Pakistan’s HUBCO seeks extension of $51 million guarantees to safeguard coal plants
Pakistan’s HUBCO seeks extension of $51 million guarantees to safeguard coal plants/node/2608298/pakistan
Pakistan’s HUBCO seeks extension of $51 million guarantees to safeguard coal plants
An undated file photo of a Hubco Coal Power Plant. (Photo courtesy: HUBCO)
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Updated 13 min 38 sec ago
Reuters
Pakistan’s HUBCO seeks extension of $51 million guarantees to safeguard coal plants
New transmission charges, which HUBCO says were not originally included, have pushed investors to seek extended guarantees
Coal-fired power is crucial amid rising use of solar power, whose variability could potentially cause blackouts if mismanaged
Updated 13 min 38 sec ago
Reuters
KARACHI: Pakistan’s largest independent power producer Hub Power (HUBCO) said on Wednesday it was seeking an extension to $51 million in bank guarantees to protect its coal-fired power plants, a crucial source of stable power amid Pakistan’s rising use of solar.
The guarantees, previously short-term, would now stay in place until 2034 to cover future loan repayments and potential penalties, the company said in a notice to the country’s stock exchange.
New government-imposed transmission charges, which HUBCO is contesting and says were not included in its original contracts, have pushed investors to seek extended guarantees. The cost of borrowing to provide these guarantees would remain below the expected returns from the projects, it said.
“The extended guarantee will cover any fines or funding gaps that may arise,” HUBCO said in a notice to the country’s stock exchange, adding that the company has invested about $131 million in the projects so far.
The South Asian nation has faced chronic electricity shortages and challenges to grid stability because of rising solar power use, fuel import constraints due to a foreign exchange crisis and a debt-burdened electricity sector.
Stable coal-fired power supply is crucial amid rising use of solar power, whose variability could potentially cause blackouts if mismanaged.
HUBCO will hold an extraordinary general meeting in August to seek shareholder approval for the plan for its two 330 megawatt (MW) plants operating on locally mined coal “to ensure the plants’ continued operation,” it said.
The plants’ problems stem from broader challenges faced by Pakistan’s power sector. Pakistan last year authorized an early termination of a power supply deal running to March 2027 as a part of an IMF mandate to cut energy debt.
QUETTA: Three people were killed while 12 others were injured in Pakistan’s southwestern Kalat district on Wednesday, police and an official confirmed, after unidentified men opened fire on a passenger bus headed toward Quetta.
Kalat Station House Office (SHO) Habibullah Baloch said unidentified armed men shot indiscriminately at a passenger bus from Karachi headed toward Quetta on Wednesday. The attack took place near Nimragh Cross in Kalat district, located on the N-25 highway connecting Balochistan to the southern port city of Karachi.
“Three passengers, residents of Karachi, were killed in the attack and 12 others were wounded,” Baloch told Arab News, adding that the injured were shifted to the District Hospital Kalat for treatment.
The police official said the attackers did not stop the bus to check the National Identity Cards (NICs) of the passengers before firing at them, adding that the gunmen “sprayed” the vehicle with bullets.
He said dozens of passengers were traveling in the bus, adding that most of them were residents of Karachi.
Balochistan government spokesperson Shahid Rind condemned the attack in a statement.
“The security forces have surrounded the area and a hunt for the attackers is underway,” Rind said.
The latest attack has taken place after gunmen abducted and killed nine people last week when they stopped two passenger buses on a highway in Balochistan’s Zhob and Loralai districts. Those buses were traveling from Quetta to the eastern Punjab province.
Balochistan, Pakistan’s largest but most impoverished province, has been the site of a long-running insurgency that has intensified in recent months, with separatist militants attacking security forces, government officials and installations and people from other provinces, particularly Punjab, the country’s most populous and prosperous province and a major recruitment base for the military.
The Baloch Liberation Army (BLA) is the strongest of a number of insurgent groups operating in the mineral-rich region bordering Afghanistan and Iran. The group accuses the central government of stealing their resources to fund development in Punjab and other parts of the country. The federal government denies the allegations and says it is working for the uplift of local communities in Balochistan, where China has been building a deep-sea port as part of its Belt and Road Initiative.
Pakistan accuses India of backing separatists in Balochistan as well as religiously motivated militant groups, like the Pakistani Taliban, in its northwestern Khyber Pakhtunkhwa province. New Delhi denies the allegations.
Balochistan has seen a rise in militant attacks since last year. Last August, nearly two dozen passengers were killed after BLA militants forcibly removed them from Punjab-bound buses in a string of coordinated attacks in Balochistan. Another seven Punjabi commuters were offboarded from buses and killed in Balochistan’s Barkhan district in February this year.
In March, BLA separatists hijacked a train that carried hundreds of passengers near Balochistan’s Bolan Pass, which resulted in the deaths of 23 soldiers, three railway employees and five passengers. At least 33 insurgents were also killed.
ISLAMABAD: Pakistan’s interior ministry announced on Wednesday that the government would send Islamabad Police officers to Beijing so that they can receive training in artificial intelligence and modern policing methods.
Pakistan has recently undertaken measures to enhance its policing methods, especially as it faces surging militant attacks in its northwestern Khyber Pakhtunkhwa (KP) and southwestern Balochistan provinces. These efforts include digitizing police records, hiring more women police officers and releasing public awareness videos on social media platforms.
Pakistan’s Interior Minister Mohsin Naqvi met Beijing Police Department’s Deputy Director General Gao Jianxin in Islamabad. The two sides discussed collaboration between the police forces of Islamabad and Beijing, the interior ministry said.
“During the meeting, it was decided that officers of Islamabad police will be sent to Beijing for training in modern policing and advanced technologies,” the ministry said in a statement.
“These officers will participate in various training courses conducted by the Beijing Police Department. They will also receive special training in the use of artificial intelligence to further improve the policing system,” it added.
The minister said Pakistan would benefit from the “highly efficient and technologically advanced” Beijing police force, adding that the use of modern technology was essential for public safety and crime prevention.
Naqvi also highlighted the importance of timely information sharing to tackle militancy, crime, drug trafficking and human smuggling, the ministry said.
He accepted the Beijing Police’s offer to provide anti-riot training to the Islamabad police, the statement said.
ISLAMABAD: Pakistan Navy Chief Admiral Naveed Ashraf on Wednesday called for increasing the country’s capabilities in drones and unmanned systems to counter threats at sea, the navy said.
These comments from Ashraf came while he chaired a meeting of the navy’s Command & Staff Conference at the Naval Headquarters in Islamabad. The conference is the apex decision-making forum of the navy, where its chief, principal staff officers and field commanders review policies and strategic plans.
“Admiral Naveed Ashraf also emphasized the development of capabilities in unmanned systems, including drones and unmanned surface/underwater vessels, to enhance surveillance and response capabilities,” the navy’s media wing said in a statement.
Ashraf underscored the importance of maintaining perpetual combat readiness to effectively counter both traditional and non-traditional threats in the maritime domain, the statement added.
He appreciated the navy’s efforts to maintain maritime security during Pakistan’s four-day military conflict with India in May, highlighting the country’s “robust defense capabilities.”
“Naval Chief commended PN’s proactive measures in ensuring continuous flow of supplies through Sea Lanes of Communication (SLOCs) and uninterrupted operations at seaports,” the navy said.
Unmanned systems and drones help a country detect threats, track enemy movements and monitor maritime borders without risking lives.
These monitoring systems are cost-effective as well, helping navies extend their reach without the need for additional ships or personnel.
Pakistan’s quiet solar rush puts pressure on national grid
Thousands of Pakistanis across the nation turn to solar power to escape soaring electricity bills and prolonged power cuts
Solar power reached 24% of Pakistan’s energy mix in first five months of 2025 to become largest source of energy production
Updated 16 July 2025
AFP
KARACHI: Pakistanis are increasingly ditching the national grid in favor of solar power, prompting a boom in rooftop panels and spooking a government weighed down by billions of dollars of power sector debt.
The quiet energy revolution has spread from wealthy neighborhoods to middle- and lower-income households as customers look to escape soaring electricity bills and prolonged power cuts.
Down a cramped alley in Pakistan’s megacity of Karachi, residents fighting the sweltering summer heat gather in Fareeda Saleem’s modest home for something they never experienced before — uninterrupted power.
“Solar makes life easier, but it’s a hard choice for people like us,” she says of the installation cost.
In this photograph taken on June 24, 2025, solar panels are seen installed across the rooftops of a residential neighbourhood in Pakistan's port city of Karachi. (AFP)
Saleem was cut from the grid last year for refusing to pay her bills in protest over enduring 18-hour power cuts.
A widow and mother of two disabled children, she sold her jewelry — a prized possession for women in Pakistan — and borrowed money from relatives to buy two solar panels, a solar inverter and battery to store energy, for 180,000 rupees ($630).
As temperatures pass 40 degrees Celsius (104 degrees Fahrenheit), children duck under Saleem’s door and gather around the breeze of her fan.
Mounted on poles above homes, solar panels have become a common sight across the country of 240 million people, with the installation cost typically recovered within two to five years.
In this photograph taken on June 23, 2025, a labourer carries a solar panel along a road in Pakistan's port city of Karachi. (AFP)
Making up less than two percent of the energy mix in 2020, solar power reached 10.3% in 2024, according to the global energy think tank Ember.
But in a remarkable acceleration, it more than doubled to 24% in the first five months of 2025, becoming the largest source of energy production for the first time.
It has edged past gas, coal and nuclear electricity sources, as well as hydropower which has seen hundreds of millions of dollars of investment over the past decades.
As a result, Pakistan has unexpectedly surged toward its target of renewable energy, making up 60% of its energy mix by 2030.
In this photograph taken on June 24, 2025, Arsalan Arif, a local businessman, cleans solar panels installed on his house's rooftop in Pakistan's port city of Karachi. (AFP)
Dave Jones, chief analyst at Ember, told AFP that Pakistan was “a leader in rooftop solar.”
Soaring fuel costs globally, coupled with demands from the International Monetary Fund to slash government subsidies, led successive administrations to repeatedly hike electricity costs.
Prices have fluctuated since 2022 but peaked at a 155-% increase and power bills sometimes outweigh the cost of rent.
“The great solar rush is not the result of any government’s policy push,” Muhammad Basit Ghauri, an energy transition expert at Renewables First, told AFP.
“Residents have taken the decision out of clear frustration over our classical power system, which is essentially based on a lot of inefficiencies.”
In this photograph taken on June 24, 2025, a local resident cleans solar panels installed on his house's rooftop in Pakistan's port city of Karachi. (AFP)
Pakistan sources most of its solar equipment from neighboring China, where prices have dropped sharply, largely driven by overproduction and tech advancements.
But the fall in national grid consumers has crept up on an unprepared government burdened by $8 billion of power sector debt, analysts say.
Pakistan depends heavily on costly gas imports, which it sells at a loss to national energy providers.
It is also tied into lengthy contracts with independent power producers, including some owned by China, for which it pays a fixed amount regardless of actual demand.
A government report in March said the solar power increase has created a “disproportionate financial burden onto grid consumers, contributing to higher electricity tariffs and undermining the sustainability of the energy sector.”
Electricity sales dropped 2.8% year-on-year in June, marking a second consecutive year of decline.
Last month, the government imposed a new 10-% tax on all imported solar, while the energy ministry has proposed slashing the rate at which it buys excess solar energy from consumers.
“The household solar boom was a response to a crisis, not the cause of it,” said analyst Jones, warning of “substantial problems for the grid” including a surge during evenings when solar users who cannot store energy return to traditional power.
The national grid is losing paying customers like businessman Arsalan Arif.
A third of his income was spent on electricity bills at his Karachi home until he bought a 10-kilowatt solar panel for around 1.4 million rupees (around $4,900).
“Before, I didn’t follow a timetable. I was always disrupted by the power outages,” he told AFP.
Now he has “freedom and certainty” to continue his catering business.
In this photograph taken on June 23, 2025, labourers load a solar panel over an auto rickshaw in Pakistan's port city of Karachi. (AFP)
In the eastern city of Sialkot, safety wear manufacturer Hammad Noor switched to solar power in 2023, calling it his “best business decision,” breaking even in 18 months and now saving 1 million rupees every month.
The cost of converting Noor’s second factory has now risen by nearly 1.5 million rupees under the new government tax.
“The tax imposed is unfair and gives an advantage to big businesses over smaller ones,” he said.
“Policymakers seem completely disconnected from the public and business community.”
PESHAWAR: Unidentified gunmen shot dead two constables in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province on Wednesday, police said amid a surge in militant attacks in the restive area.
The attack took place in Dera Ismail Khan district’s Kulachi area near the Afghan border, district police spokesperson Yaqoob Bukhari confirmed.
Bukhari identified the slain cops as constables Ghulam Muhammad and Shehzad, saying they were ambushed by the unknown attackers while they left their police station to buy groceries.
“A heavy police contingent responded immediately,” Bukhari told Arab News. “During the ensuing search operation, one terrorist was killed and two others injured in an exchange of fire.”
Kalashnikov rifles and other ammunition were recovered from the slain militant, Bukhari said, adding that a search operation was underway to track down the remaining assailants.
KP Chief Minister Ali Amin Gandapur condemned the attack, paying tribute to the slain constables and directing authorities to arrest the suspects involved in the killing.
The latest attack takes place amid surging violence in KP, where earlier this month an explosion claimed by Daesh killed at least four local government officials and policemen.
A woman was killed last week while three others were injured in two quadcopter attacks in the province that police said were conducted by militants.
Last week also saw the killing of two people, including a senior leader of the Awami National Party, who were shot dead by unidentified assailants in the Bajaur district.
No militant group has claimed responsibility for the attack on the constables. However, the Tehreek-e-Taliban Pakistan (TTP) militant group has previously claimed responsibility for similar attacks in KP, which borders Afghanistan.
Pakistan’s government has also blamed the TTP for some of the deadliest attacks against law enforcers and civilians in recent years. Islamabad has accused Afghanistan of sheltering TTP militants, urging Kabul to take decisive action against militants it says operate from Afghan soil.
Kabul has rejected the allegations and urged Islamabad to resolve its security matters internally.