ISLAMABAD: The federal government has entered 2018 with monster of round debt of Rs441 billion in energy sector which is destined to create the money circulate state of affairs in future that may end in energy outages not due to the non-availability of energy however due to the liquidity disaster, prime officers at Energy Division advised The Information.
In response to Zargham Eshaq Khan, joint secretary (energy), the round debt stands at Rs441 billion; nevertheless, the related mandarins claimed that round debt has swelled to over Rs520 billion. The loans and liabilities of over Rs400 billion of energy sector have been parked in PHPL (Energy Holding Firm Restricted) and if the PHPL loans are included then the round debt factually stands at Rs920 billion. The facility sector receivables have surged as much as Rs850 billion.
Little question the incumbent regime has added up to now 7,500 MW of electrical energy within the system and by subsequent summer time the brand new addition of electrical energy will go as much as 11000MW. So there can be no load shedding on account of electrical energy provide dearth, however countrymen might face the curse of outages within the wake of liquidity disaster being emerged out of unbridled round debt.
The federal government in 2013 on the very outset of its tenure retired the then round debt of Rs480 billion, however on account of the dangerous governance and failure in restoration of billed electrical energy quantity, the round debt has once more emerged and can proceed to hang-out the brand new authorities after polls.
In response to the paperwork out there with The Information, the federal government is meant to pay the overdue quantity of Rs218 billion of IPPs (unbiased energy tasks), Rs279.four billion to Pakistan State Oil (PSO).This example has irked the incumbent federal minister for energy Mr Awais Leghari. In the meantime PSO’s financial miseries have additional multiplied as its receivables have touched new excessive of Rs321.5 billion exposing the entity to liquidity disaster.
In line with the PSO monetary sheet displaying payables and receivables as of January 1, 2018 energy sector owes Rs279.four billion to PSO, PIA Rs15.eight billion and Sui Northern is required to pay Rs16.5 billion. The monetary sheet exhibits that one other lure of round debt is being emerged for PSO due to LNG sector.
As of as we speak, PSO has positioned its demand with Finance Ministry in search of the speedy launch of Rs60 billion to retire the present letter of credit (L/Cs). The monetary sheet of PSO additionally unfolds that energy sector on account of delay in making cost should pay mammoth quantity of Rs70.6 billion within the head of late cost surcharge. Although the regulator (NEPRA) has accommodated the inefficient energy sector by growing the permissible losses as much as sixteen.2 % and permitting the passing of the dangerous debt and capability expenses to the shoppers, but the facility sector is just not sustainable to thrive due to inefficiencies.
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