Fuel, power shortage looms as oil stocks plummet

[Capt.Popeye]

This is a strange problem with Pakistan..I was thinking it should be other way around...How come low oil price will make your debt more???

This is pakistan, after all.

 

[nvKyleBrown]

Bechare Malik unki Raksha kare

Sorry, neither I nor Google translate know that language.

 

[Daneshmand]

He said he was advocating minimum utilisation of furnace oil for power generation because it was not a wise approach to generate expensive power.

Well, right now it is becoming cost effective to generate electricity by furnace oil since crude is hovering around 40 dollars a barrel. A combined cycle furnace power plant would easily beat any other form of electricity generation except perhaps coal.

 

[ziaulislam]

ironically the PSO chief warned 3 weeks back that this can happen infact he said it will happen and the news was reported all over the media but PML N govt was sleeping than..now the poor people who were sacked are not even responsible for this...

as said many times before cosmetic work on power sector will not solve our problem(by paying off circular debt with more debt from local banks as PML N did it before!). govt needs to get recoveries.

the reason for fuel shortage is PSO defaulted due to non payments from electric companies which in turn are not paying due to receivables of over 400 billion rupees from private sector and circular debt of over 581 billion rupees.
ironically Mr. DAR HAS STOP SAYING HE PAID OFF CIRCULAR DEBT, because the debt is now more than what it was during PPPP era and recoveries have fallen.

in nutshell current govt statically has performed way worse than PPPP govt in the power sector especially the receivables.