders have increased.

Tired of the government’s false promises, the populace of the country has started relying on LPG gas cylinders to cook meals for sehri and iftar. This increase in demand has led to dealers of LPG cylinders to exploit the situation and overcharge for the cylinders, which has irked the populace.

One such individual is Shaan, who drives a motorcycle for a ride hailing company in Karachi. “A few days ago the price of a cylinder was Rs 200 but ever since Ramazan started the prices have increased to Rs 500,” bemoaned Shaan, who further complained that the price hike had ruined his monthly budgeting.

Concurring with Shaan, Asif Abbasi, another local, expressed his anger at the fact that the government had increased the price of gas manifold and was a silent spectator as the LPG cylinder mafia was busy profiteering.

Just like Karachiites, the residents of Lahore are similarly perturbed. Muhammad Ejaz, a resident of the city, asserted that the government’s assurances of uninterrupted supply of gas during Ramazan were false.

“The gas schedule given by the Sui Northern Gas Company is not being followed, as a result gas is non-existent. Moreover, people have installed illegal gas generators at their homes, which has exacerbated out plight,” regretted Ejaz. Muhammad Umair, whilst agreeing with Ejaz, opined that the government had left the populace to fend for themselves. “Since there is no gas, if we resort to using electricity, the bills are sky-high.

The other alternative is LPG, which has also become exorbitantly expensive now. What should the people do?” Umair’s frustration is shared by Sakina, a housewife, who resides in Peshawar.

“The gas load shedding has made our lives difficult,” she remarked while talking to the Express Tribune. However, it is not just Sakina whose life has become miserable due to the lack of gas supply.

Zahra, another resident of the city, shares her plight. “Gas is sometimes available from 4 in the evening to 7 in the evening and if we are lucky it is also available from 4 in the morning to 7 in the morning.

However, with such a limited time slot, neither can we cook properly, nor can we make breakfast for the children, who are not fasting,” she explained.

“What has made matters worse are the high prices of LPG cylinders. One kilogram of LPG is retailing for Rs 350, which is out of reach for middle class families,” she added.

In light of the plight of the people, the Express Tribune also spoke to the LPG Distributors Association.
“The official price of LPG is Rs 257 per kilogram.

However, it is true that hoarders and profiteers are retailing LPG between Rs 300 and Rs 350,” conceded Irfan Khokhar, Chairman of the LPG Distributors Association of Pakistan. Sikandar Khan, an LPG dealer in Peshawar, also made a similar concession, while talking to the Express Tribune.

“Even though LPG prices have increased, it is true that dealers are engaging in profiteering due to the lack of supply of Sui gas,” said Khan.

Given Khokhar and Khan’s revelations, the Express Tribune inquired from the Spokesperson of the Sui Southern Gas Company, about the lack of uninterrupted gas supply during Ramazan. “We are doing our best to ensure supply of gas during sehri and iftar hours,” maintained the Spokesperson.

SOURCE: EXPRESS TRIBUNE
 
Preparations are underway for the visit of a high-level Iranian delegation to Pakistan in April, citing diplomatic sources, ARY News reported on Monday.

Sources said that the Iranian delegation will comprise of 20 to 25 officials and two to three senior ministers. “Two sides working over the high-level Iranian delegation’s visit to Pakistan”.

“The delegation from Iran is expected to attend inauguration of the Pakistan chapter of the Iran-Pakistan Gas Pipeline,” sources said.
The delegation also expected to sign scores of memoranda of understanding (MoUs) with regard to bilateral trade, energy, security, investment and defence, sources said.

Iranian President Ebrahim Raisi is also expected to visit Pakistan this year.

According to diplomatic sources, Pakistan and Iran free trade agreement has been expected during the visit of President Ebrahim Raisi.

The free trade agreement between the two countries could manifold enhance the volume of mutual trade, sources said.

Iranian President will hold meetings with Pakistan’s political and military leadership during his visit.

The officials of Pakistan and Iran are working over mutual agreements with regard to the visit.

The countries will give preferential tariff and other concessions to their
products, diplomatic sources said.

An inter-ministerial session will be held in Pakistan before the visit.

 
The issue of gas supply will be solved, but what about the skyrocketing rates?
 
Oppression of the already oppressed poor people of Pakistan continues. Yet another hike in gas prices.

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LNG prices raised up to 2.6% for March

The Oil and Gas Regulatory Authority on Wednesday increased the tariff on imported liquefied natural gas up to 2.6% per million British thermal units for the two public gas utilities, namely Sui Northern Gas Pipelines Limited and Sui Southern Gas Company with retrospective effect from March 1, 2024.

In a statement, the regulator said that the increase in monthly re-gasified LNG rates was due to the rise in its cost of supply. Ogra has notified both transmission and distribution prices for the two gas companies. The SNGPL price has been raised by 2.58% per mmBtu on a month-on-month basis for the end-consumers on its network. Ogra has fixed the price at $12.8142 per mmBtu for supplies in March. The price was marginally higher by $0.3220 per mmBtu from February 2024, when the rate was $12.4922.

Similarly, the RLNG price for SSGC has been raised by 0.76% per mmBtu. Now, end-consumers will pay $13.0563 per mmBtu for March, higher by $0.0979 than the price of $12.9584 per mmBtu in the previous month.

SOURCE: EXPRESS TRIBUNE
 
he Federal Minister shared positive news with the consumers that work is underway to provide free electricity to the public up to 300 units, ARY News reported on Monday.

During his visit to the Utility Stores, Federal Housing Minister Riaz Pirzada emphasized that there will be an expansion in tax coverage to include those who previously did not pay taxes. Up to this point, only landlords have been contributing taxes.

He announced that authorities are compiling a list of corrupt government officials, adding that work is underway to provide free electricity to the public up to 300 units.

He further said that Pakistan is now on the path of not begging, they are trying to burn the fire of the nation, and ending inflation is the priority.

He elaborated that Pakistan is now steering away from dependency and striving towards self-sufficiency. The government’s focus is on igniting the spirit of the nation, with a top priority being the alleviation of inflation.

 
PM Shehbaz expresses dismay over gas tariff hike

Prime Minister (PM) Shehbaz Sharif on Monday expressed dismay over the current gas tariff and decided to review the performance of Oil and Gas Regulatory Authority (OGRA) and other companies, ARY News reported.


As per details, PM Shehbaz has ordered the power ministry to complete 16 tasks in one to three months.

The PM directed to present the forensic audit of the recent hike in gas tariff, whereas gas theft, gas infrastructure and unsatisfactory performance report should be presented within three months.

Moreover, the ministry was also asked to form an inter-ministerial commission to monitor the Iran-Pakistan Gas pipeline project.

Earlier, the Sui Southern Gas Company (SSGC) moved the Oil and Gas Regulatory Authority (OGRA) for another gas tariff hike, effective from July 1, 2024.

According to the proposal, SSGC urged the OGRA to jack up gas prices by Rs324 per million British thermal units (mmbtu), aiming to set a new average price of Rs1740.80 per mmbtu.

It is pertinent to mention here that Prime Minister (PM) Shehbaz Sharif directed for ensuring uninterrupted gas and power supply to the consumers during the holy month of Ramadan.

Minister of Energy Dr Musadik Malik also said that the government’s pledge to ensure electricity and gas supply during sehri and iftar times.

The minister said that the current government’s top priority is ensuring the convenience of the people. He reiterated the government is committed to facilitating local and foreign investment in the gas and minerals sector.

 
Pakistan to seek US waiver over Iran gas pipeline

Minister for Petroleum Musadik Malik said that Pakistan would approach the United States to waive the sanctions over the Iran-Pakistan Gas Pipeline project, ARY News reported.

Speaking to media representatives, the petroleum minister said that Pakistan cannot afford the project to be halted, adding that the United States government would be asked to waive off the sanctions from the project.

“We have prepared an exemption petition draft against the US sanctions,” Musadik Malik added. He said that Pakistan will fully present its case on the matter.

The petroleum minister said that Pakistan would use every available political and technological means to avert the sanctions.

Musadik Malik said that Pakistan will start construction on its part of Iran gas pipeline project soon. The caretaker government had approved the 80-kilometre Iran-Pakistan gas pipeline project within the country’s territory.


 
Basically, Pakistan is struggling to meet its energy needs, which means we're dealing with a lot of power outages and shortages, especially when it comes to electricity and natural gas.

I came across some interesting ideas on how to tackle this crisis. We actually need to review things like project designs and costs to make sure everything runs smoothly. Plus, the importance of improving Pakistan's foreign policy and energy diplomacy to attract investment and cooperation from other countries.

Iran has a lot of natural gas that could help us out, and the USA is warning Pakistan not to go ahead with the gas pipeline project with Iran. It's definitely a tough call to make, and Pakistan should focus on the Iran pipeline project as we need to prioritize our own energy needs.
 

SSGC busts massive gas theft network supplying 2,500 houses in Karachi​


Sui Southern Gas Company (SSGC) uncovered a gas theft operation worth millions of rupees in Karachi. A joint raid by SSGC’s Central Revenue Department (CRD) and Central Gas Testing Organization (CGTO) targeted Gul Hasan Town near Sabzi Mandi.

The investigation revealed a network supplying gas to over 2,500 houses by directly stealing from the service line. SSGC teams disconnected all 2,500 illegal connections, effectively dismantling the entire operation. According to SSGC estimates, the gas thieves were stealing a staggering 2,400,000 cubic meters of gas annually, valued at a significant Rs 75,000,000.

SSGC emphasized that gas is a national resource, and theft will not be tolerated. The company vowed to strengthen its crackdown on gas thieves, imposing fines based on the stolen gas volume.

 
Gas deposit discovered in Sindh, 12 lakh 40 thousand cubic feet of gas will be produced from the new deposit. According to the OGDCL spokesperson, 1.24 million cubic feet of gas will be produced from the new gas reserves.

According to OGDCL, 12 lakh 40 thousand standard cubic meters of gas has been found in Sajawal, which will increase the country's gas reserves.

According to the spokesman, Norwest Well No. 1 was drilled up to 2975 meters after which gas was discovered, the gas well is 100% owned by OGDCL, the additional production will significantly reduce the annual domestic import bill. DCL has informed the stock exchange about the gas discovery by writing a letter.

Neo News
 
Whatever amount of gas deposit we discovering in Pakistan are still not enough for domestic and commercial demand, we need gas supply line from Iran on must basis.
 

Notable oil and gas reserves discovered in Sindh's Daharki​


In a significant development that brings relief to the people of Pakistan grappling with a persistent gas shortage, Mari Petroleum Company Limited (MPCL) on Monday announced the discovery of notable oil and gas deposits in Daharki district of Sindh.

The company stated that the Shawal-1 well, drilled in January 2024, reached a total depth of 1,136 metres. The well is yielding 1,040 barrels of oil and 2.5 million cubic feet of natural gas daily.

CEO of MPCL, Faheem Haider considered the success as a milestone for all the geoscientists and engineers who prevailed latest technologies in geo-earth explorations.

This latest success follows MPCL's January 2024 gas discovery in the North Waziristan district of Khyber-Pakhtunkhwa. The Shewa-2 appraisal-cum-exploratory well exhibited a steady flow of gas, sustaining a rate of 0.607 million cubic feet.

Earlier, the country's state-owned petroleum giant, Pakistan Petroleum Limited (PPL), had announced the discovery of substantial natural gas reserves in the Sajawal district of Sindh in November 2023.

According to Express News, the breakthrough came after PPL conducted drilling operations to a depth of 2,545 metres at the Shah Bandar in Jhum East One location.

Preliminary testing revealed promising results, with a wellhead flowing pressure recorded at 13.69 million standard cubic feet and a potential daily production of 236 barrels.

Ongoing drilling, overseen by experts, aims to further investigate and harness the full potential of this newfound resource.

 
The National Electric Power Regulatory Authority (Nepra) on Wednesday authorised ex-Wapda distribution companies (XWDiscos) to levy a Rs2.83 per unit charge in consumers’ electricity bills for May as part of fuel cost adjustment (FCA) charges.

Nepra said the FCA pertains to the month of March.

According to a notification issued by Nepra, a copy of which is available with Dawn.com, the new adjustment “shall be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers”.

The notification added that this adjustment would be shown in consumers’ bills based on units billed in March.

Last month, the government had sought clearance from Nepra to extract about Rs23 billion additional in FCA from consumers for electricity consumed in March despite 79 per cent of power generation coming from cheaper local fuels.

The Central Power Purchasing Agency (CPPA) — a subsidiary of the Power Division — had demanded Rs2.94 per unit additional fuel cost to recover from consumers through May bills.

The proposed additional FCA was almost 46pc higher than the pre-fixed fuel cost of Rs6.44 per unit already charged to consumers in March. This raised questions about the power sector bureaucracy’s capabilities to forecast fuel costs even for six to seven months. In recent months, the additional FCAs have ranged between 50 and 115pc higher than the pre-determined fuel costs notified at the start of the current fiscal year.

This FCA was on top of about a 26pc increase in the annual base tariff and another 10pc hike under the quarterly tariff adjustment currently in place and being charged to consumers at Rs2.75 per unit. As a result, consumers continue to pay excessive bills despite lower consumption patterns. Nepra had accepted the request for a public hearing on April 26.

Source: Dawn News
 
Sindh Minister for Energy Nasir Hussain Shah has said that overbilling and unannounced power load shedding should come to an end

Speaking at the floor of the Sindh Assembly, Sindh’s energy minister said that a meeting has also held with the federal government over the power load shedding.

Minister said that a meeting will be held in Karachi on Friday over complaints against the K-electric.

“We are on the side of the people of the province and taking action according to the procedure. We could not take over the K-electric”, he said.

“I am agreed that an unannounced load shedding being held in several areas,” minister said. He said the chief minister has also taken notice of the load shedding complaints.

“The power utility has assured that load shedding will not be held during examinations,” energy minister said.

Earlier, MQM’s Muhammad Mazahir Amir said that the power load shedding being held in the areas with recovery of bills as high as 85%.

He asked the government to halt K-electric from indulging in power outages during examinations.

 
Pakistan’s electricity shortfall ‘climbs’ to 6,623 MW

According to sources, the major cities are facing up to six hours of load shedding and up to eight hours in rural areas whereas in the areas with high line losses, load shedding of 12 to 14 hours is ongoing.

The country’s electricity demand has reached 25,800 megawatts, while the total electricity production is 19,177 megawatts, according to Power Division sources.

Earlier, an official report of the power ministry stated that the circular debt of Pakistan’s power sector soared to Rs 2,635 billion till January 2024.

According to a report released by the power division, the hike in circular debt continued despite the massive increase in power tariffs and fuel adjustments.

The circular debt increase was recorded at Rs2,310 billion till June 2023, showing an increase of Rs325 billion during the seven months (January 24).

The report stated that poor performance and low recoveries by the DISCOs added to the increase in the circular debt.

It is pertinent to mention here that the International Monetary Fund (IMF) demanded further increase in electricity prices, citing an additional burden of Rs 150 billion on the power sector.

According to sources, the IMF has asked the Ministry of Energy to increase the electricity tariff from Rs5 to Rs7 per unit in July.

 
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