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Power sector's continuous poor performance and controversial allotment of plots in the Gaddani Power Park has reportedly made Secretary Water and Power Nargis Sethi apply for Leave Prior to Retirement (LPR) - two months prior to her scheduled retirement, well informed sources told Business Recorder. Sethi has not attended office since October 2, 2014 and has applied for LPR effective October 10, 2014. She is due to retire on December 25, 2014, said an official.
Prime Minister Nawaz Sharif had appointed Sethi as Secretary Water and Power in place of Saif Ullah Chatha (now Chief Secretary Balochistan) and gave her fire and hire powers aimed at improving the poorly performing power sector. Sethi relied for support to meet her objectives mainly on officers of powerful Pakistan Administrative Service (PAS) - former District Management Group (DMG) - but failed to deliver at all fronts as the power sector performance went from bad to worse. Electricity tariff was increased through erosion of slabs secretly. However, when the public made a hue and cry across Pakistan and set afire electricity bills, Prime Minister Nawaz Sharif directed his Special Assistant, Dr Musadak Malik to identify the cause of consumers' protests against electricity bills and develop a strategy to change public sentiments.
On September 22, 2014 Prime Minister, Nawaz Sharif and Cabinet members reportedly severely criticised Minister for Water and Power, Khawaja Asif and Secretary Water and Power Nargis Sethi. "Mrs Sethi informed her senior colleagues after the Cabinet meeting that she had received the worst ever treatment in a cabinet meeting," said a senior official close to Sethi.
The sources said besides power sector's woeful performance, Sethi was unhappy with allotment of plots in the Gaddani Power Park (Balochistan) by her subordinate, Dr Zafar Nasrullah. Disturbed by this development Sethi sidelined herself from the position of CEO, Gaddani Power Park, after which acting charge of CEO was given to Dr Zafar Nasrullah.
Power sector receivables increased by 8.4 per cent from Rs 512.9 billion on June 30, 2014 to Rs 556.103 billion as of August 31, 2014. Official sources claim that power sector's monthly recovery has also dropped to approximately 80 per cent in August from Rs 101 billion in July 2014. In July 2014, Discos' collection was Rs 79.8 billion against a billing of Rs 101 billion whereas collection in August was Rs 93.8 billion as compared to billing of Rs 115.7 billion. Total billing of two months was Rs 216.7 billion whereas recovery was Rs 173.7 billion.
Federal government owes Rs 8.233 billion as of August 31, 2014 against Rs 6.098 billion as of June 30, 2014, showing an increase of 35 per cent in just two months. Of this, federal government departments owe Rs 1.024 billion, local bodies under federal government Rs 2.547 billion, autonomous bodies under federal government Rs 1.617 billion, defence Rs 1.301 billion and Water and Power Ministry Rs 1.744 billion.
Provincial governments were required to pay Rs 138.683 billion as of August 31, 2014 with Punjab Rs 3.851 billion, Sindh Rs 59.482 billion, KP Rs 20.150 billion and Balochistan Rs 6..413 billion. The KP's receivables include Rs 18.6 billion assessed for KP consumers from September 9, 2008 to September 15, 2010 on account of tariff differential after the withdrawal of KPK petition from Peshawar High Court (PHC). The assessed amount has not been passed on to consumers. The payment of KPK receivables is linked to payment of mark up of Net Hydel Profit (NHP) arrears payable to government of KP as proposed by the province. The amount of receivables against private sector reached Rs 384.605 billion till August 31, 2014 as compared to Rs 355.63 billion as of June 30, 2014.

Copyright Business Recorder, 2014

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