HUBCO and CPPA Enter an Agreement for Payment of Overdue Receivables
The Hub Power Company Limited (HUBCO) and the Central Power Purchasing Agency [CPPA] (Guarantee) Limited (Power Purchaser) have initialed an agreement in furtherance of the Memorandum of Understanding (MoU) dated 21 August 2020, according to a notification issued to the Pakistan Stock Exchange (PSX).
Under the agreement between the HUBCO and the CPPA, the payment of overdue receivables is an integral part of it, and the payment mechanism envisaged is two installments, with 40 percent of the overdue receivables payable within 30 business days of signing it (comprising a third of cash and two-thirds of the financial instruments of the Pakistan Investment Bonds (PIBs) and Sukuks), and the remaining 60 percent payable six months thereafter through the same method as that of the first installment.
Finance ministry to immediately pay Rs180bn to IPPs as part of new deal
Business
The News/Files
ISLAMABAD: The Ministry of Finance is obligated to immediately pay Rs180 billion to the independent power producers (IPPs) as part of a new Rs450-billion payment deal signed on Monday,
According to the deal documents, two dozen IPPs, including the Hub Power Company Limited (HUBCO), had entered into a preliminary agreement with the government under which the finance ministry would pay the IPPs 40% of the Rs450-billion payment or Rs180 billion immediately, whereas the remaining 60% or Rs270 billion will be paid in the next financial year.
Finance ministry, IPPs sign Rs450bn payment deal
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Finance ministry to pay IPPs 40% immediately, remaining 60% in the next financial year
Under the agreement, IPPs to be paid dividends in Pakistani rupees instead of US dollars
ISLAMABAD: The Ministry of Finance and Independent Power Producers (IPPs) have inked a deal for payment worth Rs450 billion to the latter,
According to the deal documents, two dozen IPPs, including the Hub Power Company Limited (HUBCO), had entered into a preliminary agreement with the government under which the finance ministry would pay the IPPs 40% of the Rs450-billion payment or Rs180 billion immediately, whereas the remaining 60% or Rs270 billion will be paid in the next financial year.
Pakistan, IMF inching towards stalled programme
Top Story
The logo of International Monetary Fund.
ISLAMABAD: Pakistan and the IMF are inching towards formal revival of the stalled Fund programme, as the government has decided to hike power tariff by 25-30 percent and to abolish up to Rs200 billion corporate sector income tax exemptions.
The top political leadership has given go-ahead to the economic team to fulfill all the required prerequisites for revival of the stalled programme under $6 billion Extended Fund Facility (EFF).
“The power tariff will be hiked in a gradual manner up to 25 to 30 percent in a bid to fulfill the IMF condition,” top official sources confided to this correspondent. The IMF program stalled in February 2020 after the COVID-19 outbreak. The second review is now under completion and it is yet to be seen whether the second and third reviews will complete simultaneously or these will be done separately. The IMF and FBR teams held a virtual crucial r
Top Story
December 23, 2020
ISLAMABAD: Pakistan and the IMF are inching towards formal revival of the stalled Fund programme, as the government has decided to hike power tariff by 25-30 percent and to abolish up to Rs200 billion corporate sector income tax exemptions.
The top political leadership has given go-ahead to the economic team to fulfill all the required prerequisites for revival of the stalled programme under $6 billion Extended Fund Facility (EFF).
“The power tariff will be hiked in a gradual manner up to 25 to 30 percent in a bid to fulfill the IMF condition,” top official sources confided to this correspondent. The IMF program stalled in February 2020 after the COVID-19 outbreak. The second review is now under completion and it is yet to be seen whether the second and third reviews will complete simultaneously or these will be done separately.