ISLAMABAD: The country’s circular debt has reached Rs 2.379 trillion during the first quarter (July-September) 2021-22 as compared to Rs 2.253 trillion in the same period of 2020-21.
According to official documents, growth in low of circular debt was Rs 99 billion during this period against Rs 102 billion in the same period last year, showing a reduction of just Rs 4 billion.
Of the total amount of Rs 1.375 trillion is related to power producers as compared to Rs 1.134 trillion during the same period last year. However, reduction of Rs 10 billion has been witnessed to Gencos payables to fuel suppliers, Rs 90 billion to Gencos payable to Rs 90 billion from Rs 100 billion due to be paid to fuel suppliers. Likewise, Rs 92 billion has also been reduced to Rs 915 billion from Rs 1.007 trillion in stock of Power Holding Limited (PHL).
According to official documents, unpaid subsidies have reduced by Rs 9 billion during the first three months of current fiscal year against growth of Rs 55 billion in the same period last year. However, the volume of unbudgeted subsidy touched Rs 18 billion during this period from Rs 11 billion in the same period last fiscal year.
The documents further show that IPPs interest charges on delayed payments remained at Rs 30 billion, against Rs 19 billion in comparable period last year. The government has already paid Rs 89.6 billion to the IPPs of pre 1994 and 1994 policy and arrangements are being made to pay over Rs 134 billion to the same IPPs before December 4, 2021. However, payments approved for the IPPs established under Power Policy 2002 have not yet been made despite the fact that the Cabinet approved the proposal.
The volume of non-payment by K-Electric stood at Rs 31 billion during the first three months of current fiscal year against Rs 22 billion during the same period last year, indicating an increase of Rs 9 billion in non-payment.
The amount of Discos inefficiency was recorded at Rs 53 billion in first quarter of current fiscal year against Rs 24 billion in the same period last year, showing an increase of Rs 29 billion.
According to the Power Division, Discos under recoveries remained at Rs 44 billion during the first three months of current fiscal year from Rs 51, showing a reduction of Rs 7 billion.
The unbudgeted subsidy including AJK and KE is around Rs 75 billion (AJK Rs 46 and KE Rs 29 billion). An amount of Rs 292 billion is receivable from KE as on June 2021 due to subsidy dispute between KE and GoP.
The PHL and IPPs stock also reflect projected adjustment/payment through federal budget: (i) repayment of Rs 130 billion PHL debt; and (ii) the settlement of outstanding arrears of Rs 461 billion to IPPs in FY22.
Copyright Business Recorder, 2021