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Govt approves Letter of Comfort for Rs1.23tr loan | The Express Tribune

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Govt approves Letter of Comfort for Rs1.23tr loan | The Express Tribune



ISLAMABAD:

The government on Friday approved the issuance of a Letter of Comfort in favour of banks to meet the condition for disbursement of a loan of Rs1.23 trillion obtained for the settlement of circular debt, taking responsibility in case the cash-starved power sector fails to repay the debt.

In another decision, the Economic Coordination Committee (ECC) of the cabinet, which met under the chairmanship of Finance Minister Muhammad Aurangzeb, approved an arrangement for waiving Rs120 billion in late payment interest the Pakistan Atomic Energy Commission (PAEC) owed to its fuel suppliers. It also decided to pass on the financial obligation of Rs22 billion to gas consumers under the same arrangement.

The ECC approved the issuance of Rs659.6 billion worth of sovereign guarantees for circular debt financing of Rs1.225 trillion, according to an official statement. The guarantee is intended for the settlement of Power Holding Limited’s (PHL) debt and overdue payments to the independent power producers (IPPs).

Last month, the government and commercial banks signed financing and security agreements for taking Rs1.225 trillion loans for payment to power producers. Electricity consumers will pay the principal and the interest on loans through a surcharge of Rs3.23 per unit.

Due to the poor fiscal health of the power sector, the banks refused to lend the money and demanded the Letter of Comfort from the Ministry of Finance. An official handout stated that the “ECC authorised the Finance Division to issue a Letter of Comfort”.

Subsequently, Habib Bank Limited will accept the letter as satisfactory compliance before the first drawdown of circular debt financing.

The ECC approved the Memoranda of Understanding (MoUs) with PAEC and authorised the Central Power Purchasing Agency-Guarantee (CPPA-G) to execute negotiated settlement agreements (NSAs) based on the MoU signed for the restructuring of power purchase agreements.

The ECC authorised CPPA-G and PAEC to amend the relevant agreements and make any relevant changes to standardise such amendments. It also authorised PAEC to file tariff petitions with Nepra for new tariffs for five nuclear power plants based on debt adjustments among the parties.

However, some of the ECC members said those agreements did not help to reduce tariffs in a major way and prices were again set to increase on account of quarterly tariff adjustments and monthly fuel cost adjustments.

The ECC approved the waiver of Rs119.5 billion on account of late payment interest. As part of the agreement, it authorised CPPA-G to pay Rs89.5 billion to OGDCL through Uch Power Limited (UPL-I) and UPL-II from the circular debt financing facility, as a lump sum instead of 18 monthly instalments.

The government will issue a policy guideline to enable Ogra to incorporate the adjustment of Rs21.9 billion into the cost of RLNG supply.

The ECC agreed to shift Fatima Fertiliser, Agritech and Fauji Fertiliser Bin Qasim plants on the gas supply network of Mari Energies. Mari will provide 170 mmcfd of gas to these plants over the next two years from a new field that will be developed with an investment of $200 million.

With the decision, all the 10 fertiliser plants have been shifted to Mari Energies to ensure adequate and affordable supply of fertiliser.

The raw gas from Ghazij-Shawal facility will be delivered within Mari gas field. The respective fertiliser customers shall install facilities for gas processing and compression, injection and transportation in Sui companies’ network to their respective plant sites.

The gas price at the delivery point shall be equal to the applicable wellhead price as notified by Ogra from time to time. Fertiliser customers shall enter into bilateral gas sale and purchase agreements with Mari Energies.

Mari will have the flexibility to supply any volume that becomes available from any of the reservoirs to any of its customers including SNGPL/SSGCL, as “swing volume” on “as and when available basis” at the applicable gas price as notified by Ogra.

The committee approved a proposal of the Ministry of National Food Security for the reallocation of funds within the division. The approval allows transfer of resources from the IPC Division through a technical supplementary grant to support ongoing agricultural research initiatives.



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52 reforms in 52 weeks: Ashwini Vaishnaw outlines massive railway overhaul for 2026

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52 reforms in 52 weeks: Ashwini Vaishnaw outlines massive railway overhaul for 2026


Indian Railways has reached a global milestone in freight operations, securing its position as a premier international logistics hub. Union Minister for Railways, Ashwini Vaishnaw, announced today that the national carrier has achieved an unprecedented scale in its logistics division. Highlighting this achievement, the Minister stated, “Indian Railways has become the second-largest cargo carrier in the world.”

Building on this momentum, the Ministry has prepared a rigorous roadmap for the upcoming year aimed at systemic transformation. The government plans to roll out a series of weekly initiatives to modernise every facet of rail travel and transport. Vaishnaw explained the structured timeline, saying, “For 2026, Railways has resolved to implement 52 reforms in 52 weeks.”

The initial phase of this plan will prioritise the passenger experience, with a focus on improving the quality of onboard facilities. The Minister identified the primary starting point for this year-long agenda, noting, “The first reform is better onboard services in Railways.”

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In addition to passenger amenities, the government is placing strong emphasis on the “Gati Shakti” initiative to streamline the nationwide movement of goods. This strategic focus is designed to strengthen the country’s supply chain. Vaishnaw confirmed the freight sector’s priority, adding, “The second concerns ‘Gati Shakti Cargo.’”

A cornerstone of the 2026 agenda is a comprehensive overhaul of sanitation and hygiene standards. The Ministry has developed a new blueprint to ensure that the rail network’s cleanliness meets global benchmarks. Detailing the specifics of the first major initiative, the Minister remarked, “Reform number one for 2026 will ensure proper end-to-end cleaning of the Railways… The concept of a clean rail station has been established.”

This cleanliness drive is not a short-term measure but a multi-year commitment to cover the entire Indian Railways fleet. The implementation will be phased to ensure thoroughness and consistency. Vaishnaw clarified the timeline, stating, “Over three years, this reform will be implemented across all trains.”

To ensure the success of these reforms, the Ministry is introducing a robust accountability framework. These measures will include performance-based contracts and the integration of modern digital tools to monitor progress in real time. Emphasising the shift towards professional and technology-driven management, the Minister concluded, “There will be clearly defined service-level agreements… There will be extensive use of technology.”



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BrewDog owners say craft beer company could be sold off

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BrewDog owners say craft beer company could be sold off



Craft beer brand BrewDog could be sold off after the company started the process to find new investors.

The Scottish beer brand recently announced plans to close all of its distilling brands, meaning it would no longer produce any of its spirits, including Duo Rum, Abstrakt Vodka, and Lonewolf Gin, at its distillery in Ellon, Aberdeenshire.

The company, which was founded in 2007, said it made the decision to focus on its beer brands, including the highly-popular Punk IPA, Elvis Juice, and Hazy Jane.

Now, in a statement, a spokesperson for BrewDog said the company had appointed Alix Partners to “support a structured and competitive process to evaluate the next phase of investment for the business.”

The statement said: “As with many businesses operating in a challenging economic climate and facing sustained macro headwinds, we regularly review our options with a focus on the long-term strength and sustainability of the company.

“Following a year of decisive action in 2025, which saw a focus on costs and operating efficiencies, we have appointed AlixPartners to support a structured and competitive process to evaluate the next phase of investment for the business. This is a deliberate and disciplined step with a focus on strengthening the long-term future of the BrewDog brand and its operations.”

Although no decisions have been made, a sale is under consideration.

In a statment BrewDog added: “BrewDog remains a global pioneer in craft beer: a world-class consumer brand, the No.1 independent brewer in the UK, and with a highly engaged global community. We believe that this combination will attract substantial interest, though no final decisions have been made.”

According to reports by Sky News, AlixPartners had begun sounding out prospective buyers in the last few days.

The company, which has 72 bars worldwide and four breweries in Scotland, the US, Australia, and Germany, said its breweries, bars, and venues will continue to operate as normal. It employs 1400 people across the organisation.

BrewDog’s founders James Watt and Martin Dickie are the company’s major shareholders alongside private equity company TSG, which invested £213 million in 2017, making it a 21 per cent shareholder.

In 2024, the beer brand grossed £357 million in sales, and it is a major independent brewer with 4 per cent market share in the UK grocery market.



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Craft beer brewer BrewDog could be broken up as sale process begins

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Craft beer brewer BrewDog could be broken up as sale process begins



Beermaker BrewDog could be broken up after consultants were called in to help look for new investors.

The Scotland-based brewer, which makes craft beer such as Punk IPA and Elvis Juice, has appointed consultants AlixPartners to oversee a sale process.

Last month, BrewDog announced it was closing its distilling brands, sparking concerns for jobs at its facility in Ellon, Aberdeenshire.

The company, which was founded in 2007, said it made the decision to focus on its beer products.

No decision has been made in respect of the sale process.

A spokesperson for BrewDog said: “As with many businesses operating in a challenging economic climate and facing sustained macro headwinds, we regularly review our options with a focus on the long-term strength and sustainability of the company.

“Following a year of decisive action in 2025, which saw a focus on costs and operating efficiencies, we have appointed AlixPartners to support a structured and competitive process to evaluate the next phase of investment for the business.

“This is a deliberate and disciplined step with a focus on strengthening the long-term future of the BrewDog brand and its operations.

“BrewDog remains a global pioneer in craft beer: a world-class consumer brand, the number one independent brewer in the UK and with a highly engaged global community.

“We believe that this combination will attract substantial interest, though no final decisions have been made.

“Our breweries, bars, and venues continue to operate as normal. We will not comment on any further speculation.”

Brewdog operates 72 bars around the world as well as four breweries.



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