The circular debt of the power sector has crossed over Rs 1.1 trillion mark due to outstanding balances of the public and private power generators amounting to Rs 575 billion and outstanding loans of approximately Rs 533 billion parked in Power Holding Pvt LTD forcing some of the plants to shut down for want of funds, the 22 member Independent Power Producers Association (IPPA) has warned.

It said the verified and audited overdue amounts of 22 IPPs on 30th crossed Rs 232 billion. The IPPs demanded payment of enough funds for running their plants.

Stressing the need for major and fundamental reforms in electricity transmission and distribution system, the IPPA pointed out that Pakistan was suffering 30 percent revenue collection losses owing to line losses, theft and non-recovery of electricity bills. Each percentage of leakage translates to approximately Rs 11 billion per year. This means the country loses Rs 330 billion power sector revenue collection.

Copyright Business Recorder, 2018