Circular debt soars to Rs2.327 trillion in 2020-21,and set to reach Rs4.00 trillion in the next few years

[FOOLS_NIGHTMARE]

Circular debt soars to Rs2.327 trillion in 2020-21

Report by power division notes an increase of Rs177bn in circular debt during 2020-21 compared to Rs541bn surge in fiscal 2019-20.

www.dawn.com

Inaction may double circular debt, says PM’s aide

Inaction may double circular debt, says PM’s aide

The amount has already risen by more than 100pc under PTI govt.

www.dawn.com

A HARD PILL TO SWALLOW; Circular debt to touch Rs. 4,000 billion by 2025 for Pakistan

www.globalsolarcouncil.org

Circular debt can rise from Rs2,219bn to 4,000bn by 2025: study

The economy can face a tremendous setback if the circular debt in the power sector spirals out of control, increasing from Rs2,219 billion to Rs4,000 billion until 2025, said a study conducted by Engro Corporation.The study, titled...

www.geo.tv

All that the Pakistanis see is a regular cheap talk by the ministers for the last few years, nothing tangible has been achieved so far. The burden of mounting circular debt will be dropped on the ravaged consumer with no results and high load shedding.

 

[VCheng]

All that the Pakistanis see is a regular cheap talk by the ministers for the last few years, nothing tangible has been achieved so far. The burden of mounting circular debt will be dropped on the ravaged consumer with no results and high load shedding.

I have said this many times already, but it bears repeating: ANYBODY (no matter which party or uniform) who says they can get rid of loadshedding in a term or three, is LYING. It will take decades of work to right the power sector, and we haven't even started on the correct path yet.

 

[FOOLS_NIGHTMARE]

we haven't even started on the correct path yet.

What a colossal waste of time I may add.

 

[FOOLS_NIGHTMARE]

The time bomb of circular debt is ticking, don't see any near term solutions.

Circular debt management: New plan to be submitted to IMF, WB

ISLAMABAD: The Power Division is to submit new Circular Debt Management Plan (CDMP) to the International Monetary...

www.brecorder.com

Cutting Gordian Knot of Circular Debt

Nisar A. Circular debt, a very heated debate among economists of Pakistan, is becoming a colossal issue on every coming day. It is cross-indebtedness of

nation.com.pk

 

[blueazure]

PTI fanboys

report in please

-----------

how will the govt control circular debt ?

 

[muhammadhafeezmalik]

PTI fanboys

report in please

-----------

how will the govt control circular debt ?

They will increase the tariff, will not stop electricity theft, will not collect billed amount, will not improve transmission deficiency, will not privatise loss making DISCOs.

 

[kingQamaR]

It the people at the top are stealing monies, then why are we expecting a average family pay there bills for.

 

[blueazure]

They will increase the tariff, will not stop electricity theft, will not collect billed amount, will not improve transmission deficiency, will not privatise loss making DISCOs.

you forgot to add

- will not /have not ended capacity tarriffs

 

[FOOLS_NIGHTMARE]

- will not /have not ended capacity tarriffs

They will never speak the truth.

 

[muhammadhafeezmalik]

you forgot to add

- will not /have not ended capacity tarriffs

They could not even set up one new LNG terminal/power plant without capacity tariffs.

 

[TheDarkKnight]

PTI fanboys

report in please

-----------

how will the govt control circular debt ?

You are right, Nawaz sharif and Zardari have killed us by leaving all these debts and agreements. IK has no solution for this colossal problem - I think the solution that OP wants is to bring back the ones reponsible for the mess back in power.

They will increase the tariff, will not stop electricity theft, will not collect billed amount, will not improve transmission deficiency, will not privatise loss making DISCOs.

These problems preexisted before the govt. The issue is not just thefts and inefficiency. PMLN tenure saw a lot of new generation plants, thermal based plants which can be setup quickly- and like all the previous agremeent we signed up for all these plants with capacity charges (use it or lose it) rather than how much we consume. But the double whammy is that no upgrades were made to transmission or distribution so even now we want to consume it our system cannot handle the power load, and bill collection was always at a loss as usual. So we have just plants sitting there doing nothing and adding to the yearly charges - Now what solution PMLN has for the problem they themselves created in the first place? Oh wait first you need to help India against Pakistan Army - thats more important.

 

[TheDarkKnight]

you forgot to add

- will not /have not ended capacity tarriffs

How can you end capacity tarrifs? They are in agreements signed by PMLN govt, which took all the credit for adding 10kMW capacity.

 

[blueazure]

How can you end capacity tarrifs? They are in agreements signed by PMLN govt, which took all the credit for adding 10kMW capacity.

o to bhai kon sa aasmani saheefa hain ye capacity agreements ????

the circular debt accrued as a result of these agreements will break the bone of our expenses and you cannot terminate an agreement ! wah wah wah,,, superb pti logic bhai

------
all these capacity agreements were based on fraud, lies , deceit . no where in the world does purchaser pay for capacity

NAB ?

 

[TheDarkKnight]

o to bhai kon sa aasmani saheefa hain ye capacity agreements ????

the circular debt accrued as a result of these agreements will break the bone of our expenses and you cannot terminate an agreement ! wah wah wah,,, superb pti logic bhai

------
all these capacity agreements were based on fraud, lies , deceit . no where in the world does purchaser pay for capacity

NAB ?

Not asmani saheefay. You can terminate agreements as per the termination clauses, and those most probably has clauses to save the investors. See Reko Diq case example - its a 6bln dollar fine now.
Now this is not a PTI problem - its Pakistans issue. The only reasonable solution I see is to:
1) Increase and utilize your capacity to the full. This requires increasing and growing the industry. With low reserves and IMF knee on our neck difficult, hope CPEC projects and investments become viable.

2) Somehow plead and re negotiate these idiotic agreements signed by PMLN and PPP. Explain them this is akin to slaying the goose laying golden eggs, ie it is not sustainable for the country’s economy so whats the point !!

3) Investigate all these companies and agreements, there definitely is corruption and breach of agreement somewhere. Present these proofs to the IPPs and tell them to either revise the agreements and behave from now on, or we can sue you in ICJ - IK govt was able to solve one such billion dollar fine (again received during the competent govt of NS) of a Turkish Company by utilizing ISIs help - once we showed them the proofs, Turks just walked away from the fine citing “in name of brotherhood”
Link: https://www.dawn.com/news/1514885
Now an approach like this requires clean and independent and competent institutions, and as we all know PMLN and PPP never created them in their tenures as that suits the way the make and launder money. PTI definitely dowsnt have the capacity, the mandate (no of seats), and time to do this. Maybe a commission of highly competent officers empowered by some ordinance.

4) Pray somehow oil prices fall (Iran-USA re approchment) and PTI govt also gets the same energy price that PMLN govt enjoyed. But that then again it is a temporary relief, but will give us time to fix issues properly.

5) The structural reforms that are badly needed. Requires investment in dist and transmission. Requires a political cost - people who have never paid bills will be asked to pay now. Who would want to do this an year before elections?

6) Send Molana Tarik Jamil to all IPP owners.

 

[AZ1]

Not asmani saheefay. You can terminate agreements as per the termination clauses, and those most probably has clauses to save the investors. See Reko Diq case example - its a 6bln dollar fine now.
Now this is not a PTI problem - its Pakistans issue. The only reasonable solution I see is to:
1) Increase and utilize your capacity to the full. This requires increasing and growing the industry. With low reserves and IMF knee on our neck difficult, hope CPEC projects and investments become viable.

2) Somehow plead and re negotiate these idiotic agreements signed by PMLN and PPP. Explain them this is akin to slaying the goose laying golden eggs, ie it is not sustainable for the country’s economy so whats the point !!

3) Investigate all these companies and agreements, there definitely is corruption and breach of agreement somewhere. Present these proofs to the IPPs and tell them to either revise the agreements and behave from now on, or we can sue you in ICJ - IK govt was able to solve one such billion dollar fine (again received during the competent govt of NS) of a Turkish Company by utilizing ISIs help - once we showed them the proofs, Turks just walked away from the fine citing “in name of brotherhood”
Link: https://www.dawn.com/news/1514885
Now an approach like this requires clean and independent and competent institutions, and as we all know PMLN and PPP never created them in their tenures as that suits the way the make and launder money. PTI definitely dowsnt have the capacity, the mandate (no of seats), and time to do this. Maybe a commission of highly competent officers empowered by some ordinance.

4) Pray somehow oil prices fall (Iran-USA re approchment) and PTI govt also gets the same energy price that PMLN govt enjoyed. But that then again it is a temporary relief, but will give us time to fix issues properly.

5) The structural reforms that are badly needed. Requires investment in dist and transmission. Requires a political cost - people who have never paid bills will be asked to pay now. Who would want to do this an year before elections?

6) Send Molana Tarik Jamil to all IPP owners.

you wasting yout time with bughz imran guys and slave of pmln. They settle in UK and tell us look what PTi did. they are shamelesss ppl and cant see the truth who really destroyed the country

All agreements done by pmln and now they see oh look why they dont just end the agreement so that other party can go to international court and we get fine.

View attachment 760546

Circular debt soars to Rs2.327 trillion in 2020-21

Report by power division notes an increase of Rs177bn in circular debt during 2020-21 compared to Rs541bn surge in fiscal 2019-20.

www.dawn.com

Inaction may double circular debt, says PM’s aide

Inaction may double circular debt, says PM’s aide

The amount has already risen by more than 100pc under PTI govt.

www.dawn.com

View attachment 760547

A HARD PILL TO SWALLOW; Circular debt to touch Rs. 4,000 billion by 2025 for Pakistan

www.globalsolarcouncil.org

Circular debt can rise from Rs2,219bn to 4,000bn by 2025: study

The economy can face a tremendous setback if the circular debt in the power sector spirals out of control, increasing from Rs2,219 billion to Rs4,000 billion until 2025, said a study conducted by Engro Corporation.The study, titled...

www.geo.tv

All that the Pakistanis see is a regular cheap talk by the ministers for the last few years, nothing tangible has been achieved so far. The burden of mounting circular debt will be dropped on the ravaged consumer with no results and high load shedding.

So who did the agreement??