LAHORE: The power sector’s circular debt jum­ped to Rs2.65 trillion by the end of May from Rs2.25tr at the beginning of the previous fiscal year — a jump of Rs393 billion, or 18 per cent, in 11 months.

It was in stark contrast with figures of FY22, when the debt fell by Rs27bn, from Rs2.28tr at the start of the year to Rs2.25tr by the close, data from the energy ministry’s Power Division showed.

According to a docum­ent, the total payables to the power sector stood at 1.35tr, followed by Rs101bn to generation companies (Gencos) and Rs800bn as Pakistan Holding Limi­ted (PHL) debt in the fiscal year 2021-22.

However, fiscal 2023 saw a massive surge in the payables to power produ­cers, as it jumped to Rs1.77tr, whereas payables to Gencos increased to Rs110bn. However, the PHL debt dropped to Rs765bn.

In FY22, the budgeted but unreleased subsidies were reduced by Rs12bn, but they were increased to Rs72bn in the first 11 months (July to May) of 2022-23. Similarly, the unbudgeted or unclaimed subsidies were reduced by Rs133bn in the fiscal year 2022 but were rais­­ed by Rs34bn in July-May.

The independent po­­w­er producers’ (IPPs) inte­rest charges on delayed payment increased to Rs105bn in 2021-22 but dropped to Rs87bn by the end of May.

The markup paid on the IPPs’ claims by the PHL, which surged to Rs29bn in 2021-22, further jumped to Rs58bn. The pending generation cost — quarterly tariff adjustments (QTA) and fuel charge adjustments (FCA) — fell from Rs414bn to Rs171bn in the 11-month period.

The dues pending on the part of K-Electric fell from Rs107bn to Rs57bn, and the power distribution companies’ (Discos) losses due to inefficiency fell from Rs133bn to Rs125bn.

Published in Dawn, July 5th, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

In defamation’s name

In defamation’s name

It provides yet more proof that the undergirding logic of public authority in Pakistan is legal and extra-legal coercion rather than legitimised consent.

Editorial

Mercury rising
Updated 27 May, 2024

Mercury rising

Each of the country's leaders is equally responsible for the deep pit Pakistan seems to have fallen into.
Antibiotic overuse
27 May, 2024

Antibiotic overuse

ANTIMICROBIAL resistance is an escalating crisis claiming some 700,000 lives annually in Pakistan. It is the third...
World Cup team
27 May, 2024

World Cup team

PAKISTAN waited until the very end to name their T20 World Cup squad. Even then, there was last-minute drama. Four...
ICJ rebuke
Updated 26 May, 2024

ICJ rebuke

The reason for Israel’s criminal behaviour is that it is protected by its powerful Western friends.
Hot spells
26 May, 2024

Hot spells

WITH Pakistan already dealing with a heatwave that has affected 26 districts since May 21, word from the climate...
Defiant stance
26 May, 2024

Defiant stance

AT a time when the country is in talks with the IMF for a medium-term loan crucial to bolstering the fragile ...