Pakistan seeks IMF nod to sell surplus power to industry, agricultural sector
The once energy-deficient South Asian nation now boasts 7,000 megawatts of surplus electricity that it began generating with Beijing's help under the multibillion-dollar China-Pakistan Economic Corridor (CPEC), a flagship project of President Xi Jinping's Belt and Road Initiative.
'We have been consulting with the IMF for the past six months to approve the scheme,' Leghari told a consultative meeting held in the federal capital Islamabad regarding Pakistan's transition from solar net metering to a net billing system.
The government plans to generate as much as 60 percent of its power from renewable energy sources like solar, wind, hydropower and nuclear energy over the next five years to cut the cash-strapped country's oil import bill.
'There is no direct financial pressure on us [from the IMF],' the minister said, adding the move would balance the nation's supply and demand of electricity, strengthen the power system and benefit consumers.
The Washington-based lender approved a $7 billion loan for Pakistan last year to help support export-led growth and is reviewing the government's budgetary plans for FY26, starting in July.
According to the National Accounts Committee, Pakistan's economy is expected to expand by 2.7 percent during the outgoing FY25 due to lackluster agricultural and industrial performance.
The power minister said the government, since June, has provided cross-subsidies of Rs 174 billion ($617 million) to industries, a measure that brought down industrial tariffs by 31 percent and significantly increased consumption.
Under its ongoing energy reforms, the minister said, the government is considering various proposals, including changing the current solar net metering system into a more effective, transparent and sustainable model.
'The government is not abolishing net metering,' he continued, adding that its scope had expanded so significantly that it was now seriously impacting the national grid, thus requiring timely intervention.
In the fast-solarizing Pakistan, net metering allows consumers to utilize the electricity generated by their in-house solar systems and send the surplus to the national grid at an agreed rate.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
2 hours ago
- Arab News
At least five arrested as Pakistan widens crackdown on illegal currency exchange, transfers
ISLAMABAD: Pakistan's Federal Investigation Agency (FIA) has arrested five suspects involved in illegal currency exchange and transfer of money, the agency said on Sunday, amid a widening crackdown on black market currency traders. The development comes days after the Inter-Services Intelligence (ISI), Pakistan's powerful military-run spy agency, held a meeting in Islamabad with senior officials from currency exchange companies, amid growing concern over the rupee's depreciation, which fell to a 22-month low of Rs284.97 against the US dollar earlier this week. Maj. Gen. Faisal Naseer, a deputy chief of the ISI, chaired the session, according to Malik Bostan, who attended the discussion and is the chairman of the Exchange Companies Association of Pakistan (ECAP), told Arab News. The FIA had begun raiding informal, unregulated money transfer, or 'hundi' and 'hawala,' operators and currency smuggling networks. In a statement on Sunday, the agency said it was tightening the noose around networks involved currency smuggling and had conducted major operations in the southwestern Balochistan province that border Iran and Afghanistan. 'Five suspects involved in hawala, hundi and illegal currency exchange have been arrested,' the FIA said in a statement. 'The suspects were arrested in raids in different areas of Quetta and Chaman.' Pakistan operates a multi-tiered currency market, with rates diverging between the official interbank channel, the open market, and an unregulated 'grey market' where many traders and informal hawala dealers operate. Burdened by over $58 billion in imports in the last fiscal year, Pakistan faces severe inflationary pressure whenever the dollar strengthens. The rupee has lost 2 percent of its value since January, despite Pakistan's current account recording a surplus of $2.1 billion, according to central bank data. During the raids in Balochistan, the FIA said, officials seized 684,000 Pakistani rupees, 230.5 million Iranian rials, more than 135,000 Afghanis, 700 US dollars, 200 Saudi riyals and 150 Australian dollars. 'Cheque books, hawala-hundi receipts and bank deposit slips were also recovered from the suspects,' it said. 'The accused were involved in currency exchange without a license. They could not give a satisfactory answer to the authorities regarding the recovered currency.' The agency said it was further investigating the arrested suspects.
Arab News
6 hours ago
- Arab News
Pakistan suspends road travel to Iran, Iraq citing security concerns
ISLAMABAD: Pakistan's Interior Minister Mohsin Naqvi announced on Sunday that the government will not allow pilgrims to travel to Iran and Iraq by road for the Arbaeen pilgrimage this year, citing public safety and national security concerns for the ban. Thousands of Pakistani citizens visit Iran and Iraq annually for religious tourism and to visit religious sites, including observing Arbaeen (Arabic for 'forty'), a significant religious occasion in Shia Islam. It marks the end of a 40-day mourning period for Imam Hussain, who was 'martyred' in the Battle of Karbala in 680 AD. Travelers to Iran and Iraq by road have often been targeted in sectarian attacks by armed groups in Pakistan's restive southwestern Balochistan province, which shares a border with Iran. Islamabad's decision comes in the wake of a rise in militant attacks in the province by ethnic Baloch militant groups, who demand a greater share of the province's mineral resources from Islamabad. 'After extensive consultations with the Ministry of Foreign Affairs, Balochistan Government, and security agencies, it has been decided that Zaireen will not be allowed to travel to Iraq and Iran by road for Arbaeen this year,' Naqvi wrote on X. After extensive consultations with the Ministry of Foreign Affairs, Balochistan Government, and security agencies, it has been decided that Zaireen will not be allowed to travel to Iraq and Iran by road for Arbaeen this year. This difficult decision was taken in the interest of… — Mohsin Naqvi (@MohsinnaqviC42) July 27, 2025 The interior minister said this 'difficult decision' was taken in the interest of public safety and national security. However, he said Shia pilgrims will be allowed to travel by air to Iran and Iraq. 'Prime Minister Mian Muhammad Shehbaz Sharif has directed authorities to arrange maximum flights to facilitate their pilgrimage in the coming days,' he wrote. A Pakistani immigration official told Arab News earlier this month that Islamabad plans to overhaul its pilgrimage travel policy to Iraq, Iran and Syria after authorities confirmed around 40,000 Pakistani pilgrims went missing or overstayed in the three countries over the past decade. Pakistan's Religious Affairs Minister Sardar Muhammad Yousaf revealed this month that 40,000 Pakistani pilgrims had either overstayed or gone missing in these countries without any official record of their whereabouts. In response, Pakistani authorities have scrapped the long-standing 'Salar system,' in which private group leaders managed travel logistics, and are introducing a new centralized, computerized structure to track and regulate pilgrim movement more effectively. Mustafa Jamal Kazi, Pakistan's director general of Immigration and Passports, said a new Ziyarat Management Policy has been finalized by the government under which pilgrims will only be allowed to travel in organized groups, and licensed tour operators will be held directly responsible for ensuring that all group members return to Pakistan before their visas expire. Any operator found violating the policy or failing to ensure the return of all pilgrims will have their license canceled.
Arab News
8 hours ago
- Arab News
Saudi and Syrian business leaders commit to energy sector revival
RIYADH: Saudi and Syrian business leaders affirmed their readiness to support the redevelopment of Syria's energy infrastructure following a high-level meeting in Riyadh. The participants presented proposals for joint projects focused on conventional and renewable energy sectors, signaling a potential shift toward greater regional investment collaboration. During the meeting, which included members of the Syrian expatriate community and Saudi business executives, Syrian Minister of Energy Mohammed Al-Bashir outlined the ministry's recent achievements and its strategic direction despite prevailing challenges, the Syrian Arab News Agency reported. He said economic partnerships and investor engagement are essential to advancing the energy sector and welcomed collaborative initiatives aimed at bolstering development efforts. The talks coincide with a broader renewal of Saudi-Syrian relations, underlined by the July Syrian-Saudi Investment Forum held in Damascus. In a follow-up to that momentum, business leaders at the recent Riyadh meeting 'affirmed their readiness to help rebuild infrastructure and expand investment opportunities in both conventional and renewable energy,' according to the report by SANA. The forum united over 120 investors and executives from the Kingdom's public and private sectors and witnessed the signing of 47 agreements and memoranda of understanding valued at SR24 billion ($6.4 billion). The conference also marked a significant deepening of bilateral cooperation across various sectors, including energy, real estate, infrastructure, telecommunications, and finance. The recent meeting builds on the SR11 billion in infrastructure commitments made during the forum, notably the inauguration of the Fayhaa White Cement Factory in Adra Industrial City. The plant, backed by a $20 million investment from Northern Region Cement Co., is the first of its kind in Syria and is projected to create over 1,100 direct and indirect jobs. Additional agreements worth SR4 billion targeted the telecommunications sector, while cooperation in agriculture, financial services, health care, education, and IT were also highlighted. The forum's economic significance builds upon recent diplomatic and financial milestones. Saudi Arabia officially reopened its embassy in Damascus in 2024 after a 12-year hiatus. In April, the Kingdom, in coordination with Qatar, settled Syria's $15 million debt to the World Bank, enabling access to multilateral funding for redevelopment. Syrian and Saudi officials emphasized the historical and cultural ties between the two nations, framing the forum as a key moment in rebuilding economic cooperation. Syrian Economy Minister Mohammad Al-Shaar described the event as a 'historic milestone,' while Saudi Minister of Investment Khalid Al-Falih underscored the Kingdom's long-term commitment to supporting Syria's path to recovery and sustainable growth.
