Receivables of power sector cross Rs828.5bn

ISLAMABAD: The country’s power sector receivables have crossed Rs828.5 billion as of March 31, 2018 compared to Rs730 billion on June 30, 2017, showing an increase of over 13 per cent in nine months of the current fiscal year.

The poor collections from Discos’ consumers have led to piling up of circular debt, which according to Prime Minister Shahid Khaqan Abbasi has put the country’s financial viability at risk.

An official stated that the power sector machinery (Disco’s administration) is either collaborative with the private sector consumers or unable to recover the receivables.

“We are considering separating Discos’ administration and revenue departments aimed at expediting recovery without which the weak power system will collapse,” he added.

According to official documents, Discos’ collection has registered an 11 percent decline to Rs 789 billion during this period against billing of Rs 887.5 billion.

Published in Business Recorder, 15th May, 2018