Power sector woes: PM Shehbaz assigns tasks to ministries

In a bid to address issues prevailing in the country’s energy sector, Prime Minister Shehbaz Sharif has assigned a list of tasks to the relevant ministries, which are to be completed in 1-3 months.

As per Aaj News, the prime minister has directed the Ministry of Energy to complete a dozen different tasks, including the submission of an audit report on the hike in gas prices in one month.

The PM also directed the ministry to submit a report on gas theft and non-performing power generation companies in two weeks.

Moreover, the prime minister has also ordered the ministry to establish an intra-ministerial commission on the Iran-Pakistan gas pipeline in the coming weeks.

PM Shehbaz has directed the relevant authorities to provide a plan for building new industrial zones for the utilization of surplus electricity.

Furthermore, the Power and Petroleum Division has been directed to formulate a solution to curtailing the energy sector’s circular debt.

Also, the PM has given a timeframe of two weeks to resolve the issue of solar net metering between the consumer and the relevant organization.

Rising circular debt in the energy sector has crippled the country’s economy.

Pakistan’s power sector circular debt reached Rs 2.635 trillion during the first seven months of (July-January) 2023-24 against Rs 2.626 trillion during the same period of 2022-23.

According to a government document, available to Business Recorder, total payables to the power producers stood at Rs 1,760 trillion, followed by Rs 111 billion to generation companies’ (Gencos) payables to fuel suppliers, and Rs 765 billion as the amount parked in Pakistan Holding Limited (PHL) in fiscal year 2023-24.

The unclaimed subsidies were reduced by zero in fiscal year 2023-24.

Meanwhile, the independent power producers’ (IPPs) interest charges on delayed payment were Rs 72 billion during seven months of 2023-24 - a drop from Rs 99 billion during the same period of 2022-23.

As talks begin between the IMF and the Government of Pakistan resume, one of the major subjects of the talks is expected to be the solution for the mounting circular debt.