Govt defaults on own payment plan for IPPs

The Supreme Court was told IPPs had also agreed to the payment plan.


Our Correspondent September 04, 2012

ISLAMABAD:


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.

COMMENTS (3)

Khurshid Alam, | 9 years ago | Reply

This govt. of PPP-Allied rulers have allowed unchecked price-hike that even Govt. departments are unable to make their bills payments. How the poor men in the street could pay. Even with 20 hours load shedding, the bills are sent with multiplied increase under unknown formulas. It seems un-paid govt.bills are included in poor man's utility bill in order to minimize the gap or loss of Wapda, an immoral way of money-making in the current 'loot-ghasoot', corruption-ridden system.

Hedgefunder | 9 years ago | Reply

What hope is there for an Nation, whose Govt is consistiantly defaulting on everything they say or do ! It is Govts like these that destroy an Country, yet Pakistani electorate has been blind to actually see as to what they ever achieve during their terms in office !

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