ISLAMABAD, Jan 29: A high-level meeting here on Tuesday decided that Sindh government should clear its over Rs4 billion dues to Wapda by February 15, failing which the federal government will make at source deduction.

Official sources said the meeting, which was presided over by Finance Minister Shaukat Aziz and also attended by Wapda chairman, was of the view that time has come when Wapda’s receivables should be allowed to be recovered from the provinces, including Sindh, so that the funding problems of the organization could be reduced.

The finance minister directed that backlog of Wapda’s receivables should be cleared by February 15.

On the occasion Wapda chairman provided various details for further improving the performance of his organization.

President Gen Pervez Musharraf recently directed all four governors of the provinces to clear Rs36 billion provincial electricity dues immediately and reconcile disputed amounts with Wapda within 90 days of bill issue date.

Of the total Rs36 billion, Wapda receivables towards four provinces amounted to Rs26 billion and Rs10 billion to Karachi Electric Supply Corporation. Huge receivables had created cash flow problem for Wapda.

Wapda chairman told the meeting that the organization had to borrow high cost short-term loans to meet its Rs36 billion cash deficit. Short-term borrowing till last month and now payable this year amounted to Rs6 billion while it has to service Rs15 billion Wapda bonds.

Another Rs8-9 billion are payable to independent power producers (IPPs) and gas companies for power and gas purchases. So if receivables are not cleared such kind of unavoidable expenses worth Rs27 billion would be unbearable for Wapda, the chairman said.

In a separate meeting, also chaired by the finance minister, issues relating to PIA were discussed, specially the purchase of new planes.

Sources said that various options were discussed, including purchase of second-hand planes. However, no decision was taken with, finance minister asking the PIA management to come up with detailed plan to discuss and finalize the issue in the next meeting.