Payables to power generators exceed Rs573bn mark

ISLAMABAD: Payables to the power generators have crossed over Rs573 billion with Rs324 billion shortfall between the billed amount and recoveries of distribution companies during July-April 2018 of the current fiscal year.

Sources in the Finance Ministry said that the rise in gap between billed amount and recoveries has been causing serious financial problems for the power sector as payments to power producers are affected. They said that circular debt takes place mainly due to non-availability of required funds to pay the liabilities of power producers.

They further stated that it is important for all the stakeholders in power sector to fulfill obligations falling in their ambit for smooth functioning of the sector and to avoid resurgence of circular debt.

Published in Business Recorder, 27th June, 2018