Power Division Claims To Freeze Circular Debt Rs. 2.310 Trillion

Staff Report

The Power Division has claimed to freeze circular debt at Rs. 2.310 trillion as of December 21, 2023, effectively managing the power sector and tackling technical and commercial losses.

The Power Division secretary conveyed this during a meeting of the Senate Standing Committee on Power, chaired by Senator Azam Nazeer Tarar.

The secretary provided a detailed briefing on the circular debt status, stating that all circular debts had reached the target of Rs. 2.310 trillion as of December 21, 2023, including those negotiated with the IMF, ensuring consistency in 2024 as well. This achievement was attributed to efficient management of the power sector and the addressing of technical and commercial losses through tariff adjustments.

Moreover, Rs. 85.7 billion was recovered through an anti-theft drive initiated in the second week of August 2023. The ministry expressed confidence that addressing circular debt would lead to progress. Power Firms Add Rs 396b to Circular Debt

The Power Division secretary emphasized that restrictions on staff postings had been imposed to control electricity theft, despite objections from the Election Commission.

The session began with the chairperson inquiring about the report on awarding contracts to M/s Sinohydro Corporation for LoT-I, M/s Harbin Electric International for LoT-II, and consultant M/s GOPA Intec for the construction of a 765kV double-circuit transmission line from Dasu Hydro Power Station to Islamabad I/C Grid Station, as well as ADB project ACSR Bunting Conductor LoT-11, which was discussed and referred to the Power Division in the last meeting.

The Power Division secretary assured the committee members of the efforts being made for progress. The MD of NESPAK provided a detailed briefing on various projects, including DTLP (Lot-I by M/s Sinohydro Corporation Limited), DTLP (Lot-II by M/s Harbin Electric International), DTLP (Consultant Hiring by M/s GOPA Intec), and ADB-4018-2022 (M/s Newage Cables Lahore).

Furthermore, the pre-qualification matter with Lot-I by M/s Sinohydro Corporation Limited was thoroughly discussed. The Minister for Energy (Power Division) added that the World Bank, as the donor agency, had the right to set the framework for changes, ensuring complete transparency and denying any malicious actions.

The committee expressed satisfaction with the Power Division’s functioning. They also discussed Public Petition No. PP-5485 concerning the restoration of electricity in Mirani Dam Feeder Dasht, District Kech. The Power Division explained that the system had deteriorated due to floods and stressed the need for local support, as 80% of the inefficiency was attributed to a lack of financial resources and law enforcement support.

The chairman assured the ministry of his support and recommended writing a letter to the provincial government of Balochistan to facilitate electricity supply in the area. Additionally, the committee members discussed recommendations made by the Senate Standing Committee on Commerce regarding substantial tariffs.

The committee also considered Public Petition No. PP-5652 & 5653 against the management of K-Electric IBC for the illegal disconnection of PMT in Jahanabad near Gulshan-e-Maymar, Karachi. The K-Electric official explained that after analysis, the fault was found at the PMT end, and the issue had been resolved.

Furthermore, the Managing Director of NESPAK provided a detailed presentation on the consultancy and progress of all NESPAK projects.