The end of Libor?
On June 30, British bank NatWest sent out an arcane-sounding press release - bus operator National Express had become the first company to take out a loan based on Sonia,…
The macroeconomics of electricity tariffs
In Pakistan, the landscape of power tariffs is shaped significantly by the framework of Power Purchase Agreements (PPAs) and is directly connected to macroeconomics. Under these agreements, the costs associated…
Power sector controversy: take-or-pay contracts
Energy prices have increased tremendously which has created controversy and unrest in the country. IPP contracts are under great debate. Many people argue that these are unfair and unjust. Take-or-pay…
This crisis is a moment; Part – III
The current business-as-usual model continues to delay deregulation by repeated extensions, issuance of new/amended refinery policies. It will one day improve competitiveness, reduce demurrages and build our strategic and commercial…
Road to urgent resolution of the power tariff crisis
Rising electricity bills are breaking the back of the domestic consumers and making manufacturing businesses unviable. There are protests and agitation across the country about the rising electricity bills which…
Reducing rising electricity tariff?—II
LIBOR has gone up; thus a case for reduction of this margin suitably. Second solution is increase in the repayment period. In the power sector, debt servicing is cash based…
Reducing rising electricity tariff?-I
NEPRA (National Electric Power Authority) has increased electricity base tariff by Rs 4.96 per unit from Rs 24.82 per unit to Rs 29.78 per unit. It is a 20% increase…
Thar coal mine expansion
SECMC (Sindh Engro Coal Mining Company) has filed a tariff petition for expanding its capacity. This is a third expansion. The mine started its phase-I at 3.8 MTPA (Million Tons…
Traders relaxed as ECB starts running down massive bond holdings
Strong investor inflows into bond markets this year mean traders and bankers are confident the European Central Bank will have a smooth start to unwinding its huge bond holdings, but…
Real austerity: need of the hour
The policy of controlled imports is working as monthly import bill is down to $5 billion (on average) over the last two months. However, the desired objective to bring the…
