Cabinet body to discuss circular debt tomorrow
The Prime Minister Yousaf Raza Gilani has directed the Cabinet’s energy committee to meet tomorrow (Monday) and investigate the issue of poor recovery of bills by power distribution companies (Discos) that has lead to the piling of circular debt.
The Minister for Water and Power Syed Naveed Qamar informed the premier about the overall electricity demand and supply situation in the country on Saturday.
Qamar told The Express Tribune that the matter of circular debt was taken up among other issues in the power sector during the meeting with the Prime Minister. He maintained that a meeting with the finance ministry would be held next week on the circular debt.
The failure of Discos to recover complete dues from power consumers is the core reason for the circular debt, an official said adding that average collection of bills is 81 per cent against the total amount of electricity sold to consumers.
Tariff differential subsidy was also another reason for the liquidity shortage in the sector.
The prime minister also appreciated the ministry’s efforts to undertake new hydel and renewable energy projects by tapping wind corridors of the country.
The ministry would give a detailed briefing to the prime minister on mega hydel and renewable energy power projects early next week. The minister said that these projects have already attracted huge foreign investment offers.
Published in The Express Tribune, December 11th, 2011.
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Its so painful that meetings are called and made to look as if this matter is new and no high official was aware of it. This is an outstanding issue for now over 3-4 years. Meetings were called in the past and announced actions also. All were made to make public feel that Government in power is serious about it.
Blaming Discos is an excuse. What even Government departments in federal level and provincial levels do not pay dues timely. A strong Finance man would just deduct the outstanding amount from the amount payable to the Provinces or concerned Federal departments. Is it so difficult? Very proudly it is stated that 81% amount monthly bill is collected. Just disconnect whosoever do not pay the bill. This % would go up over 99% for sure.
Actually its just a frustration that people comment knowing very well Government is not at all willing to solve the problem - perhaps their liked persons are in this list.
Circular debt defacto is circular bad debt.