However, background interaction with some officials revealed that the decline in line losses is not sufficient enough to reduce the monthly flow of circular debt. Additionally, capacity payments have risen during the last one year as additional capacity could not be utilized owing to slowdown of economic activity. They added that these are major problems of the power sector and if these remain unresolved, sustainability of the power sector would remain a challenge. The officials added that there is a need for considerable reduction in system losses- transmission and distribution - if the objective of a sustainable power sector is to be achieved.
The government claims that the flow of circular debt has been reduced from Rs 38 billion per month to Rs 26 billion per month and by June, 2020 would be brought to Rs 8 billion per month while by December 2020 the growth will be brought to zero. However this data is not independently verifiable, sector experts told Business Recorder.
Adviser to All Pakistan Textile Mills Association (APTMA), Shahid Sattar when contacted said that the increase in electricity prices has little impact on export sector because their tariff was fixed at 6.5 cent per unit; however, the input cost of other industries has increased significantly owing to tariff adjustment. However, Chairman Council of All Pakistan Textile Association Zubair Motiwala told this newspaper that gas price has increased by 31 percent, water by 29 percent, while the government has withdrawn subsidy on electricity for industrial sector.
An official further revealed that average tariff for general industry B-I category has been raised to Rs 15.30 per unit from Rs 13.30 per unit, reflecting an increase of Rs 3 per unit during the last one year of the PTI government while tariff for peak hour was increased from Rs 18 per unit to Rs 19 per unit. The increase in power tariff has increased input costs of the industry, making them uncompetitive.
Ministry maintained that it took administrative and technical measures pertaining to system augmentation and upgradation. A campaign was launched across Pakistan against overbilling and corruption. As many as 36,000 FIRs were registered, 5318 persons were arrested and Rs 1368 million was recovered from the anti-theft campaign. The distribution companies were tasked to recover Rs 80 billion from old receivables but DISCOs recorded the amount of Rs 121 billion under this head from October, 2018 till June, 2019. Additionally, a project of Advanced Metering Infrastructure (AMI) is being launched in Lesco and Iesco areas with assistance of $ 400 million from Asian Development Bank.