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ISLAMABAD, Feb 27: For the first time in over a decade the overall system losses of Wapda and KESC have been reduced by about 1.7 per cent and 2.8 per cent respectively.
Official data on the performance of state-owned corporations provided to the International Monetary Fund (IMF) on Friday by the finance ministry suggest that overall system losses of Wapda were 21 per cent during the second quarter of the current fiscal year or 1.7 per cent less than the IMF target of 22.7 per cent.
The total power generation of Wapda, however, dropped to 14,840 Gwh against a target of 15,198 Gwh, showing a reduction of about two per cent. Due to better water availability, the share of thermal generation was 20.5 per cent less than the target whereas purchase of power from IPPs reduced by 37 per cent against the target.
Overall cash collection of Wapda amounted to Rs52.481 billion which is Rs5.6 billion higher than the target of Rs46.866 billion. This was possible due to increased inflow of non- operating revenues and recovery from private consumers on account of last quarter's spill over.
The cash outflows amounted to Rs47.2 billion which was Rs6.3 billion less than the IMF target of Rs5.35 billion mainly because of less power purchases from the IPPs and reduced cost of fuel than anticipated by the IMF and zero debt servicing to the government due to debt relief.
As a result, Wapda was able to reduce its liabilities towards fuel and power suppliers from Rs5.77 billion on September 2003 to Rs5.53 billion on December 31, showing a reduction in liabilities by four per cent.
KESC: Similarly, the transmission and dispatch losses of Karachi Electric Supply Company (KESC) stood at 33.9 per cent as against the IMF target of 36.7 per cent, showing a reduction of 2.8 per cent.
The Kesc's revenue increased by Rs806 million due to increase in its units billed to 1,930 Gwh as against the target of 1,839 Gwh and marginally higher average tariff.
The expenditure on cost of fuel increased by Rs375 million due to increase in price of gas and Rs13 million due to increase in the operation and maintenance cost over and above the targets. However, the expenditure on account of power purchases was decreased by Rs270 million from the targets due to less power purchases and more units generated by Kesc.
Total receipts of Kesc increased by Rs487 million more than those in the IMF target but its payments also decreased by Rs3.117 billion due to deferment of its liabilities towards fuel and power suppliers. The Kesc expenditure on system improvement was also only Rs238 million as against the IMF target of Rs857 million.
PAKISTAN RAILWAYS: The revenue receipts of Pakistan Railways registered a shortfall of Rs246.5 million during the second quarter of the current fiscal year.
This shortfall was mainly in freight revenue which mainly comes from the oil business which has shown a decline due to less import of oil. The decrease in import of oil was due to conversion of IPPs, cement and other industrial units to gas and coal. Transportation of oil through pipeline was another cause of shortfall in freight revenue.
PAKISTAN STEEL: Pakistan Steel achieved 100 per cent capacity utilisation in terms of steel production during the 2nd Quarter Oct-Dec 2003, which was more than seven per cent of the target of 93 per cent. The production of all items increased positively as against their targets.
Net sales and other income were projected at Rs5.803 billion for the quarter Oct-Dec 2003. The value of sales rose to Rs6.144 billion showing an increase of Rs341 million against the target for the Quarter under reference.
The Company earned a net profit of Rs1.036 billion against the target of Rs670 million during the quarter Oct-Dec 2003, which shows an increase of Rs366 million against the target.
PIA: PIA had a projected total revenue of Rs12.251 billion for the fourth quarter of the calender year 2003 but generated net revenue of Rs12.693 billion surpassing the target by Rs442 million.
PIA had total operating cost of Rs10.732 billion for the fourth quarter. However, due to increase in revenue and increase in fuel prices and maintenance cost, the Airline ended up the quarter with total operating cost of Rs11.232 billion which means an increase of Rs500 million.
The corporation had estimated a profit of Rs844 million for the 4th quarter but earned pre-tax profit of Rs860 million during the quarter. The Airline profit for the whole year 2003 works out to Rs3.291 billion which is slightly more than the target of Rs3.275 billion.
The airline concluded agreement for leasing of six used A-310 Aircraft and had targeted induction of four planes in fourth quarter but only one A-310 Aircraft could be inducted in the fleet.
The remaining aircraft will join the fleet in the year 2004. Hence, the targets given for Capital Expenditure and Long Term Loans could not be met during the quarter.
