Circular debt crosses massive Rs500bn mark

LAHORE: Some 48 percent of the Independent Power Producers (IPPs) are non-operational due to the non-payment of dues, said power sector sources.

It may be noted that the circular debt has crossed the magical figure of Rs 500 billion and is further likely to grow due to low recovery and high rate of power theft across the country.

Total installed capacity of IPPs in the country is 14,683 almost half of which is dysfunctional, causing a negative impact on the supply side of electricity. Meanwhile, total installed capacity from all sources is 30,195 megawatt and IPPs top this capacity, followed by 6001 megawatt of thermal and 2069 megawatt from other sources including nuclear, coal, wind, biogases and solar etc.

The power supply situation is witnessing a gap of over 3000 megawatt between demand and supply as the demand is over 18000 megawatt against a generation of 15315 megawatt at present. Out of the current status of power generation, IPPs share 7764 megawatt, followed by 3034 megawatt from hydel, 2283 megawatt from PEPCO thermal and 2232 megawatt from other sources.

Published in Business Recorder, 16th May, 2018