EpaperLHR_2020-08-15

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Saturday, 15 August, 2020 I 24 Dhul-Hijjah, 1441 I Rs 15.00 I Vol XI No 46 I 12 Pages I Lahore Edition

new deal signed with iPPs to Cut Cost of Power generation: PM g

Imran says he wIll soon announce a package that wIll help tackle Issues of lIne losses & theft, anD focus on ImprovIng the DIstrIbutIon system

ISLAMABAD

P

AhmAd AhmAdAni

rIme minister Imran khan said on friday that the government has signed a new agreement with the independent power producers (Ipps) under which the cost of electricity generation would be brought down and circular debt would be reduced. “I congratulate the nation because we are fixing the damaging structure we inherited in our power sector,” he said in a series of tweets. the prime minister promised that he would soon introduce a package that would focus on improving the distribution system by tackling line losses and theft. “Quaid-e-azam wanted an Islamic welfare state and we are embarked on a journey towards that goal,” the pm remarked. he also mentioned an upturn in the country’s economy after two years of struggle, highlighting that the current account and fiscal deficits were down. listing the policies that the government consider as a success, the prime minister

said that the construction industry was taking off due to the special incentives offered by the government. “the stock market, exports, revenue collection as well as cement and car sales were up,” the pm claimed. he also congratulated the nation on successfully tackling coronavirus, highlighting the government’s efforts for the protection of the poor through cash support and smart lockdowns. however, the pm warned that the challenges were still there as the virus had not been eliminated completely. he urged the people to follow the standard operating procedures (sops) to further curb the spread. DETAILS OF AGREEMENT: meanwhile, sources confirmed this scribe that the government and Ipps on thursday had finally reached an understanding on reduction in the rate of return on equity and late payment surcharge (lps), and sharing of savings on account of plant efficiencies. a memorandum of understanding (mou) containing 13 points has been signed between the two parties.

Coronavirus in

Pakistan

CONFIRMED CASES:

287,300

LAST UPDATED AT 10:12 AM ON AUGUST 14, 2020 DAY'S DEATH TOLL: NEW CASES:

14

626

RECOVERED:

DEATHS:

SINDH:

PUNJAB:

265,215 6,153

125,289

94,993

KP:

BALOCHISTAN:

AJK/GB:

ISLAMABAD:

35,021

12,062

2,167/2,426 15,342

“the Ipps which were set up under the 2002 power policy have now agreed to alter their existing contractual agreements and to ink new power purchase agreements,” an insider said. once nepra, federal cabinet and Ipps’ board of Directors approve this mou, the documents and procedures of these understandings would be completed preferably within 30 days, after which the same will be submitted to nepra and central power purchasing agency (cppa) to be followed by legal documentation to reflect the amendments needed in the relevant agreements. sources said this mou is valid for six months and it will stand terminated on the signing of the detailed agreement. according to the mou, the two parties have, in the larger national interest, voluntarily agreed to provide concessions considering the fact that a significant period has been passed since its commercial operation Date (coD). It was agreed that all projects will convert their contracts to take-and-pay basis and until then, the existing take-or-pay will continue. the return on equity (roe) including return on equity During construction (roeDc) for local investor will be changed to 17pc per annum in rupee terms without dollar indexation, while for foreign investors registered with the state bank of pakistan, roe will be 12pc per annum on nepra approved equity at coD. similarly, any saving in fuel for oil-fired projects would be shared on a sliding scale starting from 70:30 in favour of the power purchaser for the first 0.5pc efficiency improvement while any future savings in o&m of oil-fired projects will be shared 50:50 after accounting for any reserve for major overhauling which would be by power purchaser or nepra as mutually agreed and the power purchaser will not share in any efficiency losses.

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Imran strikes a note of optimism in Independence Day address to nation ISLAMABAD STAFF REPORT

prime minister Imran khan on friday said that the past two years were difficult for the government as “we did not have foreign exchange and could not pay our debts”, but things were now “improving”. In a televised address to the nation on Independence Day, the premier said, “we have avoided a huge crisis because we did not default [on payments]. but I know it has not been easy for the people, I understand the difficulties they faced and still are facing.” however, the economy has improved, the premier said, adding that the stock market trends indicate the confidence of investors and business community in the economy. he attributed the improvement in the economy to the boom in the construction sector which led to jobs and wealth creation. “Despite the pandemic, our tax collection in June exceeded our targets,” he said, adding that exports have gone up, despite the coronavirus crisis that has wreaked havoc on global economy. he also congratulated the nation for coming together and “fighting against the coronavirus” and said, “hardly any other nation

Nation celebrates Independence Day with zeal, fervour ISLAMABAD TLTP

pakistan celebrated Independence Day on friday with traditional zeal and fervour, renewing a pledge to work with the spirit of the pakistan movement to make the country a true Islamic welfare state. special prayers were offered for the security and progress of pakistan and the well-being of the people. the national flag was hoisted at all important public and private buildings. the main feature of the celebrations was the national flag hoisting ceremonies at president house, Islamabad, and provincial, divisional, and district headquarters throughout the country. public and private buildings, as well as streets, bazaars, and markets, were profusely illuminated and decorated with national flags, portraits of founding fathers, and posters. In lahore, a special ceremony was held in connection with Independence Day at hazoori bagh where punjab chief minister usman buzdar hoisted the national flag. the day dawned with a 21-gun salute in the provincial metropolis followed by a graceful change of

was able to successfully balance” between economy and the virus. he pointed out that the number of confirmed coronavirus cases had reduced and economy had started an upward journey as well. “this does not mean we have won this battle,” he cautioned and urged people to continue taking precautions, the most important and basic of which is to wear a mask while leaving the house. the prime minister also told the nation that the government had reached an agreement with independent power producers which would lead to a reduction in the cost of electricity production, thus reducing tariffs. he said that pakistan’s industries could not compete with other nations of the subcontinent like India and bangladesh as the cost of production in the two countries was low due to cheap electricity. pakistan, meanwhile, is facing a huge circular debt because the tariffs were less than the cost of generating electricity, which was high. he also announced that a reform package will also be introduced in the coming days in order to improve the distribution network in the country by reducing line losses and curbing power theft.

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more inside

Pakistan, Palestine, Iran, Turkey denounce UAE-Israel deal STORY ON BACK PAGE

guard ceremony at mazar-eIqbal. a smartly turned out contingent of pakistan army assumed the guard duties at the mazar-e-Iqbal. In karachi, the main event of a change of guard ceremony took place at the mausoleum of Quaid-e-azam mohammad ali Jinnah. a smartly turned out contingent includes 64 cadets of pakistan navy who assume the honorary guard duties. sindh governor Imran Ismail, sindh chief minister syed murad ali shah, cabinet members, and other high ranking officials attended the ceremony. the celebrations ended in the provincial capital with 21 gun-salutes while special prayers

were offered at mosques for the country’s safety, prosperity, and development. In khyber pakhtunkhwa (kp), the main function in connection with 73rd Independence Day was held at police lines, peshawar. chief minister mahmood khan hoisted the national flag at the ceremony. collective prayers were made for the development and prosperity of the country and the liberation of Indian occupied kashmir (Iok). flag hoisting ceremonies were also held at divisional and district administration offices across the province. earlier in the morning, twenty-one gun salutes were fired in peshawar to mark Independence Day.

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president pays tribute to nation for surmounting challenges STORY ON PAGE 03

Pakistan confers Nishan-e-Pakistan on Syed Ali Gilani STORY ON PAGE 03

afghanistan govt begins to release taliban prisoners ahead of peace talks STORY ON BACK PAGE


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