Inefficiencies, admin losses of power sector be cut down to address circular debt: PM

Prime Minister Shahid Khaqan Abbasi on Thursday directed an overhaul of the power transmission, distribution and recovery process of the distribution companies to cut down inefficiencies, lessen administrative losses and to find a permanent solution to the issue of circular debt.

He was chairing a meeting here at the PM Office to review issues related to furnace oil and petroleum attended by Minister for Power Sardar Awais Ahmed Leghari, secretaries of Finance, Power and Petroleum Divisions, MD PSO and senior officers of concerned departments.

The meeting also reviewed availability and consumption of gas by the power sector.

The prime minister directed for constitution of a high level committee to find solution to the issue of circular debt. The committee would be headed by Leghari and would include representatives of Ministry of Finance, Power and Petroleum Division.

The meeting, took stock of the existing storage, production capacities of the local refineries and consumption, and decided to restrict import orders for the furnace oil.

Future import of furnace oil would be conditional to the approval from Cabinet Committee on Energy. The measure would help reduce import bill and ensure optimal operationalisation of LNG-based power plants.

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