Shabaz Sharif
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ISLAMABAD: Amid the unprecedented power shortages of over 7,000MW, Pakistan’s power sector receivables have risen to a whopping Rs513.368 billion in the first 10 months of the current financial year 2013-14, threatening collapse of the entire system.
According to the latest documents on receivables as of April 2014 available with The News, the provinces are required to pay Rs87.256 billion that include Sindh’s Rs54.547 billion, KP Rs20.540 billion, Punjab Rs6.619 billion, Balochistan Rs5.550 billion and the AJK’s Rs36.693 billion.
The shocking fact is that the government has failed to collect electricity bills from private sector consumers as this sector has emerged as the biggest defaulter owing a mammoth Rs345.386 to the Pakistan Electric Power Company (Pepco).
The document also unveils that the domestic sector in Fata is required to pay Rs32 billion, which has also been included in the head of private sector consumers.
Finance Minister Ishaq Dar said that the government was going to implement a special plan next week to improve the recovery of electricity bills as the finance ministry had no money to clear the circular debt that had risen to over Rs300 billion.
The prime minister is worried and annoyed over the appalling situation of power sector and it is clear that the Ministry of Water and Power is bound to speedily recover these bills and clear the circular debt. However, the finance ministry will also depute a senior official to help the Ministry of Water and Power to recover the dues.
Dar said that he was going to soon pay more to the Ministry of Water and Power from the head of inter-tariff differential subsidy so that PSO’s imminent default could be averted.
Meanwhile, the IPPs have reduced their power generation by over 1,600MW despite the fact that they have the capacity to generate 8,500MW of electricity. They have reduced their generation just because of non-availability of the required liquidity. They have no money to pay the interest to banks on loans they have borrowed to purchase the fuel. The government owes Rs210 billion to the IPPs and if the situation continues unabated, then the IPPs may halt their operations exposing the country to more loadshedding, according to Adbullah Yousaf, the Chairman of Advisory Council of the IPPs.
Meanwhile, the Pakistan State Oil is on the verge of being declared a defaulter as one of its letters of credit (L/C) is going to expire on Friday, June 13.The dues of PSO have also swelled to Rs130 billion as of today that the power sector has to pay to the state-run entity.
“We have supplied furnace oil of Rs160 billion to the power sector by June 9, 2014 in the current financial year and in return PSO miserably lacks the liquidity as the power sector is not paying for the fuel it has used so far,” a senior official in PSO told The News.“This situation has exposed PSO with zero liquidity because of which it has no fiscal space to place more orders to import furnace oil for power generation.”
Power sector close to collapse under Rs513.37 billion debt - thenews.com.pk
AJK is small area, ytf their debt is Rs 36 billion?
According to the latest documents on receivables as of April 2014 available with The News, the provinces are required to pay Rs87.256 billion that include Sindh’s Rs54.547 billion, KP Rs20.540 billion, Punjab Rs6.619 billion, Balochistan Rs5.550 billion and the AJK’s Rs36.693 billion.
The shocking fact is that the government has failed to collect electricity bills from private sector consumers as this sector has emerged as the biggest defaulter owing a mammoth Rs345.386 to the Pakistan Electric Power Company (Pepco).
The document also unveils that the domestic sector in Fata is required to pay Rs32 billion, which has also been included in the head of private sector consumers.
Finance Minister Ishaq Dar said that the government was going to implement a special plan next week to improve the recovery of electricity bills as the finance ministry had no money to clear the circular debt that had risen to over Rs300 billion.
The prime minister is worried and annoyed over the appalling situation of power sector and it is clear that the Ministry of Water and Power is bound to speedily recover these bills and clear the circular debt. However, the finance ministry will also depute a senior official to help the Ministry of Water and Power to recover the dues.
Dar said that he was going to soon pay more to the Ministry of Water and Power from the head of inter-tariff differential subsidy so that PSO’s imminent default could be averted.
Meanwhile, the IPPs have reduced their power generation by over 1,600MW despite the fact that they have the capacity to generate 8,500MW of electricity. They have reduced their generation just because of non-availability of the required liquidity. They have no money to pay the interest to banks on loans they have borrowed to purchase the fuel. The government owes Rs210 billion to the IPPs and if the situation continues unabated, then the IPPs may halt their operations exposing the country to more loadshedding, according to Adbullah Yousaf, the Chairman of Advisory Council of the IPPs.
Meanwhile, the Pakistan State Oil is on the verge of being declared a defaulter as one of its letters of credit (L/C) is going to expire on Friday, June 13.The dues of PSO have also swelled to Rs130 billion as of today that the power sector has to pay to the state-run entity.
“We have supplied furnace oil of Rs160 billion to the power sector by June 9, 2014 in the current financial year and in return PSO miserably lacks the liquidity as the power sector is not paying for the fuel it has used so far,” a senior official in PSO told The News.“This situation has exposed PSO with zero liquidity because of which it has no fiscal space to place more orders to import furnace oil for power generation.”
Power sector close to collapse under Rs513.37 billion debt - thenews.com.pk
AJK is small area, ytf their debt is Rs 36 billion?
