Circular debt issue of power sector: power crisis likely to worsen as meeting remains inconclusive

The power crisis may worsen in the country as an important meeting convened to resolve the issue of circular debt remained inconclusive with PEPCO demanding immediate release of Rs21 billion. Sources told Business Recorder that PEPCO had sought immediate release of Rs 21 billion and warned that non-release of the required amount would worsen the on-going power crisis.
Another meeting has been scheduled for Monday on the issue of circular debt, tariff differential and outstanding receivable against the public sector organisation, they added.
A brief statement issued by the Finance Ministry after the meeting said that a meeting on key issues of the Power Sector was held at the Ministry of Finance with Finance Minister in the chair, which was attended by Dr Asim Hussain Minister for Petroleum and Natural Recourses, Naveed Qamar, Minister for Water and Power, Deputy Chairman Planning Commission, Secretary Finance and others.
The meeting discussed measures to ensure the financial sustainability of the power sector in detail. The meeting held discussion on resolution of circular debt and curtailment of future build up through cost recovery, increasing efficiency of the sector, improving cash flow of the power sector through recovery of current and outstanding dues of PEPCO and other issues put forwarded by power sector companies.
The representative of PEPCO informed the meeting about the actions being taken for recovery of private receivables as well as progress on recovery of receivables from the Federal and Provincial Government departments. It was decided that the interaction would continue for smooth functioning of the power sector.