ISLAMABAD: Top policymakers fear that Pakistan's energy sector may collapse within a week due to rising power sector dues which have touched Rs 210 billion unless sufficient resources are promptly made available to forestall the collapse. "I fear that the entire energy sector will choke up within a week time as neither Finance Ministry nor Water and Power Ministry are extending funds according to the agreed timeframe," said one of the top government functionaries on condition of anonymity.
Asked whether he thinks that circular debt will be tackled by the economic managers, the reply was in the negative. The Federal Cabinet recently decided that Pakistan State Oil (PSO) would supply 28,000 tons of oil daily to add 1,200MW to the national grid which was implemented for awhile however with PSO not getting agreed funds to open LCs for further import the cabinet decision is simply not implement able.
Petroleum Ministry was also directed to provide 15mmcfd gas immediately to Faisalabad Power Plant for generation of 65MW which, according to official documents, is being implemented. Cabinet had also decided that Petroleum Ministry would divert 207mmcfd gas to the power sector on the request of Water and Power Ministry, but this decision has not been implemented in letter and spirit, said another official. PSO's receivables from power sector have surged to Rs 220 billion. The Hub Power Company (Hubco) is the leading defaulter of PSO with Rs 108.044 billion outstanding followed by Water and Power Development Authority (Wapda) with Rs 62.064 billion, Kot Adu Power Company (Kapco) with Rs 34.733 billion, Karachi Electricity Supply Company (KESC) with Rs 11.138 billion and Independent Power Plants (IPPs) with Rs 6.19 billion.
The national fuel supplying company has to pay Rs 176.418 billion to local and international fuel suppliers and Rs 30.459 billion to Pak-Arab Refinery (Parco), Rs 17.45 billion to Pakistan Refinery Limited (PRL), Rs 9.7 billion to National Refinery Limited (NRL), Rs 32.96 billion to Atock Oil Refinery Limited (ARL), Rs 2.6 billion to Bosicor and Rs 82.5 billion to Kuwait Petroleum Company Limited.
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