Power sector: IMF has concerns about next year’s circular debt: Dastgir

ISLAMABAD: Minister for Power, Khurram Dastgir Khan said on Tuesday that International Monetary Fund (IMF) has concerns on government’s proposed mode to deal with power sector circular debt in the next fiscal year.

Responding to questions during a press conference, the minister, who also faced IMF team during its recent visit, said that issues related to circular debt flow in current fiscal year have already been sorted out but the Fund is concerned over next year’s plan.

The Minister categorically stated that there would no increase in basic tariff of electricity consumers.

Secretary Power, Rashid Mehmood Langrial informed National Assembly Standing Committee on Power that current stock of circular debt is Rs 2.6 trillion. The government has already submitted its requests to Nepra for imposition of additional surcharge on consumers across the country.

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The additional surcharge will be recovered from consumers using 300 units and above. Power Division, in its petition has sought imposition of additional surcharge of Rs 3.39 per unit from March 1 to June 30, 2023. From 1 July the amount of surcharge will be Rs 1.43 per unit (Re 1 per unit new surcharge and Rs 0.43 per unit existing surcharge). In addition, Power Division has also decided to recover Rs 20 billion from consumers using 300 units and above to recover FCA which was deferred in flood hit areas.

Nepra is scheduled to conduct a public hearing on the Motion of federal government on March 2, 2023 regarding imposition of additional surcharge of Rs 3.39 per unit, in addition to request to recover Rs 20 billion from flood hit consumers.

Dastgir said Shanghai Thar Coal Power Project has started generating 1320 Megawatt electricity utilizing local fuel which will not only control load-shedding, but also help in reducing electricity prices.

He said the PDM government, under the leadership of Prime Minister Muhammad Shehbaz Sharif, made hectic efforts to produce electricity using local fuel and succeeded in adding 1980 Megawatts electricity from Thar Coal in the system during the past ten months.

Khurram Dastgir said Thar Coal have 175 billion tons of reserves which are sufficient to generate 0.1 million megawatts of electricity.

He said the government is tirelessly working on power projects and another project of Thal Nova Thar Coal Power Project with a capacity to generate 330 Megawatt electricity has also been energized.

The Minster maintained that Iran-Gwadar Transmission Line project has also been completed, which will be inaugurated soon by Prime Minister Muhammad Shehbaz Sharif.

He said the government has launched a project to generate 6000 Megawatt electricity through solar energy, and in the first phase, request for proposal for establishing a 600 megawatts project in Muzaffargarh has also been floated.

Copyright Business Recorder, 2023