Islamabad-The government of Pakistan Tehreek-e-Insaf has added Rs962 billion to the power circular debt during less than two years of its tenure taking the total debt to Rs2150 billion, official documents reveals. On average Rs481 billion per year was added to the circular debt in 2018-19 and 2019-20, official documents available with The Nation reveals. As per the data in June 2018, the country’s total circular debt was Rs1126 billion which has gone up to Rs2150 billion till June 30th, 2020. In June 2013, when the PML (N) came into power, the total circular debt was Rs308 billion, which included Rs68 billion payable to IPPs and Gencos and Rs240 billion PHPL debt. In their first year in office, the PML (N) government had accumulated Rs213 billion in circular debt and on June 2014 the total debt reached to Rs 531 billion. In fiscal year 2014-15 the circular debt was increased by Rs 119 billion reaching to Rs 650 billion. In FY 2015-16, 2016-17 and 2017-18 the circular debt was increased by Rs 39 billion, 130 billion and Rs 307 billion respectively. During the five years tenure of PML(N) had increased by Rs 808 billion, whereas during the first less than two years of PTI government it increased by Rs962 billion.
In June 2018, just one and a half month before PTI coming into, the country’s power sector circular debt was Rs1126 billion which included Rs544 billion payable to IPPs and Gencos and Rs582 billion PHPL debt. From June 2018 to June 2019 Rs492 billion added to the circular debt and had taken the total debt to Rs1618 billion. The power sector circular debt had reached to Rs1618 billion as the payables to IPPs and Gencons had hit Rs812 billion mark and loans and liabilities parked in PHPL (Power Holding Private Limited) stand at Rs806 billion. From June 2019 to June 2020 the total circular debt has gone up by almost Rs 532 billion to Rs 2150 billion. Monthly wise accumulation of circular debt has also been increased during PTI first year to Rs 41 billion per month.
During the five years tenure of PML (N), In FY 2013-14 the circular debt accumulation was Rs18.583 billion per month, in 2014-15 Rs9.917 billion per month, in 2015-16 Rs3.250 billion per month, in 2016-17 Rs10.833 billion per month and in 2017-18 Rs25.583 billion. During PTI first year in office (August 2018 to June 2019) around Rs430 billion were added to the circular debt at the average of Rs41 billion per month. In the second year of the incumbent government in office total of Rs532 billion were added to the circular debt at the average of Rs44.33 billion per month.
It is worth mentioning that in the meeting of standing committee on power, which met last week under Senator Fida Mohammad, was told by NEPRA Chairman that they had not received the figures for the circular debt till June 2020 formally, however it is around Rs2150 billion.