ISLAMABAD: K-Electric (KE) has sought help from Finance Division for recovery of outstanding consumer collection of Rs 4.794 billion from Pakistan Post Office.
In a letter to Secretary Finance, Chief Financial Officer (CFO), KE, Aamir Ghaziani has explained that despite continually pursuing for the release of the outstanding balance of Rs 3.979 billion (fully verified and reconciled amount) till March 31, 2022 against consumer billing collected on behalf of KE, the amount is still pending to date.
He further submitted that the non-release of the amount has caused KE to incur consequential finance cost of Rs 815 million till February 28, 2023 which has put a significant burden on KE’s already constrained cash flow position. In addition KE’s credit lines have also been exhausted and the power utility company does not have access to incremental credit lines from banks.
As a result, the delay in releasing the funds has aggravated KE’s financial difficulties, making it a challenge for it to meet its obligations in a timely manner.
After explaining the criticality of the situation, CFO KE has requested Secretary Finance to immediately release the amount of Rs 4.794billion which includes principal amount, as well as, finance cost incurred by the power utility due to non-payment by Pakistan Post.
Copyright Business Recorder, 2023
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