News Detail

Economic managers are expected to face tough questions from the International Monetary Fund (IMF) in Dubai this week as power sector's performance has shown no sign of improvement in losses (Transmission and Distribution), theft and recoveries despite tall claims by the Water and Power Ministry.

Official documents available with reveal that losses in Lahore Electric Supply Company (Lesco), Faisalabad Electric Supply Company (Fesco) and Quetta Electric Supply Company (Quesco) have increased by 0.4 per cent, 1.9 per cent and 1.9 per cent respectively during the first three months of current year (as compared to corresponding period last year). However, no change has been registered in losses in Gujranwala Electric Power Company (Gepco).

Losses in Islamabad Electric Supply Company (Iesco), Multan Electric Supply Company (Mepco), Peshawar Electric Supply Company (Pesco), Tribal Areas Electric Supply Company (TESCO), Hyderabad Electric Supply Company (Hesco), Sukhar Electric Supply Company (Sepco) have declined by 3.5 per cent, 2.4 per cent, 0.9 per cent, 0.2 per cent and 2.3 per cent. These Discos lost 2.494 billion units in three months.

According to documents available with this scribe Discos' receivables have increased by 27 per cent from INR 102.606 billion in June 2013 to INR 130.527 billion in March 2014 (in nine months) whereas receivables from private sector increased by 19.36 per cent from INR 281.502 billion to INR 336.016 billion. Total receivables increased by 21.46 per cent from INR 384.109 billion to INR 466.543 billion in the nine months of the current fiscal year.

Last week Prime Minister was apprised that smart meters at 11 KV grids have been installed. PM directed that electricity dues should be recovered on priority and a report in this regard be presented in a week's time. The PM further directed that action should be taken against heads of distribution companies that are not performing. PM was apprised regarding load-shedding schedule planned for the next 4 months.

Prime Minister, Nawaz Sharif, sources said, has taken a very serious view of this situation and directed the concerned authorities to take all possible steps to recover receivables so that the power sector could be pulled out of hot waters. However the team dealing with power sector is apparently unable to find any out of the box solutions because provinces are resisting at source deduction through federal adjuster.

The sources said Finance Ministry has shown an inability to release more money as subsidy to the power sector, at least prior to a meeting with the IMF in Dubai. This is the reason Finance Ministry recently released INR 20 billion to Pakistan State Oil (PSO).

Source-On Request