LAHORE - Chief Justice of Pakistan Justice Mian Saqib Nisar on Saturday took suo motu notice of about $1.5 billion excessive payments made to Independent Power Producers (IPPs) in connection with circular debt.
The chief justice issued notices to 10 IPPs and sought a report within three days. He took the notice while hearing different cases at the Supreme Court’s Lahore Registry.
The chief justice remarked that the court had been informed that excessive payments were made to IPPs in connection with circular debt. He said that apparently it was a matter of $1.5 billion excessive payments.
Circular debt generally arises out of high electricity losses and failure to recover the total amounts billed to consumers. The losses are caused due to theft and inefficiencies in the distribution system. It causes a financial gap owing to which the power sector fails to discharge its obligations towards fuel suppliers and lenders. As a result, it affects both financial sector and energy sector.
As per Power Division Secretary Irfan Ali, the circular debt stood at Rs1.14 trillion during the term of the previous government but now it has risen to Rs1.4 trillion. He had stated this while briefing the Public Accounts Committee (PAC) recently. He said the energy sector’s circular debt had touched Rs1,362 billion mark out of which Rs755b is of the Power Holding Company Limited and Rs607b of Standby Term Finance Facility loans.
It was revealed in the meeting held in the Parliament House and chaired by opposition leader Shehbaz Sharif.
Mr Ali had detailed the reasons about the recent increase in circular debt. As on Nov 30, he said, Rs36.2 billion were payable to the generation companies running plants on gas and re-liquefied natural gas. He further said that Rs83.5 billion were payable to oil-based companies, Rs450.5 billion to independent power plants and Rs28.6 billion to nuclear plants. Moreover, a sum of Rs156.7 billion was payable to the National Transmission and Dispatch Company/Wapda, he had added.
SC again seeks report on water theft by India
The Supreme Court on Saturday issued a notice to the Indus Water Commission (IWC) on a petition which seeks that effective steps be ordered to stop the theft of Indus River water by India.
A two-member apex court bench headed by Chief Justice Saqib Nisar was hearing the petition filed by Yaseen Minhas against the water theft from River Indus.
The bench heard the petition at Supreme Court’s Lahore Registry. The petitioner contended that India was stealing water from the river. The petitioner suggested that the water theft could be stopped by changing the route of Marala Link Canal.
The chief justice after hearing the arguments issued notice to the Indus Water Commission and sought a report on the issue in 10 days.
The petition states that half of the 22,000 cusecs water of the canal is stolen by India. Under the Indus Water Treaty, India is bound to give Pakistan total water of the canal, it adds.
During the last hearing on December 30, the Supreme Court had ordered Punjab Irrigation Department Secretary Ali Murtaza to submit a report on the issue by yesterday.
He had asked why India was stealing Pakistan’s water, and said, “We will not let India steal our water.” He had termed the theft of water from the canal equal to sucking the farmers’ blood. He had asked whether the Punjab government was acquainted with whether the neighbouring country was stealing water from the Ravi River; and if so, what steps had been taken to stop it from doing so. But the secretary irrigation had said that water was not being stolen by India. He had also said that cases be registered against those who steal water in Pakistan.
The petition alleges that water is being stolen from the River Ravi and Abasia Link Canal by India.
On the other side, many aggrieved people protested against injustice particularly against illegal possession of their lands. A huge contingent of police was deployed outside the registry. They remained alert to avert any untoward incident and provide security to the visitors.