Acute power crisis: BMP warns of massive power outages in July

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The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) Chairman Mian Anjum Nisar has warned of massive power outages during next month of July and scarcity of gas in the coming winters, as the government has failed to complete an LNG tender for July.
The FPCCI former president observed that this is the third time that the government has unable to purchase fuel, which is a threat to exacerbate electricity shortages, leading to more power shutdowns in the country in coming months.

Expensive fuel imports are starting to hit consumers, as Pakistan continues to increase domestic prices to meet a key condition to secure a crucial bailout from the International Monetary Fund.
Greater reliance on imported LNG would only reinforce credit risks for investors in the country’s LNG-to-power value chain. Planned pipeline projects and terminals may also take time to materialize as geopolitical conflicts and unviable economics exacerbate stranded asset risks for LNG infrastructure.

Anjum Nisar says that the government needs at least $40 billion in the next 10 months to tide over the economic crisis. Pakistan is not the only cash-strapped emerging nation struggling to secure LNG in a tight global market.

Acute power crisis: BMP warns of massive power outages in July

The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) Chairman Mian Anjum Nisar has warned of massive power outages during next month of July and scarcity of gas in the coming winters, as the government has failed to complete an LNG tender for July.

The FPCCI former president observed that this is the third time that the government has unable to purchase fuel, which is a threat to exacerbate electricity shortages, leading to more power shutdowns in the country in coming months.

Expensive fuel imports are starting to hit consumers, as Pakistan continues to increase domestic prices to meet a key condition to secure a crucial bailout from the International Monetary Fund.

Greater reliance on imported LNG would only reinforce credit risks for investors in the country’s LNG-to-power value chain. Planned pipeline projects and terminals may also take time to materialize as geopolitical conflicts and unviable economics exacerbate stranded asset risks for LNG infrastructure.

Anjum Nisar says that the government needs at least $40 billion in the next 10 months to tide over the economic crisis. Pakistan is not the only cash-strapped emerging nation struggling to secure LNG in a tight global market.