Summary Outstanding amount of Independent Power Producers (IPPs) has also augmented to over Rs200 bn.
ISLAMABAD (Dunya News)- Pakistan’s circular debt has transcended the limit set by International Monetary Fund (IMF) with amount reaching as high as Rs425 billion.
Likewise, outstanding amount of Independent Power Producers (IPPs) has also augmented to over Rs200 bn.
The key factor behind soaring circular debt is failure of distributing companies to stop the electricity theft whereas incessant production from low capacity furnace oil-run power plants is also piling up the debt amount.
On the other, Senate Standing Committee on finance has also raised objections regarding payment of Rs480 bn circular debts to IPPs back then in 2013 and has served final warning that the matter would be forwarded to National Accountability Bureau (NAB) if Power Division of the Ministry of Energy fails in submitting satisfactory reply against the objections of the audit department within two weeks.
The standing committee on finance had unanimously adopted the report of its sub-committee that conducted parliamentary investigation into alleged irregularities in the payments to IPPs.
While commenting on the unjustified payments, Senator Mohsin Aziz apprised attendants that payments worth Rs32 bn were made to IPPs in 2013 while country kept on witnessing 18-hour-long power cuts on daily basis.
“Payments were made without taking electricity in return”, Aziz added.
It is pertinent to mention that back then in 2013, Sharif-led federal govt had made outstanding payments of nearly Rs450 bn by suspending all relevant rules and regulations. The debt amassed during five-year tenure of Pakistan Peoples Party.
Published in Roznama Dunya, 13th December, 2017
