Thursday 28th of March 2024
Home    |   SCCI Role & Purpose    |   Feedback   |   Contact Us
 
NEWLY OFFICE BEARERS 2022-2024 MUHAMMAD TARIQ IQBAL MUGHAL PRESIDENT, Mr. KHALID ZAMAN TOOR SENIOR VICE PRESIDENT, SHEIKH MUHAMMAD AZEEM VICE PRESIDENT      
Enter Membership ID, Company Name, Person Name, NTN or Phone
Home | Press Release
Resolving energy crisis: Senate body for controlling circular debt
 Muzaffar Hameed May 25, 2010, 06:01:35 AM 

KARACHI : The subcommittee of the Senate standing committee on petroleum and natural resources on Monday observed that the circular debt issue must be controlled to resolve the energy crisis in the country. The subcommittee convened a meeting at PSO House to address the circular debt issue. Senator Jahangir Badar, convenor of the committee, chaired the meeting.

Pepco, OGDC and Hubco also attended the meeting along with representatives of Ministries of Finance and Petroleum & Natural Resources. The meeting was informed that total amount of circular debt has increased to Rs 120 billion. Out of the total amount, Rs 60 billion was business debt, which normally remains in the system during trade and transactions. The remaining Rs 60 billion is the actual problem that is affecting the whole supply chain of the industry.

The committee noted that the circular debt is the main reason behind the severe power crisis in the country. The subcommittee said that the issue of circular debt must be controlled to resolve the energy crisis in the country. The meeting was informed that a huge amount is also payable by the provincial governments. The committee said that provinces should ensure payment of outstanding amounts of the power entities belonging to their respective jurisdictions.

The issue of line losses was also discussed during the meeting. The committee was informed that there are huge line losses in some of the power distribution companies. The committee said that the line losses must be reduced and controlled and recovery of the dues should be expediated.

The committee also directed that the receivables and payables of the circular debt affected companies need to be checked and scrutiny needs to be made on the investment made by these companies. During the meeting, PSO presented the facts about the financial crisis that it is facing due to the circular debt issue. The committee was informed that PSO's total receivables have increased to an alarming level of Rs 122.46 billion as on May 24, 2010.

Out of the total amount, receivables from Wapda are Rs 37.35 billion, from Hubco Rs 45.47 billion, from Kapco Rs 22.44 billion, from PIA Rs 1.31 billion, from KESC Rs 1.79 billion, and from Power Holding Co Rs 1.30 billion, while the amount of receivable on price differential from the government was Rs 12.80 billion. Besides this, PSO's total payables have surged to Rs 123.14 billion as on the same date.

The PSO has to pay Rs 31.96 billion to Parco, Rs 12.97 billion to PRL, Rs 9.40 billion to NRL, Rs 19.03 billion to ARL, Rs 4.84 billion to Bosicor, and Rs 0.64 billion to others, while total payables to KPC and fuel oil suppliers were Rs 44.30 billion.

The meeting was informed that PSO is facing severe liquidity crunch due to huge amount of outstanding. The company has to borrow money to run its business, causing huge burden of financial charges. Follow-up meeting of the subcommittee of Senate standing committee on petroleum and natural resources shall be convened in June, 2010.BR
 

Register |  Sign in
  In the Spotlight
 
  Sheikhupura Weather
Advertisements
SCCI Advertise your business with us, today! SCCI Advertise your business with us, today! SCCI Advertise your business with us, today! SCCI Advertise your business with us, today!
Sheikhupura Chamber on Facebook Sheikhupura Chamber on Twitter SCCI Advertise your business with us, today! SCCI Advertise your business with us, today!
Phone: +92 42 371 68999   fax: +92 42 371 68999   E-mail: info@scci.net.pk   Address: 23 KM, Lahore-Sheikhupura Road, Qila Sattar Shah, Sheikhupura, Punjab, Pakistan
Copyright © 2010 IT Department of Sheikhupura Chamber of Commerce. All rights reserved.
Designed & Developed By: Progressive
Total Hits: 3848323