Line Losses, Non-recovery Main Reasons For Increase In Circular Debt: Senate Body Told

The Senate Standing Committee on Power Division was informed on Wednesday that line losses and non-recovery were main reasons for increase in Circular Debt

ISLAMABAD, (UrduPoint / Pakistan Point News - 28th Jul, 2021 ) :The Senate Standing Committee on Power Division was informed on Wednesday that line losses and non-recovery were main reasons for increase in Circular Debt.

The Committee which met with Senator Saifullah Abro in the Chair discussed various agenda items including agreements with IPPs, details of circular debt, load-shedding etc.

Briefing the committee, Secretary Power Division Ali Raza Bhutta said annual increase in circular debt has been curtailed to Rs 130 billion. An amount of Rs 538 billion was added in circular debt during fiscal year 2019-20, he added.

He said an amount of Rs 330 billion was allocated for provision of subsidy.

The committee was briefed in details regarding power policies formulated in 2002, 2006 and 2015.

The Committee was told that that a subsidy reform proposal has been approved by the Cabinet and added that it would ensure the equitable distribution of power.

Discussing the Power Purchase Agreement between National Transmission and Dispatch Company (NTDC) and K-Electric, the Committee directed that details must be provided to the Committee under Rule 181 of the Rules of business and Conduct.

While discussing the performance of QESCO, Committee members stressed the need for provision of smooth power supply to areas of Jaffarabad, Nasirabad and Gwadar.

Member of the Chamber of Commerce Gwadar, who was present in the meeting, shared the plight of Gwadar and the way electricity shortfall and outages were affecting their businesses.

He said that the Fish Export facility in Gwadar has shut down due to the closing of 60 ice factories as a result of frequent power outages.

Senator Saifullah Abro directed that CEO QESCO to visit Gwadar at the earliest and address the issues and find alternate solutions.

Taking up the issue of process of appointments in PESCO, the Committee stressed that the report of the sub-Committee constituted earlier on the issue must be submitted along with details of the new criterion for hiring and a copy of the advertisement placed in newspapers.

The meeting was attended by Senator Fida Muhammad, Senator Syed Shibli Faraz, Senator Saifullah Sarwar Khan Niazi, Senator Zeeshan Khanzada, Senator Prince Ahmed Umer Ahmedzai, Senator Sana Jamali, Senator Haji Hidayatullah Khan, Senator Bahramand Khan Tangi, Senator Hafiz Abdul Karim, Senator Asad Ali Khan Junejo, Senator Ahmed Khan and senior officers from the Power Division and all concerned departments.