Govt Decides to Transfer Shares in NandiPur and Guddu Plants to PSO
Muhammad Haris
The Government of Pakistan has decided to transfer shares in Nandi Pur and Guddu Power Plants to Pakistan State Oil (PSO) subject to Federal Cabinet approvals, sources said.
The main aim of this decision has been to reduce circular debt, rising circular debt has been a major factor behind an economic mess in the country, said an analyst.
The Privatisation Commission has taken two major decisions during a recent meeting in Federal Capital Islamabad that these two power plants-Nandi Pur and Guddu have been removed from the list of state-run enterprises to be privatized.PSO to get stakes in Guddu, Nandipur plants
Moreover, it has been decided to transfer shares of these power generating to PSO.
The International Monetary Fund placed several conditions with the Ministry of Finance, and international financial institutions as they want restructuring and revamping of the SOEs, plug losses, and leakages.IMF Review to Boost Pakistan’s Debt Rollovers and Stabilize Currency
The transfer of shares to help reduce gas circular debt by Rs 100 billion, said an energy analyst.
The gas sector debt recently increased as most of the power plants have been consuming Re-gasified Liquified Natural Gas or RLNG.
According to data received from the Ministry of Energy, Sui Northern Gas has to pay around Rs 520 billion to Pakistan State Oil against RLNG purchases.
The gas circular debt has reached Rs 2800 billion in almost four years, of this Rs 700 billion interest on late payments.
Interest payment has reached Rs 700 billion because of the interest increase which rose to a historically high level of 22 percent, said an analyst.
