The Supreme Court on Monday issued notices to the incumbent and former federal secretaries of the ministry of water and power along with the finance secretary to explain the non-payment of dues to Independent Power Producers (IPPs).
During the last hearing of the petition filed by power companies, the ministry of water and power submitted a payment schedule to the apex court in a bid to resolve the crippling circular debt of the energy sector. The court was told IPPs had also agreed to the payment plan.
Counsel for IPPs Khalid Anwer, however, informed the two-member bench on Monday the government had failed to honour its commitment. He added the first installment was paid a week later than the date mentioned in the schedule, while the second installment which was due on August 30 has not been paid yet.
Anwer maintained the non-payment had reduced the production capacity of IPPs by 50%.
The petition maintains the failure of the government to honour its sovereign financial guarantees to IPPs could have “grave consequences for the wellbeing and prosperity of Pakistan.”
Published in The Express Tribune, September 4th, 2012.
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