Omar tells IMF team: PD's circular debt shows considerable cut in its growth

21 Sep, 2019

An IMF delegation headed by Ernesto Ramirez Rigo met Federal Minister for Power Omar Ayub Khan on Friday. Secretary Power Division Irfan Ali and other senior officials of the Power Division were also present during the meeting. The federal minister for power informed the delegation regarding historic achievements made by the Power Division with record recoveries and reduction in line losses.
He said that due to concerted team efforts of Power Division led by Secretary Power Division Irfan Ali, the circular debt has shown a considerable reduction in its growth. It was growing with volume of Rs 38 billion per month and in 8 month its growth at the end of last financial year was reduced to Rs 26 billion per month.
In July 2019 the results were even encouraging as the growth was further arrested to Rs 18 billion per month. He said that a comprehensive campaign against power theft and defaulters by the Power Division is yielding positive results. Omar Ayub Khan also appraised the delegation of the technical and system improvement measures undertaken by the Power Division.
He said that in areas where power theft from illegal hooks was rampant, the Ariel Bundled Cables (ABC) are being installed by the Discos while in areas where there problem is even more sophisticated, like the major urban areas, the AMI meters are being installed.
He further informed the delegation that 80% of the total feeders in the country are now load management free. He said, "We are now investing in the distribution system both to improve its technical viability and increase its human resources to make these entities perform efficiently."
He also informed the delegation about the new Renewable Energy Policy whereby the government is targeting to increase share of indigenous resources and cutting down the prices of the electricity for the consumers, besides reducing dependency on imported fuels. "We intend to increase the share of indigenous resources up to 75%," he added.
Ernesto Ramiez appreciated the efforts made by the Power Division in meeting its targets. He also appreciated the efforts of Power Division in formulating the new Renewable Energy Policy. He said that power sector is an integral part of the IMF program. He said that power sector performance in their views is encouraging as they had a detailed discussion with various stakeholders. He also appreciated the shift toward utilization of indigenous resources leading towards reducing the prices of electricity in the country that will ultimately benefit all walks of life.

Read Comments