Prime Minister Syed Yusuf Raza Gilani has directed the Ministry of Finance and the Ministry Water and Power to pay Rs 25 billion to PSO and IPPs by mid-September to enable companies to generate electricity to the maximum capacity so that people are subject to minimum load shedding during the Eid holidays.
The prime minister was chairing a meeting of a high-powered committee, which was attended by Finance Minister Dr Abdul Hafeez Sheikh, who is also the chairman of the committee, Water and Power Minister Syed Naveed Qamar, Acting Governor State Bank, Yaseen Anwar and top officials of the Finance, Planning Division, Water and Power and Petroleum and Natural Resources ministries.
Well-informed sources told Business Recorder that Minister for Water and Power, in his presentation apprised the prime minister that power sector cannot be made viable until 12 percent increase in power tariff across the board is passed on to the consumers in phases.
The sources said, that the prime minister agreed to the proposal but directed not to notify increase in power till the settlement of case pending in the courts. The prime minister, sources said, also directed the experts to work out exact amount of circular debt within 48 hours and present a report to him.
"The prime minister directed the committee to immediately resolve the issue of circular debt, which is the major hurdle in the electricity generation by the IPPs in their full capacity resulting in unbearable burden of load shedding on the people and the industry alike," said an official statement. The meeting, however, did not resolve issue of power theft, which is one of the key factors of circular debt.
The finance minister informed the prime minister that the high-powered committee will submit its recommendations to the Cabinet next month, the implementation of which will address the unscheduled load shedding thoroughly and comprehensively to a great extent.
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