Shahbaz Sharif, the Prime Minister, has specifically instructed the Ministry of Energy to swiftly complete a series of critical tasks, including the submission of an audit report on the recent gas price hike within one month.
Furthermore, the Prime Minister has mandated the ministry to furnish a report on gas theft and the performance status of power generation companies within two weeks.
Additionally, Prime Minister Shahbaz Sharif has issued directives for the establishment of an intra-ministerial commission to oversee matters concerning the Iran-Pakistan gas pipeline in the forthcoming weeks.
Prime Minister Shahbaz has urged the pertinent authorities to devise a comprehensive plan for establishing new industrial zones aimed at maximizing surplus electricity utilization.
Moreover, the Power and Petroleum Division has been entrusted with formulating a viable solution to address the persistent issue of circular debt within the energy sector.
Simultaneously, the Prime Minister has set a strict timeframe of two weeks for resolving the solar net metering issue between consumers and the relevant regulatory bodies.
The escalating circular debt plaguing Pakistan’s economy has become a pressing concern. Recent data reveals that Pakistan’s power sector circular debt surged to Rs 2.635 trillion during the initial seven months of the 2023-24 fiscal year, surpassing the previous year’s figures.
According to a government document obtained by Business Recorder, outstanding payments to power producers totaled Rs 1,760 trillion, with additional liabilities of Rs 111 billion owed by generation companies (Gencos) to fuel suppliers. Additionally, Rs 765 billion remained parked in Pakistan Holding Limited (PHL) during the fiscal year 2023-24.
Furthermore, interest charges accrued by independent power producers (IPPs) due to delayed payments decreased to Rs 72 billion during the first seven months of 2023-24, compared to Rs 99 billion during the corresponding period of 2022-23.
As discussions resume between the International Monetary Fund (IMF) and the Government of Pakistan, the resolution of the mounting circular debt is anticipated to be a significant focal point.
