Category: 1. Pakistan

Lahore: Punjab Chief Minister Maryam Nawaz Sharif has directed the authorities concerned to launch a grand operation to protect passenger aircrafts within Lahore’s limits, and mobilized District Administration, Wildlife and Environment Protection Authority for the purpose.

She directed the Senior Provincial Minister Marriyum Aurangzeb to mobilize Punjab’s first Wildlife Force, and decided to dismantle illegal slaughterhouses and poultry farms near airports. She also directed the relevant authorities to strictly implement laws and regulations for garbage disposal of bakeries near airports, and said, “There will be a ban on doing any kind of business near airports that may create a risk of birds gathering.”

In this regard; Punjab government has issued an order, which says, “Poultry farms, bakeries and slaughterhouses established without environmental protection arrangements will be banned.”

The notification added, “Strict application of environmental regulations will be ensured for companies that manufacture leather and leather products, besides a ban on open skinning of animal hides. Moreover, there will be a complete ban on throwing garbage near airports, making the use of lidded garbage bins mandatory.”

Wildlife Headquarters has also issued an order directing Wildlife Rangers to start operations immediately.

The CM said, “Lahore Eastern Bypass, Manawan Hospital Dahoriwala, PKLI, Chungi Amar Sidhu, Ichhra Lal, and Chah Miran areas have been declared ‘No-Bird Zone,’ operation will start from these areas. The notification of Punjab government says, “All such reasons should be eliminated due to which flocks of birds gather near airports.”

It adds, “Grain on the roofs of houses, pigeon breeding, pigeon flying in large numbers, feeding of pigeons in temples and public places and excessive gathering of birds should be prevented.”

The notification highlights, “Wildlife Rangers, district administration and related agencies will take action as per Punjab Wildlife Act in case of violation.”

The notification says, “Bird collisions with aircraft during take-off, landing and low-altitude flight of aircraft cause accidents.”

It points out, “According to the International Civil Aviation Organization (ICAO) and the International Air Transport Association (IATA), more than 90% of accidents occur at altitudes below 3,000 feet.”

The notification emphasised, “Punjab Wildlife Act should be strictly implemented, arrests, punishments and fines will be imposed for violations.”

Senior Provincial Minister Marriyum Aurangzeb said, “These measures are being taken to ensure safe air travel and safety of hundreds of human lives.”

She added, “Air safety fencing will reduce bird strikes and accidents.”

Copyright Business Recorder, 2025

LARKANA: A teenage rape victim, who was admitted to the trauma centre in Larkana after being assaulted, died during treatment on Sunday.

A maternal uncle of the victim told reporters that she was intellectually disabled and had been missing since Friday.

Larkana police also claimed to have gunned down one of the rape suspects in an encounter.

Police officials claimed the killed suspect was a key character in the rape case. A pistol was also found in his possession, they added.

During the encounter at Selra bypass in Ratodero, other associates of the suspect escaped and police were searching them out, said a press release issued from the SSP office.

Larkana SSP had recommended rewards for the police party involved in the encounter. Police had also released a photograph of the suspect showing the pistol lying near his dead body, he said.

On July 12, an FIR (No.122/2025) was registered with Ratodero police station on the complaint of Aamir, a close relative of the suspect, under Sections 276/2 and 377-B of PPC against the killed suspect and his alleged associate for sexual assault on the girl.

Ratodero police on Saturday picked up the suspect on charges of sexually assaulting the 15-year-old girl and began probe into the incident, after the SSP Larkana took notice of the incident.

The SSP sought report from the police station concerned about the incident, said the SSP spokesman.

The victim, a resident of Ratodero, was found unconsciousness in local stadium. She was shifted to the Taluka Hospital Ratodero where she was medically examined and later transported to the Chandka Medical College Hospital, he said.

“We searched for her but could not trace her out,” her uncle said, adding that police were also informed about the missing girl. On Saturday, people residing near the stadium informed them about her whereabouts and she was later shifted to the taluka hospital, he said.

Published in Dawn, July 14th, 2025

LAHORE: The government has launched a grand operation to ensure the safety of aircraft in and around Lahore, aiming to prevent bird strikes that pose a threat to aviation.

The district administration, wildlife department and the Environment Protection Authority have been mobilised to implement strict measures in this respect. A key decision involves establishing ‘No Bird Zones’ through ‘ring fencing’ (creating an aerial safety perimeter)in various areas of Lahore.

Chief Minister Maryam had specifically instructed Senior Minister Marriyum Aurangzeb, who also holds portfolio of environment protection, climate change and wildlife minister, to activate Punjab’s first-ever ‘Wildlife Force’ to spearhead these efforts.

A series of stringent actions will be enforced to eliminate factors attracting birds near the airport, including closure of unlicensed slaughterhouses and poultry farms operating near airports, enforcing a strict compliance of waste disposal regulations for bakeries near airports, prohibiting any businessactivity near airports that poses a risk of bird congregation, banning poultry farms, bakeries, and slaughterhouses operating without proper environmental safeguards.

Tanning and leather goods manufacturing companies will face strict enforcement of environmental regulations, with an immediate ban on open-air animal hide processing.

Scattering grains on rooftops, shrines, pigeon fancying to be banned in these zones

The dumping of garbage near airports is completely prohibited and the use of covered dustbins has been made mandatory. The wildlife rangers have received immediate orders to commence operations. Some areas, including Lahore Eastern Bypass, Manawan Hospital Dahoori Wala, PKLI, Chungi Amar Sidhu, Ichhra, and Chah Miran, have been declared ‘No Bird Zones’ and operations will begin from these locations.

The Punjab government’s notification emphasizes eliminating all reasons for large flocks of birds gathering near the airports. This includes banning the scattering of grains on rooftops and in public places, including shrines, prohibiting the rearing of pigeons and large-scale pigeon flying, and taking measures to prevent excessive bird gatherings.

The government says that Wildlife Rangers, district administration, and other relevant departments will take action against violations in accordance with the Punjab Wildlife Act. This includes potential arrests, penalties, and fines.

“Bird strikes during aircraft take-off and landing, as well as low-altitude flights are a major cause of accidents,” states the Punjab government’s notification.

It highlights that according to the International Civil Aviation Organisation (ICAO) and the International Air Transport Association (IATA), over 90pc of bird strike incidents occur below 3,000 feet.

Marriyum Aurangzeb termed these measures crucial for ensuring safe air travel and protecting hundreds of human lives.

Published in Dawn, July 14th, 2025

• Rescue 1122 response faced nearly 40-minute delay; district emergency officer was AWOL, man recruited as diver was ‘afraid of water’
• Flood protection wall found encroaching on river bed, gave tourists ‘false sense of security’
• Provincial Inspection Team advocates inquiries over illegal constructions in Swat since 2010

PESHAWAR: It was a race against time: every second, every minute counted as the lives of over a dozen tourists stranded in the midst of a raging deluge hung by a thread.

“The window of time was narrow”, noted the three-member inquiry committee in its report on the tragic drowning of thirteen vacationers at Khwazakhela, Swat.

What unfolded subsequently was a tragedy of unspeakable proportions, with men, women and children being swept away by raging waters as onlookers watched helplessly from the riverbank.

The committee’s report presents a detailed, minute-by-minute account of the incident, incorporating statements from officials, eyewitnesses, and survivors, as well as contents of WhatsApp messages exchanged during the crisis.

Based on the efforts by the Provincial Inspection Team (PIT) to uncover the facts behind the tragedy of June 27, the provincial government released a statement summarising the committee’s findings. However, the devil lies in the details.

The 63-page report reveals systematic failure, the highest levels of incompetence, inefficiency, criminal negligence and even land grabbing, that led to the loss of precious human lives. In hindsight, had the appropriate systems been in place, those poor souls might have been saved.

The report noted with concern “deeply embedded failures in disaster preparedness, regulatory enforcement, institutional oversight and emergency response mechanisms.”

Failures

Rescue 1122 emerges as the primary accused in this tragic incident: the district emergency officer was absent from duty and had left the station without prior approval, leaving an operational vacuum.

Furthermore, two individuals recru­ited as drivers were informally performing the duties of divers. In a shocking revelation, pointing to politically-motivated recruitments in this critical life-saving department, one of the divers was said to be afraid of water.

“Recruitment practices appear to be flawed, with non-technical individuals appoi­nted to specialised roles. One such individual, reportedly hydrophobic, was appointed as a diver”, the report noted.

One driver failed to report for duty on that eventful day, but was still marked present, while the other did not show up at all.

The water rescue vehicle and ambulance were dispatched without a diver. Only after realising the gravity of the situation did the ambulance leave the site to pick up one of the “divers” — who was actually a driver.

The staff also discovered the rope was too short and that they didn’t have the throw-gun, life jackets and floatation equipment.

In a crisis where every minute was counted, 38 minutes were wasted back and forth to pick up divers and arrange jaala (net) and a local rubber boat, which took another six minutes to assemble and move about a kilometre upstream for launch.

The call recording system at the Rescue-1122 in Swat, had been “deliberately” turned off. The official in charge claimed it was done on orders from his senior, to protect equipment from lightning and thunderstorms. However, the committee said it was done to avoid any post-event accountability.

The Early Warning System was also not functional, while the official responsible for recording the river flow levels delayed reporting by four hours – during which the water flow surged from 6,738 cusecs to a staggering 77,782 cusecs.

The secretary of the irrigation department informed the committee that out of the 131 gauges installed throughout the province, only 22 were equipped with a telemetry system.

Shockingly, the telemetry gauges at Khwazakhela and Shamozai — both critical for flood forecasting — were found non-functional at the time of the tragic incident.

Encroachment

The committee also detailed gross negligence on the part of a major contractor working on an Asian Development Bank-funded Emergency Flood Assistance Project (EFAP). The contractor had constructed a bund roughly 200 feet upstream from the site of the tragedy.

This temporary diversion gave tourists the false impression that the area was outside the active river channel — which it was not.

“The bund was raised using loose riverbed material during peak monsoon season in blatant violation of basic engineering norms and safety protocols. No safety signage, barriers, or cordoning were installed at construction site.”

Further, the flood protection wall was found to encroach deep into the riverbed, narrowing the river’s natural flow. The committee cited locals claiming, this appeared to a deliberate attempt to grab precious land.

The wall spanned approximately 850 meters. If it intruded even 100 feet into the riverbed, the reclaimed area would equal about 278,880 square feet. At the prevailing market rate of Rs20,000 per square foot, this translates into an estimated Rs5.57 billion worth of potentially commercial land.

The committee found that the land revenue records had been altered and pages changed.

“The sheer scale of financial incentive, coupled with a clear violation of zoning regulations and river protection ordinances, raises serious concerns about speculative land encroachment under the guise of public infrastructure,” the report stated.

The committee apportioned the blame of illegal encroachment on the district administration and the Tehsil Municipal Administration for ignoring and facilitating regularisation of illegal structures since 2010.

Administration

The committee further said the district administration failed to initiate or coordinate rescue efforts, while the police did not take timely action to keep tourists away from the river.

The tourism department, too, was found to be entirely absent. It failed to regulate or manage tourist safety, did not licence hotels as required, and its helpline remained unknown and unused.

The hotel, which was used by the tourists to access the river, the committee said, was constructed in clear violation by encroaching on the riverbed without No Objection Certificate (NOC) or approved building plan.

While recommending a slew of recommendations to introduce regulatory and legislative framework to overcome judicial restraint, arrest illegal encroachment, mining and overcome institutional weaknesses and lapses, the committee also called for inquiry against all DCs in Swat and TMA officers posted in Babuzai since 2010 and other officers.

A detailed audit and investigation of the EFAP was also proposed to determine whether the project’s design was feasible and whether it encroached upon the riverbed. An inquiry, it said, might also be conducted into the non-functioning of the early warning system in Swat district.

Published in Dawn, July 14th, 2025

• No plan given for Imran-announced protest; workers ask if 90-day plan has replaced Aug 5 movement
• KP CM claims party will decide after three months ‘whether to continue with politics’
• Days after founder eschewed talks, Gandapur claims Imran ready to sit with powers that be

LAHORE: Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur seemed to throw a wrench in the works of a nationwide protest, annou­nced by PTI founder Imran Khan, which is expected to climax on Aug 5, marking two years of the former PM’s imprisonment.

At a press conference on Sunday, where party leaders were expected to announce the plan for this protest, CM Gandapur caused confusion when he came up with a new 90-day timeline for what he called ‘a final push’.

Flanked by PTI leaders who had arrived in Lahore to launch their movement for the release of Imran Khan and his spouse, CM Gandapur said that the 90-day countdown had already begun.

However, the mixed messages left party workers questioning whether this meant a postponement of the Aug 5 protest plan, or something else altogether.

At the press conference, the KP CM appeared to surprise even his party colleagues when he said, “The protest campaign had started last night and would reach its crescendo in 90 days for a final showdown”.

The KP CM did not mention any date, but when quizzed by reporters, he reiterated the party’s position that the protest campaign would be taken to its peak by Aug 5 using political means.

“We have to decide within 90 days whether we should even do politics in this country… if [political means] do not lead to a result, then we will let you know about our plan of action that will come forward,” he said, adding that he had given himself three months to prepare for the protest.

“We will either do or die,” the KP CM said, adding there was no use of politics in the country as “there is no politics”.

Dissent from Aliya

PTI Punjab chief organiser Aliya Hamza Malik was conspicuous by her absence from the presser. While PTI Secretary General Salman Akram Raja explained that she was “busy”, Ms Malik questioned this claim in a subsequent tweet.

“What strategy has been announced for the release of Imran Khan, how and where the protest campaign will begin? Who replaced the Aug 5 plan with 90 days?”

“I myself do not know where I was busy for the past two days,” she said, in a jibe at Mr Raja.

Some PTI workers also said that it appeared as if the party had let them off the hook for the Aug 5 protest. Some voices also questioned why the party leadership had yet to announce a proper plan for the movement, given that Aug 5 was just a few weeks away, and wondered whether this meant the protest plan had been postponed.

‘Door open for talks’

Even though the idea of dialogue was shunned in a tweet from Imran Khan’s official X account last week, the KP chief minister, apparently on behalf of the former premier, once again offered the military establishment to engage in dialogue with the party.

“Now we are giving an open offer (to the establishment) to hold dialogue with us or we will get to ‘tread on our own path’ with clear timeline and targets”.

He also criticised the powers that be for indulging in politics. Reiterating that the establishment had hijacked the system, the KP CM said the PTI would hold dialogue with the powers that be and went on to add that “they can let the (puppet) politicians sit beside them”.

“We no longer want to waste time talking to the ruling politicians, who carry no power to make a decision,” he added.

While the PTI has consistently been demanding talks with the establishment, these overtures have not received a positive response from the concerned quarters thus far.

The KP CM also blamed state institutions for a spike in terrorism in Balochistan and KP.

“When it is asked about making and breaking governments, it simply says the institution is apolitical,” he quipped, while asking the establishment to accept its mistakes and rectify them. He said the army was earning a ‘bad reputation’, and asked where it wanted to take the country.

Published in Dawn, July 14th, 2025

KARACHI: The PTI has formally expelled its five MNAs for voting in favour of the 26th Consti­tutional Amendment last August, according to a Dawn.com report.

The Constitution (Twe­nty-Sixth Amendment) Act, 2024, also known as the ‘Constitutional Pack­age’, is legislation that takes away the Supreme Court’s suo motu powers, sets the chief justice of Pakistan’s (CJP) term at three years and empowers the prime min­ister to appoint the next CJP from among the three most senior Supreme Court judges.

The party, last October, decided to take legal action against its lawmakers, who had voted in favour of the 26th Ame­ndment in violation of the party’s policy.

Expulsion notices, dated July 12, were issued to MNAs Aurangzeb Khan Khichi (NA-159, Vehari IV), Muha­mmad Ilyas Choudhry (NA-62, Gujrat I), Usman Ali (NA-142, Sahiwal II), Mubarak Zeb Khan (NA-8, Bajaur) and Zahoor Hussain Qureshi (NA-146, Khanewal III).

During the PTI’s parliamentary party meeting held on Sept 2, 2024 in Islamabad, “it was unanimously resolved that the PTI parliamentary party will not support the proposed amendments to the Constitution and will oppose the bill when it is moved in the National Assembly or is put to voting at any stage”, the notice read.

“You voted in favour of the bill and, therefore, you violated the directions and instructions of the PTI parliamentary party that were binding on you as a parliamentarian, especially when you had won the election with support of the PTI and had taken oath that you would follow instructions of the PTI and that you would stand loyal to the party,” it added.

The document recalled that show-cause notices were issued to the five MNAs in November to prove that they had not “defected” from the party, but they did not respond.

Moreover, personal hearings were held for the MNAs, but they did not offer any explanation or defence, the notice said.

Two of the notices, addressed to Mr Khichi and Mr Zeb, noted that they had defected and joined the PML-N. The remaining three notices took note of the fact that the recipients were sitting on treasury benches and “attended meetings of that (ruling) party”.

“Thus, you having voted in favour of the 26th Constitutional (Amen­dment) Act, 2024, have violated the party’s instructions and directions which were binding on you,” the notice read.

“Therefore, you are hereby declared to have violated your commitment, oath and loyalty to the party. You have acted contrary to the instructions of the party … and joined another parliamentary party in the National Assembly. You are therefore expelled from the party (PTI) forthwith. Needless to add that you also stand disqualified on account of the aforesaid conduct,” it added.

Published in Dawn, July 14th, 2025

QUETTA: The business leaders of Quetta have warned of protests if the government didn’t roll back new taxes and FBR’s powers to arrest alleged tax evaders.

In a meeting on Saturday, business leaders from Balochistan’s provincial capital and the Quetta Chamber of Commerce and Industry (QCCI) members said the new measures were a “death warrant” as they would stifle businesses.

They warned of a province-wide protest movement if the government didn’t withdraw these “anti-business provisions”.

The QCCI patron-in-chief, Haji Ghulam Farooq Khilji, strongly criticised the recent federal budget and rejected the new taxes and FBR powers.

Mr Khilji said the sweeping authority granted to FBR officials under Section 37A of the Sales Tax Act will allow tax officers to arrest CEOs and directors “merely on suspicion” of tax frauds and penalise non-filers for transactions above Rs200,000. He called these measures “oppressive” for the business community, particularly in Balochistan.

Published in Dawn, July 14th, 2025

ISLAMABAD: A recent province-wide survey by Gallup Pakistan reveals widespread public dissatisfaction in Khyber Pakhtunkhwa (KP) with governance, public services, economic opportunities and accountability.

Conducted between February and March 2025 with 3,000 respondents, the survey highlights deep frustrations just months after the formation of a new PTI-led provincial government.

While 74 percent report no access to clean drinking water and education, access to healthcare is low at 63 percent. In rural and southern KP, services fare even worse. Gas is unavailable to 66 percent, and 49 percent face poor or no electricity. Youth facilities are severely lacking, with most areas reporting no access to parks, libraries, or community centers.

Although, PTI’s previous term saw improvements in roads and transport, fewer than half of respondents see new projects since the 2024 elections. Notably, 49 percent of PTI voters say no recent development has taken place in their area.

Over half of those surveyed believe development funds were misused, and 71 percent support investigations into corruption—even among PTI loyalists. Nearly half of them also say corruption in government departments has increased.

Rising unemployment (59 percent) and lack of opportunity (67 percent) top economic concerns. Most respondents are unaware of government economic programmes, and 73 percent believe hiring is based on personal connections rather than merit.

While 58 percent are satisfied with security, 57 percent — especially in South KP — still fear terrorism. The formal justice system is seen as slow and corrupt, leading 84 percent of those aware of jirgas to prefer traditional mechanisms.

The Sehat Card health programme earns high praise (83 percent approval), but only 38 percent think Chief Minister Ali Amin Gandapur is outperforming his predecessors. Nearly half (47 percent) would prefer Imran Khan in the role.

A strong 85 percent of respondents want better cooperation between KP and the federal government, despite the province’s confrontational stance. Sixty percent believe the government has focused too much on protests over governance.

The Gallup survey signals growing public disillusionment in KP. While some programmes remain popular, the demand for jobs, accountability, and better governance is loud and clear — even from PTI’s own base. The province faces a critical moment that could shape its political and developmental trajectory.

ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Ministry of Commerce to set specific targets, along with a clear mechanism and milestones, to progress toward achieving the longstanding goal of $5 billion in annual bilateral trade with Turkiye, well-informed sources told Business Recorder.

Despite repeated commitments at the highest levels to increase trade, progress has remained limited— even though the Trade in Goods Agreement between Pakistan and Turkiye has been in effect since May 1, 2023.

Under this agreement, Pakistan has secured preferential access to the Turkish market across 261 tariff lines, covering both traditional and non-traditional sectors such as leather, rice, dates, mangoes, cutlery, sports goods, seafood, processed agricultural products, rubber tubes and tyres, plastics, and engineering goods.

Pakistan, Turkiye reaffirm commitment to boost ties, target $5 billion trade volume

In return, Turkiye has been granted concessions on 130 tariff lines, including items such as black tea, processed food products and flavourings, industrial raw materials, machinery parts, and electronic equipment components.

Both countries have set a strategic medium-term goal of enhancing bilateral trade to $5 billion, as part of their broader economic partnership. A key step in this direction was the Framework Agreement for Establishing a Free Trade Area, signed on March 22, 2016, expressing mutual commitment to gradually liberalise trade in goods.

Pakistan had undertaken extensive negotiations on the Trade in Goods Agreement in consultation with public and private stakeholders. The agreement represented a major breakthrough in Pakistan-Turkiye economic relations and was a central focus during Prime Minister Shehbaz Sharif’s visit to Turkiye from May 31 to June 2, 2022.

On July 7, 2025, during a meeting to review bilateral ties with Turkiye, the Prime Minister issued a series of decisions and directives to relevant ministries and departments.

Ministry of Commerce and Ministry of Economic Affairs have been directed to propose date of next Joint Ministerial Commission meeting in August 2025 instead of September 8-9, 2025. Ministry of Defence (Aviation Division) will arrange a small meeting to discuss outsourcing of airports to Turkish firm.

Pakistan’s Ambassador in Ankara to follow up PM’s discussion with Turkish President regarding to G2G agreement with regard to world-class Turkish Consultant firm for Jinnah Medical Complex and Danish University. He would also pursue cooperation of ship-breaking industry with the Turkish firms.

Petroleum Minister Ali Pervaiz Malik has been directed to follow up with a Turkish company on both offshore and onshore exploration in Pakistan.

Prime Minister has directed Ministry of Railways to continue active follow up with Turkish side on the Istanbul-Tehran-Islamabad Railway Project.

Azad Jammu and Kashmir Government has to allot at least 20 acres of land to MAARIF Foundation preferably in Muzaffarabad or in Mirpur if acceptable to Turkish side.

Ambassador of Pakistan in Ankara has to pursue with Turkish firms GIB for a G2G arrangement with FBR and developing a digitised cargo Tracking System. Advisor to PM has to send a letter to Ambassador in this regard.

Pakistan National Shipping Corporation will give a presentation to the Prime Minister by National Logistic Cell (NLC) after Deputy Prime Minister has seen it.

Copyright Business Recorder, 2025

The much-hyped plan to reduce Pakistan’s power sector circular debt by a staggering Rs1.3 trillion has hit an all-too-predictable obstacle: Chinese independent power producers (IPPs) are balking at waiving late payment surcharges (LPS), a linchpin of the scheme. This setback — far from surprising — exposes the fragility of a strategy that mistook financial reshuffling for structural reform.

Despite the optimism of stock market speculators and government cheerleaders, the plan’s collapse was foreseeable. It is now back to square one, leaving Pakistan’s energy sector mired in its perennial quagmire.

The circular debt — a complex web of unpaid obligations across the energy supply chain — cannot be tamed by merely shifting liabilities from one balance sheet to another. Such manoeuvres amount to little more than Excel-sheet sleight of hand, side-stepping the root causes: one-sided contracts, inefficiencies in distribution companies, and persistent grid anomalies. These are not financial puzzles to be solved with clever accounting or price adjustments; they are technical and engineering challenges demanding rigorous, ground-level solutions. Imagine trying to fix a crumbling building by tweaking its blueprint on a spreadsheet — absurd, yet this is precisely the approach successive administrations have taken.

The energy sector’s woes extend beyond electricity to the intertwined dynamics of gas and petroleum. Integrated energy planning is not a luxury — it is a necessity. Yet policymakers persist in treating these sectors as siloed fiefdoms. Efforts to boost power sector consumption—often through punitive levies on alternative energy sources—have ripple effects that destabilize the gas and petroleum markets. For instance, prohibitive gas price hikes for captive power users have pushed some industries off the utility grid, reducing gas consumption but creating a glut of expensive imported regasified liquefied natural gas (RLNG). This forces a reduction in cheaper domestic gas supply to accommodate RLNG, driving up costs and eroding cross-subsidies that once benefited domestic consumers. The result? A burgeoning gas circular debt, as the “solution” to one problem seeds another.

The original plan hinged on a flawed assumption: that Chinese IPPs would waive LPS, allowing fresh bank financing at lower rates to clear the debt stock by 2031. The International Monetary Fund, ever the cautious overseer, endorsed this — provided the LPS was waived and the burden passed to consumers via surcharges, which already exceed Rs3 per unit on electricity bills. With no cap on these surcharges, rising interest rates could further inflate costs for households already stretched thin. Meanwhile, the primary beneficiaries were to be listed energy companies and their shareholders—including the government and stock market investors—whose balance sheets would gleam from unlocked valuations. Consumers, by contrast, were promised no relief until the distant horizon of 2031.

The refusal of Chinese IPPs to waive LPS — unlike earlier concessions extracted from local IPPs, which some shareholders decried as coercive — lays bare the plan’s naivety. Geostrategic realities, particularly Pakistan’s reliance on Chinese support amid regional tensions, make such demands politically untenable. The writing was on the wall: IPPs had privately signalled their resistance, knowing that waiving LPS would weaken their financial position. Yet the plan’s architects dodged questions about this contingency, banking on optimism rather than pragmatism.

Compounding the missteps, recent policies have imposed steep levies on alternative energy sources — such as a 60 percent tax on furnace oil (FO) — to steer industries toward the national grid. While some captive power users have complied, others, constrained by technical incompatibilities, have sought alternatives like FO, only to face new penalties. This has reduced FO consumption, threatening the throughput of local refineries and risking higher petroleum imports—a cascading series of unintended consequences. The power sector’s circular debt plan, far from resolving core issues, has instead spawned new distortions across the energy ecosystem.

It is about time the government provided real solutions that ease the burden on general consumers, rather than continue with measures designed for optics — or worse, to serve vested interests.

The energy sector’s challenges are not linear; they demand a holistic approach rooted in technical expertise and political courage. Reforming distribution inefficiencies and addressing grid anomalies cannot be achieved through financial sleight of hand or coercive pricing. A technically capable team, unencumbered by short-term political pressures, must spearhead an integrated energy strategy that balances electricity, gas, and petroleum dynamics. Without such a reset, Pakistan risks perpetuating a cycle of debt, dysfunction, and disillusionment — with consumers bearing the cost of every misstep.

Copyright Business Recorder, 2025