Pakistan circular debt rises to unbelievable levels once again

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Pakistan circular debt rises to unbelievable levels once again

ISLAMABAD: On February 15, 2017, the total overdue amounts to the power sector, including GENCOs stood at PKR 414 billion

In a statement issued by the Independent Power Producers Advisory Council (IPPAC), approximately PKR 160 billion out of this relates to overdue payments from CPPA-G owed to GENCOs and NTDC while the balance is for IPPs.

Payments owed to WAPDA for hydel generation are in addition to this. This is despite the oil prices having dropped by more than 50% over the last three years; and this number is steadily rising.

These are amounts verified and audited by the relevant departments for electricity already supplied to the system, and are past the payment due dates.

Repeated attempts have been made by IPPAC and its Members to meet the senior officials of the government to resolve the long outstanding, audited and verified, overdue amounts, as well as to address pending policy issues on taxes and outstanding dispute resolutions, all to no avail.