The Ministry of Energy has submitted a proposal to the Economic Coordination Committee (ECC) seeking approval for the clearance of Rs. 262 billion in payables owed to power plants owned by the government.
Insiders reveal that, in compliance with the directives of the International Monetary Fund (IMF), the Ministry of Energy has finalized a plan to address the Rs. 262 billion outstanding payments to government-owned power plants, aligning them with Independent Power Producers (IPPs).
According to reliable sources, after consultations with the Finance Division and Economic Affairs Division, the Energy Ministry has put forth a payment plan totaling Rs. 262.075 billion, targeting the Water and Power Development Authority (WAPDA) and other government-owned power plants.
In the budget for the fiscal year 2023-24, an allocation of Rs. 262.075 billion has been proposed. A recent meeting concluded with an agreement to release Rs. 131.035 billion in the 2nd Quarter, while the remaining Rs. 131.040 billion will be disbursed in the 3rd Quarter of the fiscal year 2023-24.
To move forward, approval of a Technical Supplementary Grant of Rs. 262.075 billion under the Investment Head within the Power Division is required, with the intention of releasing it as an investment in Distribution Companies (DISCOs).
The Energy division has recommended that the Finance Division release Rs. 131.035 billion to government-owned power plants in the 2nd Quarter, with specific allocations for GENCO-II, GENCO-III, WAPDA, Quaid-e-Azam Thermal Power (RLNG), and Quaid-e-Azam Solar Power.
Read More: Pakistan’s FDI Grows by 12% in November 2023 Amid Global Economic Challenges
Likewise, for the 3rd Quarter, a payment of Rs. 131.040 billion is proposed, distributed among GENCO-II, GENCO-III, WAPDA, Quaid-e-Azam Thermal Power (RLNG), and Quaid-e-Azam Solar Power.
It is essential to highlight that the Power Division had previously submitted a Summary to the ECC of the Cabinet on March 16, 2022, seeking approval for the clearance of past liabilities totaling Rs. 444.5 billion related to government-owned power plants.
A supplementary grant of Rs. 182.465 billion was approved in the fiscal year 2022-23 for payment to entities such as the Pakistan Atomic Energy Commission (PAEC), Water & Power Development Authority (WAPDA), and National Power Parks Management Company (NPPMCL), in accordance with the approved payment mechanism for Independent Power Producers (IPPs).
