- Accounts payable to energy producers are in RS1.608tr.
- Total circular debt looms around RS2.381tr.
- Losses due to problems with records recorded in RS170BN.
Islamabad: In their attempt to address the circular debt of RS2.381 billion rupees of the country, government officials are in conversations with banks to finish the term sheet to borrow 1,240 billion rupees, The news He reported Monday.
The senior private development officials have said that the discount rate has fallen to 12 % from 22 %.
“At the time, the discount rate can decrease. To end the term sheet before the arrival of the Mission of the International Monetary Fund (IMF).
The development comes in the context of two IMF missions that Pakistan will visit in the coming weeks.
The first mission will focus on discussions with respect to climatic finances, while the second will carry out the first review of the country’s progress under the installation of extended funds (EFF) of $ 7 billion.
Expanding government conversations with the banks, the official revealed that the governor of the State Bank of Pakistan (SBP) and Minister of Finance, part of the conversations.
He pointed out that government officials want to borrow 1,240 billion rupees on the interest rate of 6-7% for seven years. However, banks want to provide loans to a Kibor+1 rate.
“Once the term sheet is finished, the government will request loans borrowed from the banks for seven years, which electricity consumers will be returned through the current debt service surcharge from RS3.23 per unit in the rate “The official said.
The official said that from RS2.4 billion, almost RS720 billion have already been resolved by paying the past dues of six independent energy producers (IPP) whose contracts were completed and 15 IPP whose energy purchase agreements are lit in the “Take and pay “model.
The authorities have resolved with IPP the amount of RS450 billion (RS300 billion is paid and RS150 billion is renounced in the head of LPS). And RS286 billion WAPDA quotas have also been resolved without interest payments.
“If the circular debt is resolved, it will relieve the electricity sector that is opening to the private energy market and the distribution companies (disc) are privatizing,” said the official.
According to the latest data on circular debt in the electricity sector until November 2024, the country’s circular debt has fallen slightly from RS12 billion to RS2,381 billion during the July period of FY25 and RS2,393 billion in June 2024.
However, the losses following the inefficiency of discos and the subcobusion of RS170 billion (RS94 billion due to inefficiency and the 76 billion of 76 billion due to the subcontopiary).
The accounts payable to the energy producers were located at RS1,608 billion with loan amounts parked in the private company of Power Holding (PHPL) stood at RS683 billion.
However, the generation companies (Gencos) payable to fuel suppliers stood at RS90 billion in the first five months of the fiscal year.
The data show that the budgeted but unpublished subsidies were in RS5 billion, while the interest charges of PHPL loans and payments to IPP remained at RS70 billion.
In the November 2024 data loaded on the Power division website, it has also highlighted generation cost slope under the QTA chief (quarterly rates settings) and FCA (fuel charging settings) stood in RS31 billion. The data also show that the amount of RS11 billion was paid by K-Electric to CPPA.
