The Independent Evaluation Office (IEO) of the International Monetary Fund (IMF) stated that case studies highlight the need for more cautious assumptions on feasibility and growth payouts of structural reforms in Pakistan.
KARACHI: Minister for Industries and Production Makhdoom Khusro Bakhtiar on Thursday met with the KE’s senior management at the company’s Bin Qasim Power Complex in Karachi to review the progress on its mega project Bin Qasim Power Station 3 (BQPS-III), which will add 900 MW to the K-Electric’s generation capacity and bolster the future of Karachi’s growth.
According to a press statement of the KE, it is equipped with state-of-the-art technology, 900 MW plant is being built at an estimated cost of around USD 650 million to generate clean and reliable energy for Karachi. Upon completion, the power plant will be among the top five most efficient plants in the country. The work on the first unit of 450 MW is 90 percent complete, while the second phase of 450 MW is also proceeding swiftly.
The minister appreciated the K-Electric’s efforts to make sustained investments for Karachi’s betterment. He said: “Karachi is an industrial hub for the country and the focus of my visit is to see the progress across the sectors. It is encouraging to see the progressive vision that is driving KE’s efforts.
Industries are the engine of our economy and the government is committed to supporting their growth through enabling policies. There is tremendous potential for investment in Pakistan, and a robust utility supply is integral to achieving this. The addition of 900 MW for Karachi is a gift to the people and the industries here, and the plant would be inaugurated by the prime minister of Pakistan upon its completion.”
The growth in power demand in KE’s service area is expected to remain above five percent and the KE expects over 700 MW of new connections in next two years, with more than half in the industrial segment.
The construction work on the BQPS-III plant started in December 2019 and it is progressing on the fast-track basis for completion of the plant to keep pace with the demand growth of the city.
In August, the K-Electric entered into a Gas Supply Agreement (GSA) with Pakistan LNG Limited (PLL) for the provision of 150 mmcfd RLNG to KE’s Bin Qasim Complex in the presence of Minister of Energy Hammad Azhar and SAPM Tabish Gauhar.
The GSA is the first of its kind, where a government entity is directly providing gas to a private entity and testifies to the government’s commitment towards Karachi. CEO K-Electric Moonis Alvi also thanked the industries and production minister for his visit, saying: “BQPS-III is a collaboration between several stakeholders on both the engineering and financing side, which demonstrates the vision we all share for the prosperous future of our city and for our country. A stable, safe, and consistent supply of energy is crucial to sustaining continued development in Karachi and the KE is proud to be leading this effort for its customers.
We appreciate the support of the federal government and associated ministries and look forward to embarking on a new era of progress and prosperity.” At the same time, K-Electric has been working closely with the federal government and relevant stakeholders to establish new interconnections and grids at key locations, which would enable Karachi to receive additional power from the national grid, taking the total withdrawal from the national grid to 2,050 MW, which will cement the company’s mission to provide safe and reliable power to its growing customer base of 3.2 million and more.
