Vietjet Thailand Adds Capacity to Domestic Flights with Fares from THB 0

Federal Minister for Power Awais Leghari outlined Pakistan’s long-term strategy to transform its electricity sector, setting an ambitious target of raising the share of clean energy in the national power mix to 90 percent by 2035. The announcement came during the Solar, Storage and Flexibility 2026 Conference, where the minister also highlighted key policy hurdles, including restrictions under Pakistan’s International Monetary Fund (IMF) programme that are delaying the introduction of a market-based electricity pricing mechanism. Speaking at the conference on Tuesday, Leghari said the government was pursuing a major shift in energy policy by moving away from a traditional generation-focused model towards a system centred on grid flexibility, energy security, battery storage and domestic manufacturing. He said the new approach is designed to reduce Pakistan’s dependence on imported fuels, shield consumers from volatile global energy prices and maximise the benefits of the country’s rapidly expanding solar sector. The minister said Pakistan has witnessed remarkable growth in rooftop solar installations, with nearly 38 gigawatts of distributed solar capacity now installed through private consumer investment. He described the rapid adoption of rooftop solar as one of the country’s biggest energy success stories but cautioned that it has also created new challenges for the national power system. According to Leghari, Pakistan generates significant amounts of electricity from solar energy during daylight hours, yet the absence of sufficient battery storage infrastructure prevents that surplus electricity from being utilised during evening peak demand. He stressed that without modern storage systems, the country would continue to struggle with balancing electricity supply and demand despite having abundant renewable energy resources. Referring to disruptions in Re-gasified Liquefied Natural Gas (RLNG) supplies earlier this year, the minister said the episode exposed Pakistan’s continued dependence on imported fuels. He noted that the interruption in fuel supplies led to electricity shortages and load shedding even though ample solar power was available during the daytime, highlighting the urgent need for large-scale energy storage. “Battery storage is no longer an optional technology—it has become a strategic national asset that is essential for ensuring Pakistan’s energy sovereignty,” Leghari said. He noted that clean energy sources, including hydropower, nuclear, wind and solar, currently contribute approximately 55 percent of Pakistan’s total electricity generation. However, he warned that achieving the government’s renewable energy targets would require significant investment in battery storage systems, transmission infrastructure and power market reforms. The minister emphasised that expanding renewable generation alone would not be sufficient unless supported by a modern electricity network capable of storing and transmitting clean energy efficiently. To support the country’s long-term energy transition, Leghari announced a three-point strategy. The plan includes expanding battery energy storage systems across the national grid, encouraging local battery manufacturing and assembly to reduce reliance on imports while creating employment opportunities, and introducing regulatory reforms aimed at providing long-term certainty and confidence for domestic and foreign investors. During a question-and-answer session following his address, the minister also disclosed that Pakistan’s commitments under the IMF programme currently limit the government’s ability to introduce a fully flexible, market-based electricity tariff system. He explained that the government has been in discussions with the IMF for several months regarding the introduction of a time-of-use tariff, under which electricity prices would vary according to the actual cost of power generation at different hours of the day. Such a system, he said, would encourage consumers to shift electricity consumption to off-peak periods, reduce pressure on the national grid and help integrate renewable energy more efficiently.

ISLAMABAD: The federal government has proposed recovering around Rs34 billion from consumers of distribution companies (Discos) and K-Electric through the quarterly tariff adjustment (QTA) for April-June 2026, translating into an estimated increase of Rs1.34 per unit. The proposed adjustment has been attributed largely to higher capacity-related costs resulting from a decline in electricity consumption during the quarter. However, representatives of the industrial sector have strongly opposed the proposed increase, arguing that businesses are already facing high electricity costs and cannot absorb another financial burden. The National Electric Power Regulatory Authority (NEPRA) held a public hearing on Wednesday to examine the QTA request, during which representatives of industries, power distribution companies and the government presented their positions. Initially, the power distribution companies had requested an adjustment of Rs23.031 billion for the second quarter of fiscal year 2026 under the QTA mechanism. The amount was later revised upward to Rs33.778 billion. According to the figures presented before NEPRA, the largest component of the proposed adjustment is related to capacity charges, amounting to Rs46.280 billion. Variable operation and maintenance costs account for another Rs4.936 billion. The calculation also includes a negative adjustment of Rs13.517 billion related to Use of System Charges (UoSC) and the Market Operator Fee (MOF), which partially offsets the overall increase. Similarly, Rs3.040 billion has been included to account for the impact of transmission and distribution losses on monthly Fuel Charges Adjustments (FCA). A further negative adjustment of Rs21.175 billion has been made under the incremental consumption package. The distribution companies have also claimed Rs14.211 billion for costs relating to Small Power Producers (SPPs) and Captive Power Producers (CPPs) that they say remained unrecovered. Industrial sector voices concern During the hearing, industrial representatives raised strong objections to the proposed QTA adjustment, warning that another increase in electricity prices could further weaken the competitiveness of Pakistan’s manufacturing sector. Rehan Javed, Aamir Sheikh and Tanveer Barry conveyed their concerns to NEPRA officials in the presence of representatives from the Ministry of Energy and the distribution companies. The representatives argued that industries were already operating under considerable cost pressures and that any additional increase in electricity tariffs would raise production expenses and make it more difficult for local businesses to compete in domestic and international markets. Tanveer Barry, representing the Karachi Chamber of Commerce and Industry (KCCI), particularly questioned the sharp rise in capacity-related charges. According to Barry, capacity charges had increased from around Rs36 billion in the first quarter to more than Rs50 billion in the period under review. He said the increase could ultimately translate into a much larger financial burden for consumers. He estimated that the combined impact could place an additional burden of approximately Rs3.50 per unit on consumers, depending on the final adjustment approved by the regulator. Barry also pointed out that eight distribution companies had reported positive capacity charges, while three had recorded negative adjustments. He urged NEPRA to examine the calculations and underlying reasons for the variations before approving any additional burden on consumers. Lower electricity demand Officials of the Peshawar Electric Power Company (Pesco) told the hearing that electricity consumption had fallen by approximately five per cent during the period under review. They attributed much of the decline to weaker demand from domestic and commercial consumers. Increasing adoption of solar energy was also cited as one of the factors reducing demand from residential consumers. NEPRA Member Maqsood Anwar Khan questioned Pesco officials about whether load-shedding was also being carried out in areas where consumers regularly paid their electricity bills. The Pesco representatives acknowledged that load-shedding was taking place. Maqsood Anwar Khan observed that interruptions in electricity supply could themselves contribute to lower electricity sales, as consumers would naturally use less grid electricity when supply was unavailable. Solarisation becomes key point of debate The growing use of solar power also featured prominently during the hearing. The NEPRA member noted that the expansion of solar generation had provided relief to the national electricity system by reducing daytime demand from the grid. He observed that without the contribution of solar energy, pressure on the power system and the need for daytime load management could have been considerably greater. He further noted that increasing solarisation was shifting the pattern of load-shedding, with pressure becoming more visible during night-time hours when solar generation was unavailable. The NEPRA member also disagreed with the assertion that solarisation alone was responsible for a decline in electricity sales, maintaining that the impact of rooftop and distributed solar generation should be assessed in a broader context. Industry questions capacity payments Industrial representatives also questioned why consumers should continue to shoulder substantial capacity payments when many areas were still experiencing load-shedding. Barry argued that consumers were effectively being asked to pay for electricity generation capacity while not receiving uninterrupted power supply. He further raised concerns about capacity payments being made to older and relatively inefficient power plants. According to him, the under-utilisation of generating units was contributing to higher capacity-related costs and ultimately increasing the price of electricity for consumers. The industrial sector also questioned whether the dispatch of power plants was fully aligned with the Economic Merit Order (EMO), arguing that deviations from the merit order could contribute to unnecessary costs. The representatives called on NEPRA to undertake a detailed review of the QTA calculations before reaching a final decision. They urged the regulator to defer the proposed increase, warning that higher electricity costs would place additional pressure on industries, increase production expenses and potentially undermine Pakistan’s export competitiveness. NEPRA is expected to examine the claims and objections raised during the public hearing before determining the final quarterly tariff adjustment applicable to consumers.

KARACHI: Sindh Chief Minister Syed Murad Ali Shah has directed the provincial Investment Department to urgently formulate a comprehensive public-private partnership (PPP) framework for transforming Keti Bandar into a modern deep-sea port and a major commercial, industrial and energy centre. The directive was issued during a meeting held at the Chief Minister’s House on Saturday, where officials discussed a broader plan to develop Sindh’s coastal belt and unlock the economic potential of the Indus Delta. The proposed project is being planned in line with the vision associated with Shaheed Mohtarma Benazir Bhutto and aims to establish Keti Bandar as an important maritime gateway connecting port operations with industrial, logistics, fisheries and energy-related activities. Integrated economic corridor planned Chairing the meeting, Chief Minister Murad Ali Shah said Keti Bandar should be developed as part of an integrated maritime and economic corridor rather than as a standalone port project. He directed the relevant departments to prepare detailed proposals covering port infrastructure, industrial estates, transportation and logistics networks, fisheries, energy facilities and tourism. The chief minister also called for a phased implementation strategy that would identify the project’s immediate, medium-term and long-term development requirements. According to the proposed plan, the Keti Bandar Integrated Corridor would become a major engine for economic activity, employment generation and investment in Sindh. The project is also expected to provide a platform for attracting domestic and foreign investors to the province’s coastal areas. PPP framework to attract private investment The Sindh government intends to develop the project through a PPP model, allowing private-sector investors to participate in financing, construction, development and operation of various components. Under the proposed framework, Keti Bandar could eventually host a deep-sea port alongside logistics and warehousing facilities, industrial zones, energy infrastructure, fisheries-related businesses and tourism projects. The government believes that bringing private capital and expertise into the development process could help accelerate infrastructure construction while reducing the immediate financial burden on the provincial government. Officials have been directed to develop an investment-oriented model that clearly identifies potential projects, financing requirements, revenue opportunities and possible areas of private-sector participation. $1 billion to $2.5 billion investment potential According to the Sindh budget 2026-27, the proposed Keti Bandar Maritime, Fisheries and Petroleum Economic Corridor has an estimated investment potential of between $1 billion and $2.5 billion. The planned corridor would include a modern fishing harbour, seafood processing and export facilities, petroleum-handling terminals, logistics infrastructure and industrial support zones. The development of seafood-processing facilities is expected to create opportunities for value addition and increase the potential for exports from Sindh’s coastal areas. Similarly, improved port and logistics infrastructure could facilitate the movement of goods and provide industries with better access to domestic and international markets. Keti Bandar as future energy gateway Chief Minister Shah has also instructed officials to explore the potential of Keti Bandar as a future energy gateway. The proposed energy infrastructure would include facilities for the import and handling of LNG, RLNG and LPG, along with other supporting infrastructure required for energy-related operations. The development of such facilities could allow Keti Bandar to play a role in meeting future energy requirements while creating opportunities for investment in storage, transportation and related industries. A feasibility study has already identified approximately 4,000 acres of land for the proposed development. Officials have been asked to incorporate the identified land into the broader planning process and determine the infrastructure requirements for different components of the corridor. Focus on coastal and industrial development The proposed project is expected to have a broader impact beyond port operations. The provincial government plans to combine maritime infrastructure with industrial development, logistics, fisheries, energy and tourism to create an integrated economic zone. The Indus Delta and surrounding coastal areas have significant potential for fisheries and other maritime activities, but inadequate infrastructure has historically limited their commercial development. The government believes that modern transport links, processing facilities, storage infrastructure and port connectivity could help unlock this potential and generate new employment opportunities for local communities. The development of tourism facilities is also being considered as part of the wider strategy, with officials tasked with identifying suitable investment opportunities along the coastal belt. Long-term economic vision The proposed Keti Bandar project forms part of Sindh’s broader ambition to strengthen its position as a maritime and logistics centre in the region. The provincial government aims to use the coastline’s strategic location to attract investment, expand trade-related infrastructure and promote industrial activity. For the plan to succeed, however, authorities will need to complete detailed feasibility studies, establish an effective PPP structure, address infrastructure and connectivity requirements and ensure that environmental and coastal considerations are incorporated into the development process. The chief minister has directed the Investment Department and other relevant agencies to move quickly on the project and prepare a comprehensive roadmap. If successfully implemented, the Keti Bandar Integrated Corridor could transform the coastal area into a major maritime gateway while creating new opportunities in port operations, logistics, fisheries, energy, manufacturing and tourism.

ISLAMABAD: The European Union (EU) is set to introduce a revised mechanism for extending its Generalised Scheme of Preferences Plus (GSP+) trade facility from January 2027, under which beneficiary countries will no longer receive an automatic extension. The Commerce Ministry informed the National Assembly Standing Committee on Commerce on Wednesday that Pakistan would have to formally seek continuation of the GSP+ facility and submit an action plan covering its commitments under 32 United Nations conventions. Commerce Secretary Jawad Paul briefed the committee that the new GSP+ framework would come into force in January 2027, followed by a two-year transition period. During this period, countries benefiting from the scheme will be required to prepare and submit their respective plans, which will subsequently be assessed by the European Union. According to the secretary, the EU’s assessment of Pakistan contains both positive observations and areas of concern. Among the issues highlighted by the European bloc is the human rights situation in Pakistan, along with security and climate-related challenges. The briefing was given during a meeting of the National Assembly Standing Committee on Commerce chaired by Jawad Hanif. Members including Asad Alam Khan Niazi, Khurshid Ahmed Junejo, Shaista Pervaiz, Dr Ramesh Kumar Vankwani, Tahira Aurangzeb, Mir Amir Magsi, Dr Mirza Ikhtiar Baig and Kiran Haider attended the meeting. EU concerns discussed The committee asked the Commerce Ministry to explain the concerns raised by the European Union in its latest assessment of Pakistan and their possible implications for the country’s trade interests. Jawad Paul said the EU report had acknowledged the difficult circumstances Pakistan was facing, particularly in terms of security challenges, economic pressures and climate-related disasters, including floods. These factors, he said, had affected the country’s capacity to fully implement various commitments. He urged members of parliament to present Pakistan’s perspective during their engagements with European Parliamentarians and other EU representatives. The secretary maintained that Pakistan’s circumstances should be taken into account while evaluating the country’s performance under the GSP+ framework. He said the government needed to undertake fundamental measures to address the challenges identified by the EU while also ensuring that Pakistan’s position was effectively communicated to European stakeholders. The committee also expressed concern over the repeated absence of the Commerce Minister from its meetings and conveyed its displeasure over the matter. Tariff reforms aimed at boosting exports The meeting also reviewed the government’s tariff reforms and their impact on industrial competitiveness and exports. Committee members questioned whether exporters would be required to commit to specific export targets in return for government support. The committee chairman clarified that the measures being introduced should not be viewed simply as incentives for exporters, arguing that reductions in duties and taxes were intended to lower production costs and improve Pakistan’s competitiveness in international markets. Officials from the Commerce Ministry said the government had been pursuing a policy of reducing tariff protection and lowering the cost of imported raw materials. The objective, they said, was to enable domestic industries to become more competitive and increase their presence in international markets. As part of the reforms, tariffs on around 2,000 tariff lines were reduced last year to make raw materials and other industrial inputs available at lower prices. The secretary said tariff reforms were being implemented under the National Tariff Policy and that the government had provided an estimated Rs160 billion benefit to industry and exporters during the previous year. For fiscal year 2026-27, another Rs120 billion has been earmarked under the relevant support measures. According to the Commerce Ministry, the previous Rs120 billion package was associated with a $1.27 billion increase in exports during 2025-26. Jawad Paul acknowledged that the tariff changes could initially result in higher imports as industries gained access to cheaper inputs and machinery. However, he argued that the trade imbalance could gradually improve as increased industrial production translated into stronger exports. Committee seeks review of Pakistan-China trade agreement The standing committee also raised concerns over Pakistan’s trade deficit with China and identified the China-Pakistan Free Trade Agreement (CPFTA) as an issue requiring closer examination. Members asked the Commerce Ministry to provide a detailed presentation on the agreement’s impact on Pakistan’s exports, imports and overall trade balance. The committee also sought an update on the latest trade discussions between Pakistan and the United States. The Commerce Secretary assured members that a detailed briefing on the matter would be provided in an in-camera session. Export Development Fund restructuring reviewed The committee separately examined the restructuring of the Export Development Fund (EDF). Officials told the meeting that the management and decision-making structure of the fund had been moved towards greater private-sector participation, with leading exporters being given a more significant role in determining spending priorities. The committee welcomed the shift towards projects that have a direct and measurable connection with export growth rather than conventional infrastructure-focused initiatives. Members also reviewed the allocation of 40% of the Export Finance Scheme (EFS) portfolio for small and medium-sized enterprises (SMEs). They stressed that smaller businesses should have fair and sufficient access to export financing so that they can participate more effectively in international trade. Pakistan Reinsurance Company performance discussed The committee also reviewed the performance and investment strategy of Pakistan Reinsurance Company Limited (PRCL). Members were informed that the company retained nearly 30% of its risk domestically, while approximately 70% was placed in international reinsurance markets, including London, Dubai and Singapore. The committee chairman called for careful management of the company’s financial resources and urged officials to explore opportunities to improve returns without compromising risk-management standards. Proposed amendments for Karachi Chamber examined The committee considered the Trade Organizations (Third Amendment) Bill, 2026, a Private Member’s Bill seeking amendments to the Trade Organizations Act in relation to the Karachi Chamber of Commerce and Industry (KCCI). During the discussion, members examined the special status of KCCI and proposed exemptions from certain district-related provisions. The chairman directed that the proposed amendments be drafted in appropriate legal language in consultation with the Ministry of Commerce and the Ministry of Law and Justice