Government apologises for night‑time load shedding amid LNG shortage
The federal government said the recent night‑time power cuts were caused by the non‑availability of contracted LNG from Qatar, leaving about 5,000 MW of plant capacity offline.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Power sector faces reduced generation and earnings; avoid buying affected power stocks.
Sectors & Direction
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Desk call: Do not buy · Negatively affected
- PowerNegatively affected
Companies
Mentions in This Briefing
Sectors: Power — Negative · Do not buy. PSX tickers: HUBC, KAPCO, POL. Power sector faces reduced generation and earnings; avoid buying affected power stocks.
Full Story
Open on Business Recorder## Government apology and cause of load shedding
The federal government issued a joint video statement on Monday, apologising to the nation for the night‑time load‑shedding that has persisted over the past weeks. Federal Ministers for Power Sardar Awais Ahmad Khan Leghari and for Energy highlighted that the primary cause is the shortfall of contracted liquefied natural gas (LNG) from Qatar. The missing LNG supply has forced power plants with a combined capacity of roughly 5,000 MW to remain idle.
## Scale of the shortfall
The unavailable LNG volume represents a significant portion of the country’s imported fuel basket for power generation. Without the expected deliveries, the National Transmission and Despatch Company (NTDC) has been unable to meet scheduled generation targets, prompting the Ministry to impose rolling blackouts during peak night‑time demand.
## Immediate actions and outlook
The ministries said they are engaging with the Qatar Petroleum Company to resolve the supply issue and are exploring alternative short‑term arrangements, including spot market purchases and potential use of domestic gas reserves. No specific timeline was provided for when full generation capacity will be restored.
## Potential market impact
The power sector’s earnings are expected to be pressured in the current quarter as reduced generation translates into lower revenues for independent power producers (IPPs) and state‑owned utilities. Investors are advised to monitor developments closely, especially any announcements regarding LNG procurement or emergency power imports.
## Shariah considerations
The situation does not raise any specific Shariah compliance concerns; the focus remains on the financial performance of the affected companies.