Islamabad                     -                  The PTI government has added a total of Rs 452 billion to the circular debt in the first 16 months in power with an average accumulation of around Rs 28.3 billion per month.

Power Sector Circular Debt at the beginning of September  2018 when the PTI government took office, was Rs 1330 billion  has reached to Rs. 1782 trillion by December 2019, said a spokesman of the Power division here.

Despite passing the burden of more than Rs400 billion to the power consumers by National Electric Power Regulatory Authority (Nepra) through different adjustments in tariff the government has failed to reduce the power sector circular debt and instead accumulated an average Rs 28.3 billion per month to it during first 16 months (September 2018 to December 2019) in power.

Although the Federal Minister for power had claimed on several occasion that the monthly accumulation of circularly debt had been brought down to Rs 12 billion per month and will be finally reduced to zero by December 2020. It has yet to be seen as how the government will brought it down to zero which is currently hovering around Rs28.3 billion per month and is well above of the target claimed by the government.

Spokesperson of the Power Division while commenting on current status of Power Sector Circular Debt, total liabilities and receivables said that Circular Debt at the beginning of September 2018 when the PTI government took office, was Rs1330 billion and was increasing at a rate of Rs38 billion a month.

With the measures taken by the government, encapsulated in the Circular Debt Capping Plan, the Power Sector has considerably reduced the rate of increase to approximately Rs12-15 billion per month.

The Spokesperson said that various measures including tariff rationalization, recovery drives, anti-theft campaign and system modernization were initiated. Due to these measures, the addition to circular debt is expected to be reduced to Rs130 billion in 2019-2020 compared to the target of 130bn in the Circular Debt capping plan, the spokesperson claimed.

Total Circular Debt as per the definition by December 2019 stood at Rs978 Billion, owed to both public and private generators, while the liabilities of PHPL payable to banks for loans taken in the past to pay generators stood at Rs804 billion, resulting in the total liabilities of Rs1782 Billion.

“We are confident that immense loss reduction, theft reduction and action against corrupt elements as well as improvement in infrastructure are leading to better service delivery to the common man and that we would fulfill the targets given in the circular Debt Capping Plan,” he added.