KE asks Sindh government to clear dues

K-Electric has urged the Sindh Chief Minister Syed Murad Ali Shah for support in expediting the release of outstanding dues of different departments of Government of Sindh which what the power company claimed have increased up to Rs19.2 billion.

Chief Executive Officer KE, Syed Moonis Abdullah Alvi in a letter to Sindh CM has sought his urgent attention to the long pending issue of outstanding dues on various entities and departments within the Government of Sindh (GoS).

He said K-Electric is facing severe cash flow issues due to the non-payment of dues by the provincial government. The company is working tirelessly to manage its routine operations and maintenance along with the purchase of power for the smooth functioning of the operations and to supply safe and reliable power to Karachi and its adjoining areas.

With large amounts pending in the form of receivables from GoS, KE is facing severe constraints in running its day to day operations and ensuring seamless supply of power to the city.

The letter said KE's receivables from different departments of the GoS have now increased to Rs19.2 billion, of which Rs4.5 billion have been reconciled. In addition, Rs33.09 billion is also receivable on account of KW&SB out of which Rs28.5 billion in dues have been fully reconciled.

In its summary to the Supreme Court of Pakistan, GoS agreed to devise a payment plan for the reconciled amount, which was also made part of SC's order. However, there have been notable delays in the payment against the mentioned reconciled amount and a payment plan is still awaited.

As a result, K-Electric's borrowing has increased substantially, and the situation is not sustainable for the company. Moreover, the capacity of banks to finance KE has been exhausted, inadvertently effecting KE's working capital and long-term expansion plan.

It said K-Electric has not been a defaulter of current payments to any of its fuel suppliers since 2012, despite the cash flow situation. However, to be able to continue to make payments to our suppliers and ensure smooth operations, it is essential that the release of outstanding dues be cleared.