UAE Official Stresses Need to Boost Multilateral Cooperation to Fight Coronavirus

Ahmed Ali Al Sayegh, Minister of State and UAE Sherpa. WAM
Ahmed Ali Al Sayegh, Minister of State and UAE Sherpa. WAM
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UAE Official Stresses Need to Boost Multilateral Cooperation to Fight Coronavirus

Ahmed Ali Al Sayegh, Minister of State and UAE Sherpa. WAM
Ahmed Ali Al Sayegh, Minister of State and UAE Sherpa. WAM

Minister of State and UAE Sherpa Ahmed Ali Al Sayegh stressed the need for multilateral cooperation in efforts to curb the spread of the new coronavirus.

"The need to strengthen multilateral cooperation in efforts to curb the spread of COVID-19 has become increasingly evident as states confront unprecedented challenges to the wellbeing of their peoples and communities," he said.

Sayegh's statement came during his participation in the Extraordinary Virtual Group of 20 (G-20) Sherpa Meeting convened on Thursday to discuss a global coordinated response to COVID-19.

"The G-20 platform provides an opportunity for all concerned states to join forces in mitigating the global impact of the coronavirus outbreak and implement strategic, coordinated action in pursuit of long-term economic recovery," he added.

Sayegh also highlighted UAE’s readiness to continue its political, economic, logistical, and humanitarian contributions to the global response.

He said the UAE is committed to ensure a smooth trade flow across borders to fight obstacles preventing delivery of aid and medical supplies.

The virtual meeting followed the second G-20 Sherpa Meeting held in Khobar, Saudi Arabia on March 12, wherein country representatives discussed the ongoing G-20 process and developments around COVID-19, health, trade and investment, and energy and climate change.



Pakistan Ends Power Purchase Deals to Cut Costs

A power transmission tower is seen in Karachi, Pakistan, January 24, 2023. REUTERS/Akhtar Soomro/File Photo
A power transmission tower is seen in Karachi, Pakistan, January 24, 2023. REUTERS/Akhtar Soomro/File Photo
TT

Pakistan Ends Power Purchase Deals to Cut Costs

A power transmission tower is seen in Karachi, Pakistan, January 24, 2023. REUTERS/Akhtar Soomro/File Photo
A power transmission tower is seen in Karachi, Pakistan, January 24, 2023. REUTERS/Akhtar Soomro/File Photo

Pakistan's government has reached an agreement with utilities to end power purchase contracts, including one with Pakistan's largest private utility that should have been in place until 2027, as part of efforts to lower costs, it said on Thursday.

The news confirms comment from Power Minister Awais Leghari to Reuters last month that the government was renegotiating deals with independent power producers to lower electricity tariffs as households and businesses struggle to manage soaring energy costs.

Earlier on Thursday Prime Minister Shehbaz Sharif said Pakistan has agreed with five independent power producers to revisit purchase contracts. He said that would save the country 60 billion rupees ($216.10 million) a year.

The need to revisit the deals was an issue in talks for a critical staff-level pact in July with the International Monetary Fund (IMF) for a $7-billion bailout.

Prior to the prime minister's announcement, Pakistan's biggest private utility, Hub Power Company Ltd, said the company agreed to prematurely end a contract with the government to buy power from a southwestern generation project.

In a note to the Pakistan Stock Exchange, it said the government had agreed to meet its commitments up to October 1, instead of an initial date of March 2027, in an action taken “in the greater national interest.”

A decade ago, Pakistan approved dozens of private projects by independent power producers (IPPs), financed mostly by foreign lenders, to tackle chronic shortages.

But the deals, featuring incentives, such as high guaranteed returns and commitments to pay even for unused power, resulted in excess capacity after a sustained economic crisis reduced consumption.

Short of funds, the government has built those fixed costs and capacity payments into consumer bills, sparking protests by domestic users and industry bodies.

Pakistan has begun talks on re-profiling power sector debt owed to China and structural reforms, but progress has been slow. It has also said it will stop power sector subsidies.