On Friday, private and lenders pointed out a significant flaw in the proposed alternative and renewable energy (ARE) policy 2019 and called for incentives to localize renewable energy technologies for project cost savings, consumer tariffs, foreign currency outflows and job creation. The two-day consultation session on ARE policy, co-chaired by PM Chairman of Energy Task Force Nadeem Babar and Minister of Power Irfan Ali, was attended by lender representatives and private sector representatives.
This includes the World Bank
IFC, ADB, USAID UNIDO and KfW, World Wind Energy Association, Pakistan Renewable and Alternative Energy Association, Pakistan Wind Energy Association, Pakistan Solar Association, Solar Quality Foundation, Pakistan Sugar Factory Association, Energy Update Group, USPCAS- E and major law firms and consulting firms. Lenders and private think tank representatives have suggested to the federal government that most of the ARE resources are mostly owned by states, AJK and Gilgit Baltistan, and located in state government.
Led by the Federal Agency for Alternative Energy Development. Thus, the provinces, AJK and GB most likely have the federal hopes and implementation priorities wishing to make a 30pc contribution to the overall power supply for renewable sources by 2030, in contrast to the 2006 policy that allowed the provinces to play a larger role on the project. I will not accept it well.
Second existing policy
The existing policy is clearer in terms of the 9700 MW target for renewable energy, compared to the new policy that set the target as a percentage of the existing generation capacity, which confuses investors. A representative from a donor agency questioned “the wisdom of killing an 8-gigawatt-capacity investor in policy 2006 and providing equal capacities for new investors under a new policy”, and how the government invested in new investors when former investors cried. I wondered if I could attract them. Foul.
Participants suggested that they set annual targets for each technology (wind, solar, biomass, etc.) and follow the implementation schedule. One official was given the opportunity to provide detailed expert opinion to Gul Hassan Bhutto, an ARE power expert in project development and operations, and asked that most of about 30 participants submit their written comments by next Wednesday after two minutes have been given. Requested
He told the meeting that the policy should be wise and wide documentation to ensure sustainable procurement. Therefore, drafts require major revisions and changes in accordance with stakeholder input, which should ensure sustainable, economic, available and responsible energy use. He said the previous policy looked smarter but was approved by the Cabinet's Economic Coordination Committee instead of the Council of Common Interests.
He believed that the same policy should be improved and approved by the CCI. As a way out, they argued that a trilateral agreement between the federal government and the state and investors should be in place to ensure that stakeholders do not have overwhelming discretion in decision making. Participants suggested that the policy of 8,900MW capacity in 2006 should give 145 projects priority to refuse if they make new competitive bids under clear conditions. .
For example, 19 projects with a capacity of 513 MW received letters of support, 22 projects with 1,200 MW were in tariff approval, and 109 projects with 6,500 MW were letters of interest. In addition, the thermal power plant under the 2002 policy is protected by the 2015 policy approved by the CCI, while similar treatment for the ARE project was rejected, creating an impression of anti-ARE bias.
Nadeem Babar and Irfan Ali told participants
They would manage the investors of the policy individually in 2006, but the majority of participants expressed skepticism about how CCI would approve new policies without solving outstanding problems. Private sector representatives stressed that the government plans to bid on the requested project, which could lead to cartelization without a feasibility study. Therefore, reverse competitive bidding must be taken into account according to the reference rate to be announced by the power regulator.
One of the participants suggested that this policy should be called a renewable power policy because it seemed to be electricity for the ARE resource concept aimed at 60% heating and cooling, 30pc transportation and 8-10pc power production. Participants also offered incentives to encourage localization of cost factors such as concrete columns, transformers, motors and generators, to reclaim manufacturers who left the market or encouraged local job creation and the lowest cost energy source.
Under existing agreements, foreign investors are taking advantage of indigenous resources such as wind, solar, land, steel poles, and batteries and benefiting from foreign exchange. In addition, the policy does not mention the potential of resources, especially offshore wind.
In addition, the proposed intergovernmental renewable energy project attracted half of the price compared to China's Sahiwal coal power project, in light of the lessons learned from the public bidding of coal-based power projects as a Jamshaw under ADB. Pakistan Economic Corridor.
When the bull seemed to breathe on Friday
The spectacular rally during the first four days of the week, which raised the KSE-100 index by 3,121 points, 10.85%, stopped. The market opened positively but could not maintain high levels and did not benefit. The benchmark index fell 534.43 points (1.7pc) during the day, settling to 31,350.02. During the session, the index was high and low by 216 and 659 points per day. But aside from the “little correction” after the most active week of the year, fake news in the Indian media put the market in panic.
Pakistan was blacklisted by FATF's affiliate APG in Canberra. The FATF (Financial Action Task Force) issued a statement by email to some intermediaries through an email `` FATF to investigate the progress of the Pakistani Action Plan at an October meeting '', but the Treasury said, The pressure to comfort Indian countries "The news is inaccurate and unfounded.
Investors still bordered
In general, institutional investors who had distanced themselves from purchasing remained on the sideline, while individuals and brokers decided not to take new positions ahead of rollover week. Reducing the 73pc's current account deficit year-on-year was still a sign of hope for an improved economic outlook. Foreign interest in purchases did not help boost the market, as interest in the development of Pakistan-India relations with India's occupying Kashmir status has remained.
Trading volume fell 213 million shares from the previous day, while trading value fell from Rs 7.6 billion to Rs 7.2 billion. Intermarket Securities is a major loser by Hub Power Company with 4.15pc, Habib Bank Ltd 2.47pc, Pakistan Petroleum Ltd 3.12pc, Fauji Fertilizer Company 3.02pc, United Bank Ltd 2.62pc, Dawood Hercules 3.40pc, Oil and Gas Development Company 1.49pc Has confirmed. , Lucky Cement 2.05pc, MCB Bank 1.31pc and Pakistan Oilfields Ltd 1.73pc.
Federal Board of Revenue
The Federal Board of Revenue (FBR) and trade representatives met on Friday to find a contract on the implementation of a fixed tax regime for traders and continued discussion of the newly imposed requirements requiring traders to hold copies of all parties' CNICs. Who they deal with. According to the FBR sources, the meeting agreed to form a subcommittee to further discuss this issue, but the transaction manager did not mention such an agreement in a statement issued after the meeting.
Representatives of traders met with FBR's top officials on three plans, including a simplified tax regime for traders, a fixed tax regime for small shop owners, and a business license to bring undocumented sectors under the tax net. Has announced a proposal. One senior tax officer told us traders that the demand was not appropriate and would not register under the Sales Tax Act.
In addition, traders do not agree to submit CNICs during the sale and purchase of goods. We decided to set up a subcommittee to listen to their proposals and investigate their proposals." The official added that the committee had already added larger representatives from one trader group. Another group of traders filed a protest against not including representatives in the commission.
Therefore, only one representative of every trader group decided to join the committee, officials said. On August 9, the FBR assured traders that no action would be taken based on the information from the CNIC submission already by September 30.
Meanwhile, Pakistan's former president
Mr. Ashraf Bhatti, announcing mantaman Tazaran, said in a statement that Friday's meeting with the FBR had not been concluded and another meeting was needed to find a breakthrough. He said that the second meeting will be held on Monday (August 26). He said both sides wanted to explain a specific part of the plan.
We are looking forward to positive results at the next meeting," he said. Secretary-General Naeem Mir of Ahn Mantazaran, Pakistan, also announced that talks on a fixed tax regime for traders are not yet decisive. He said a second meeting with FBR officials would be held on Monday.