Power sector’s circular debt reaches Rs2,655bn by May

Updated 06 Jul, 2024

ISLAMABAD: A meeting of the Cabinet Committee on Energy (CCoE) was informed on Friday that the circular debt of the power sector has reached Rs2,655 billion by May 2024.

The meeting of the CCoE presided over by Prime Minister Shehbaz Sharif also approved the establishment of a support unit for electricity distribution companies to increase their efficiency, prevent electricity theft, and for the timely collection of bills.

The tenure of DISCOs support unit will be for a period of two years after taking approval from the federal cabinet and it will start from Multan Electric Power Company (MEPCO).

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The committee also decided to approve an incentive package for the recovery of unpaid and overdue electricity bills with rewards to law enforcement agencies and officials of DISCOs over their recovery.

The committee has also decided to approve an extension of six months in the Refinery Policy 2023 for the up-gradation of the existing refineries and directed the Ministry of Petroleum to prepare a comprehensive plan for the upgradation on a priority basis after taking into confidence the oil refineries established in the country.

The Cabinet Committee has approved the Standardized Security Package Document under the Power Policy 2015 for small water projects of the private sector.

The meeting was also submitted a report with regard to power circular debt for the period from July 2023 to May 2024.

The meeting was informed that power sector circular debt has reached Rs2,655 billion by May 2024.

The Cabinet Committee has approved the Standardized Security Package Document under the Power Policy 2015 for small water projects of the private sector.

The aim of this initiative is to promote private investment in the power sector and to deal with tariff and other issues.

The prime minister has taken the decision to resolve the complaints regarding the supply of electricity to the people of Gilgit-Baltistan and established a committee for the uninterrupted supply of electricity in Gilgit-Baltistan.

Copyright Business Recorder, 2024

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