Circular debt continues to swell despite Rs167bln payment

[Mentee]

Apko bana detey hein ap logon to double price par bijli bech kar dikhao

Taqreeray suno bs galla'n da gaalar

 

[Zibago]

Taqreeray suno bs galla'n da gaalar

AB batao na double rate par becho gay?

 

[muhammadhafeezmalik]

An article which offeres a much more rational perspective.

Energy sector circular debt shows contained growth in FY21

ISLAMABAD: The country's energy sector circular debt reached Rs 2.28 trillion in FY 2020-21 from Rs 2.15 trillion in...

www.brecorder.com

The point is the damage done to energy sector was massive due to negligance, incompetence and rampart corruption by previous regimes. There is no short term solution to it, but the signs that we are able to contain it through various instruments inspite of continued exponential increase in capacity payments, exchange rate imbalances and the ever increasing interest payments on the already accumulated amount is an indication we are moving in the right direction.


The reasons of circular debt, the faults and frauds in energy projects dealing has been discussed to death. No point explaining it again and again to some imbeciles.

The immediate solution provided by IK before elections was to stop negligance, incompetence and rampart corruption. If the problem is still there so is all the ills of previous regimes still there. If the problem has increased than the previous regimes so all the ills of previous regimes have also increased. Simple.

 

[muhammadhafeezmalik]

AB batao na double rate par becho gay?

یہ کہتے کہتے بجلی کی قیمتیں دگنی سے زیادہ کردیں آپ کا خسارہ پورا نہیں ہو رہا

 

[Patriot forever]

The immediate solution provided by IK before elections was to stop negligance, incompetence and rampart corruption. If the problem is still there so is all the ills of previous regimes still there. If the problem has increased than the previous regimes so all the ills of previous regimes have also increased. Simple.

Bro some problems are not easy to solve and sometimes the only option is to mitigate the damage. Take reko dik as an example.

 

[ziaulislam]

Despite paying Rs167 billion, the monster of circular debt touched Rs2.28 trillion billion mark during the last fiscal year 2020-21 ending on June 30, 2021, The News has learnt.

The government claimed the pace of accumulation of circular debt has reduced significantly as it went up by “only” Rs130 billion in 2020-21 against a surge of Rs538 billion in financial year 2019-20.

The pace of accumulation was reduced by almost 75 percent in the last fiscal year 2020-21.

The monster of circular debt ballooned almost a trillion rupees in last three years as it stood at Rs1,612 billion in 2018-19, Rs2,150 billion in 2019-20.

A meeting of the Cabinet Committee on Energy (CCOE), held under the chair of Federal Minister for Planning, Development, and Special Initiatives Asad Umar on Friday, was told that circular debt increased to Rs1,245 billion in last fiscal year 2020-21 against Rs1,038 billion in 2019-20.

The payables to power producers stood at Rs105 billion in 2020-21 and the amount parked in Power Holding Limited (PHL) stood at Rs930 billion in 2020-21 against Rs1,007 billion in 2019-20.

The circular debt increased Rs297 billion in 2020-21 compared to a surge of Rs538 billion in 2019-20. But the government made payments of Rs77 billion through available fiscal space and another payment of Rs90 billion on PHL principal repayments so the stocks in circular debt decreased Rs167 billion. It increased Rs130 billion.

Power Division also detailed the committee on the Circular Debt Report from July 2020 to June 2021. The committee noted that the circular debt build-up had substantially reduced in comparison to the previous year. The Committee appreciated the improvement in the recoveries and directed Power Division to continue with its efforts for reduction of circular debt.

The meeting was attended by Minister for Interior, Minister for Energy, Minister for Maritime Affairs, SAPM on Power, Petroleum & Revenue. Representatives of regulatory authorities and senior officials of Ministries/Divisions also participated in the meeting.

Circular debt continues to swell despite Rs167bln payment

ISLAMABAD: Despite paying Rs167 billion, the monster of circular debt touched Rs2.28 trillion billion mark during the last fiscal year 2020-21 ending on June 30, 2021, The News has learnt.The...

www.thenews.com.pk

Good job..only 137 billion

Not bad since we started with 450b/yr with high capacity payments coming up in 2018 on wards

Hopoefully will drop to zero but will depend upon purely on on gas prices(that are all time high) and reneg. Of capacity payments

With new gas deals cost of gas will come down
Whats the progress on reneg. Deals is yet to be seen

Lets see if PTI can clean all the shit on floor(half done) before the queen comes in to shit more on the floor

یہ کہتے کہتے بجلی کی قیمتیں دگنی سے زیادہ کردیں آپ کا خسارہ پورا نہیں ہو رہا

Can you tell me prices of electricity

They have gone DOWN IN CENTS NOT UP

You are educatd you know we pay in cents right?

 

[Zibago]

یہ کہتے کہتے بجلی کی قیمتیں دگنی سے زیادہ کردیں آپ کا خسارہ پورا نہیں ہو رہا

Market price par bechi to log chekhein marein gay
Mian Mansha ko azazney par jo deal kien wo hamain bhugatein parey gi baki baboon league walon ko kia hy kabhi Mohib ko abu banatey hein to kabhi Modi ko

 

[VCheng]

Market price par bechi to log chekhein marein gay

So what? The government cannot afford the subsidies that people are used to, it is as simple as that.

 

[Zibago]

So what? The government cannot afford the subsidies that people are used to, it is as simple as that.

You worry about proud boys vs antifa damaging public and private property

 

[VCheng]

You worry about proud boys vs antifa damaging public and private property

Right, such whataboutery will help the gornamint of Pakistan pay energy subsidies it simply cannot afford to keep the peoples of Pakistan happy. Got it.

 

[muhammadhafeezmalik]

Market price par bechi to log chekhein marein gay
Mian Mansha ko azazney par jo deal kien wo hamain bhugatein parey gi baki baboon league walon ko kia hy kabhi Mohib ko abu banatey hein to kabhi Modi ko

Agreements were signed with Mian Mansha by Musharraf.

Nishat Power Limited (NPL) is a public limited company incorporated in February 2007, formed under the Power Policy 2002 as an Independent Power Producer (IPP). The company is a subsidiary of Nishat Mills Limited. It is currently listed on the Pakistan Stock Exchange Limited.

NISHAT POWER | Nishat Power Limited

nishatpower.com

Nishat Chunian Power Limited (NCPL) is a public limited company established in 2007, as a power generation project commissioned under the 2002 Power Policy of GOP. It has a 25 year ‘take or pay’ agreement with National Transmission & Dispatch Company Limited (NTDCL). The plant started its commercial operations in July 2010.


Turnover of NCPL for FY 2020 is recorded at US$ 77.17 million while net profit is recorded at US$ 27.29 million.


The company is an active member of Independent Power Producer Association (IPPA) and is listed on the Pakistan Stock Exchange (www.psx.com.pk).

Power Generation

www.nishat.net

Good job..only 137 billion

Not bad since we started with 450b/yr with high capacity payments coming up in 2018 on wards

Hopoefully will drop to zero but will depend upon purely on on gas prices(that are all time high) and reneg. Of capacity payments

With new gas deals cost of gas will come down
Whats the progress on reneg. Deals is yet to be seen

Lets see if PTI can clean all the shit on floor(half done) before the queen comes in to shit more on the floor

Can you tell me prices of electricity

They have gone DOWN IN CENTS NOT UP

You are educatd you know we pay in cents right?

The high rate of electricity theft is a major reason for the rising circular debt and high rates.
The average rate of electricity theft is 17%.

The power distribution companies are paying higher losses.
However, the losses of the Islamabad Electric Supply Company (IESCO) are the lowest at 8.80% compared with other distribution companies.

Hesco is facing electricity theft and losses at 28%. The Quetta Electric Supply Company (Qesco) also faces losses of 22.60%.

The power distribution companies in the two provinces – Khyber-Pakhtunkhwa and Sindh-- face even higher electricity theft and losses.

The Peshawar Electric Supply Company (Pesco) in K-P faces losses of 35.10%.

Power plants are supplying electricity to the Central Power Purchasing Agency (CPPA) at 100 % capacity.

However, a major chunk of electricity disappears while distributing to the consumers due to electricity theft and low recovery of electricity bills.

The power distribution companies need to recover 100% of bills from the consumers to avoid the build-up of circular debt.

Since 2002, different governments have been making efforts to improve the recovery of electricity bills. But they have not succeeded so far.

Recovery of electricity bills stood at 89.6% in the year 2013 that went up to 94.1% in the year 2016-17.

However, it dropped again to 90.1 percent in the year 2018 when the PTI government came into power.

It has remained at 90.3% during the tenure of the present government.