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Circular debt showing Rs33bn monthly growth

FOOLS_NIGHTMARE

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Pakistan’s energy sector circular debt flow is still soaring with an average growth of about Rs33 billion per month recorded during the first six months (July-December) 2021-22, well-informed sources told Business Recorder.

Total circular debt has reached Rs 2.476 trillion during first six months of current fiscal year as compared to Rs 2.303 trillion in the same period of 2020-21, with total growth of Rs 196 billion as compared to Rs 152 billion during July-December 2020-21.

Of the total amount Rs 1.494 trillion was related to power producers, Rs 79 billion to Gencos payable to fuel suppliers and Rs 904 billion is parked in Power Holding Limited (PHL).

Circular debt, which is a persistent headache for the government and send an unpleasant message to the International Financial Institutions and local banks is a product of incompetence, unbridled theft, high losses, rampant corruption and other factors.

Power sectors’ average T&D losses are 17 per cent against targets of 13.4 per cent. However, Power Division is determined to bring circular debt down to Rs 1.880 trillion at the end of current fiscal year.

Circular debt may hit Rs2.7trn mark

According to sources unpaid subsidies have reduced by Rs 8 billion during the first six months of current fiscal year against growth of Rs 77 billion in the same period last year. The volume of unbudgeted subsidy was Rs 17 billion during this period from negative Rs 5 billion in the same period last fiscal year.

The IPPs interest charges on delayed payments increased to 67 billion July-December 2021-22, against Rs42 billion in the comparable period of the year before, posting a growth of over 60 per cent.

The pending generation cost (QTA+ FCA) has reduced to Rs 100 billion during July-December) 2021-22 against Rs 119 billion during corresponding period of FY 2020-21, showing a decline of 16 percent. The volume of non-payment by K-Electric stood at Rs 67 billion during the first six months of current fiscal year against Rs 40 billion during the same period last year, indicating an increase of Rs 27 billion in non-payment, with an average growth of Rs 11.2 billion per month.

The amount of Discos inefficiency was recorded at Rs 46 billion from Rs 8 billion during this period last year, showing an increase of 475 per cent.

The sources maintained that Discos under recoveries recorded at 66 billion during July-December 2021-22 as compared to negative 37 billion. However, prior year recovery has declined toRs 8 billion from 99 billion. The amount of PHL markup remained unchanged at Rs 26 billion.

The unbudgeted subsidy including AJK and KE is around Rs 75 billion (AJK Rs 46 and KE Rs 29 billion). An amount of Rs 292 billion is receivable from KE as on June 2021 due to subsidy dispute between KE and GoP. The PHL and IPPs stock also reflect projected adjustment/ payment through federal budget: (i) repayment of Rs 130 billion PHL debt; and (ii) the settlement of outstanding arrears of Rs 311 billion to IPPs in FY 22.

 

Turingsage

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You are preaching to the deaf here and are likely to get banned.
Remember it is all due to Nawaz and Dar. They have been increasing the debt over last 3 years from London/Mars and has nothing to do with the chosen one.
 

ziaulislam

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You are preaching to the deaf here and are likely to get banned.
Remember it is all due to Nawaz and Dar. They have been increasing the debt over last 3 years from London/Mars and has nothing to do with the chosen one.
No its due to cheap deals signed by nawaz sharif with 25% ROI
 

Turingsage

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Thank you nawaz sharif

cap-1.png

I hope you are clear in understanding that the yearly rise is due to accruing non-payment of previous years capacity payment. Its rising because IK fails to maintain even the minimum necessary to keep the rising figure in check.
He wont renegotiate because he is in thrall of the Chinese who cannot be denied anything.
The Chinese have made it clear no competitive bidding for any projects by local companies. All contracts MUST go to the Chinese and NO ONE ELSE.
Read up the terms IK just agreed to in China on his recent visit.
The Chinese own you partly, IK is making sure you are owned by the Chinese completely.
 

ziaulislam

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I hope you are clear in understanding that the yearly rise is due to accruing non-payment of previous years capacity payment. Its rising because IK fails to maintain even the minimum necessary to keep the rising figure in check.
He wont renegotiate because he is in thrall of the Chinese who cannot be denied anything.
The Chinese have made it clear no competitive bidding for any projects by local companies. All contracts MUST go to the Chinese and NO ONE ELSE.
Read up the terms IK just agreed to in China on his recent visit.
The Chinese own you partly, IK is making sure you are owned by the Chinese completely.
No
Please go read nepra documents they are online

I posted all this looming crisis here back in 2017-18
 

Flash_Ninja

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I hope you are clear in understanding that the yearly rise is due to accruing non-payment of previous years capacity payment. Its rising because IK fails to maintain even the minimum necessary to keep the rising figure in check.
He wont renegotiate because he is in thrall of the Chinese who cannot be denied anything.
The Chinese have made it clear no competitive bidding for any projects by local companies. All contracts MUST go to the Chinese and NO ONE ELSE.
Read up the terms IK just agreed to in China on his recent visit.
The Chinese own you partly, IK is making sure you are owned by the Chinese completely.

I think you've inhaled too much cow dung fumes. First you need to decide which dumb indian narrative you want to peddle, is it about CPEC in general or is it about Power generation which is what this article is talking about?
 

hydrabadi_arab

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PTI failed to bring improvements in theft, and recovery of bills. Fact! PTI cannot get away with blaming previous govt.

Plus in country like Pakistan capacity charges are inevitable. We consume 2-3 times more electricity in summer then in winter.

Need to increase consumption in winter by replacing gas heaters etc This year govt discounted electricity bills in winter. This should continue to encourage switch.
 

FOOLS_NIGHTMARE

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PTI failed to bring improvements in theft, and recovery of bills. Fact! PTI cannot get away with blaming previous govt.
Also deliberately running costly diesel and furnace oil plants to benefit the govt cronies and not making tangible efforts to run cheaper LNG and Coal-based plants.
 

Zibago

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View attachment 814641
Pakistan’s energy sector circular debt flow is still soaring with an average growth of about Rs33 billion per month recorded during the first six months (July-December) 2021-22, well-informed sources told Business Recorder.

Total circular debt has reached Rs 2.476 trillion during first six months of current fiscal year as compared to Rs 2.303 trillion in the same period of 2020-21, with total growth of Rs 196 billion as compared to Rs 152 billion during July-December 2020-21.

Of the total amount Rs 1.494 trillion was related to power producers, Rs 79 billion to Gencos payable to fuel suppliers and Rs 904 billion is parked in Power Holding Limited (PHL).

Circular debt, which is a persistent headache for the government and send an unpleasant message to the International Financial Institutions and local banks is a product of incompetence, unbridled theft, high losses, rampant corruption and other factors.

Power sectors’ average T&D losses are 17 per cent against targets of 13.4 per cent. However, Power Division is determined to bring circular debt down to Rs 1.880 trillion at the end of current fiscal year.

Circular debt may hit Rs2.7trn mark

According to sources unpaid subsidies have reduced by Rs 8 billion during the first six months of current fiscal year against growth of Rs 77 billion in the same period last year. The volume of unbudgeted subsidy was Rs 17 billion during this period from negative Rs 5 billion in the same period last fiscal year.

The IPPs interest charges on delayed payments increased to 67 billion July-December 2021-22, against Rs42 billion in the comparable period of the year before, posting a growth of over 60 per cent.

The pending generation cost (QTA+ FCA) has reduced to Rs 100 billion during July-December) 2021-22 against Rs 119 billion during corresponding period of FY 2020-21, showing a decline of 16 percent. The volume of non-payment by K-Electric stood at Rs 67 billion during the first six months of current fiscal year against Rs 40 billion during the same period last year, indicating an increase of Rs 27 billion in non-payment, with an average growth of Rs 11.2 billion per month.

The amount of Discos inefficiency was recorded at Rs 46 billion from Rs 8 billion during this period last year, showing an increase of 475 per cent.

The sources maintained that Discos under recoveries recorded at 66 billion during July-December 2021-22 as compared to negative 37 billion. However, prior year recovery has declined toRs 8 billion from 99 billion. The amount of PHL markup remained unchanged at Rs 26 billion.

The unbudgeted subsidy including AJK and KE is around Rs 75 billion (AJK Rs 46 and KE Rs 29 billion). An amount of Rs 292 billion is receivable from KE as on June 2021 due to subsidy dispute between KE and GoP. The PHL and IPPs stock also reflect projected adjustment/ payment through federal budget: (i) repayment of Rs 130 billion PHL debt; and (ii) the settlement of outstanding arrears of Rs 311 billion to IPPs in FY 22.

Aik jagah ro rahey ho bijli mehngi doji jagah circular debt
 

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