Power Division claims circular debt frozen at Rs2.310tr

Says efficiency measures, anti-theft drive resulted in meeting IMF target

ISLAMABAD:

The Power Division, on Tuesday, claimed that it had met the target of freezing circular debt at Rs2.310 trillion as of December 21, 2023, in its efforts to manage the power sector and address technical and commercial losses.
The Power Division secretary informed a meeting of the Senate Standing Committee on Power, chaired by Senator Azam Nazeer Tarar, about this achievement.

The Secretary of the Power Division provided a detailed briefing on the status of circular debt, explaining that all circular debts had met their set target of Rs2.310 trillion as of December 21, 2023, including those successfully negotiated with the International Monetary Fund, ensuring consistency in 2024 as well.

The Power Division attributed the achievement of targets to efficiency in managing the power sector and addressing technical and commercial losses through tariff adjustments. Additionally, Rs85.7 billion has been recovered due to an anti-theft drive initiated in the second week of August 2023.

The ministry stated that addressing circular debt would lead to progress rather than regression. Despite objections from the Election Commission, the Secretary of the Power Division emphasised that restrictions on staff posting had been imposed to control electricity theft.

The session began with inquiries about the report regarding two matters: awarding of contracts to M/s Sinohydro Corporation for LoT-I, M/s Harbin Electric International for LoT-II, and consultant M/s GOPA Intec for the construction of a 765kV double circuit transmission line from Dasu Hydro Power Station to Islamabad I/C Grid Station and ADB project ACSR Bunting Conductor LoT-11 A, discussed and referred to the Power Division in the last meeting.

The managing director of NESPAK provided a detailed briefing on DTLP (Lot-I by M/s Sinohydro Corporation Limited), DTLP (Lot-II by M/s Harbin Electric International), DTLP (Consultant Hiring by M/s GOPA Intec), and ADB-4018-2022 (M/s Newage Cables Lahore). Additionally, he discussed the pre-qualification matter with Lot-I by M/s Sinohydro Corporation Limited. The minister for Energy (Power Division) added that the World Bank, being the donor agency, has the right to set the framework for changes, emphasising complete transparency and refuting malicious actions.

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The committee members also discussed Public Petition No PP-5485 regarding the restoration of electricity in Mirani Dam Feeder Dasht, District Kech. The Power Division explained that the system had deteriorated due to floods and stressed the necessity of local support, as 80% of the inefficiency is attributed to a lack of financial resources and law enforcement support. The chairman committee assured the ministry of his support and recommended writing a letter to the provincial government of Balochistan to facilitate the supply of electricity in the area.

Furthermore, the committee members discussed the recommendations made by the Senate Standing Committee on Commerce in its meeting held on September 12th and 13th, 2023, in Karachi. The secretary of the Power Division expressed that the commerce, power, finance, and petroleum divisions are collectively working to resolve the matter, especially concerning the substantial tariff involved.

The committee members also considered Public Petition No PP-5652 & 5653 against the management of K-Electric (KE) IBC for the illegal disconnection of PMT in Jahanabad near Gulshan-e-Maymar, Karachi. The KE official explained that after analysis, it was discovered that the fault was at the PMT end, and the issue had already been resolved.

Published in The Express Tribune, February 21^st, 2024.

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