IPPs facing liquidity crunch due to non-payment of bills

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KARACHI:  The Pakistan Economy Watch (PEW) yesterday lauded the government for continued improvement in the power generation which is necessary for socio-economic development.

However, it said that pace of reforms is slower than expected which must be considered by the policymakers in the national interest.

Transmission and distribution losses and theft of electricity should be contained which the circular debt should not be allowed to resurface, said Dr. Murtaza Mughal, President PEW. He said that twenty independent power producers are facing problems in continuing operations as their overdue amount has jumped to Rs.205 billion which has compromised their ability to operate at full capacity. These IPPs have stopped payments to PSO and others which are adding to the problem which must be noticed, he added.

Dr. Murtaza said power sector reforms are directly linked to investors’ confidence and investment in the country which must be realized on the policy level, he said.

He observed that the masses and the economy continue to get punished for the weakness of the power sector which must get the immediate attention of the authorities.

The government has repeatedly assured the IMF to hike power tariff, keep surcharge intact, reduce losses and 100 percent collection but steps in this direction are yet awaited. —Agencies

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