Various Steps Taken For Reducing Circular Debt: Senate Informed

ISLAMABAD, (UrduPoint / Pakistan Point News - 5th Aug, 2022 ) :Minister for Power Khurram Dastagir Khan on Friday informed Senate that various steps have been taken by the government for reducing the flow and stock of circular debt.

Replying to queries during question hour in the Senate, the minister said that the steps taken included the return on equity of independent power plants. Government-owned power plants have been reduced to decrease capacity.

He said that the steps were being taken to improve recoveries and reduction of transmission and distribution losses of DISCOs.

He said that other steps included the resolution of the Quetta Agri-Tube-well non-payment issue by metering these consumers and disconnection of chronic non-paying consumers.

He said that other steps included budgeting complete subsidy requirements for the power sector, moving interest costs from the power sector to public debt by conversion of PHL loans to public debt and harmonization the process of uniform tariff and bringing automaticity in the notification of tariff.

Khurram Dastagir Khan said that the major reasons for the increase in circular debt were delay in passing of generation cost increase to the consumers, delay in notification of quarterly adjustment in tariff, unbudgeted/unpaid subsidies, non-payment by K-electric, markup charges billed by IPPS and not allowed by the regulator to be passed to the consumers, PHL debt service payments and less recoveries payments.

The minister said that most of the issues related to K-Electric have been resolved.

He said that Karachi is the biggest city and 1000 megawatt of electricity is being provided.

He said that the present government has reduced the circular debt by 214 billion rupees.