K-Electric Payables Shoot to Rs. 68 billion: SSGC

Having reported a profit of Rs 22.7 billion in nine months of ongoing financial year, K Electric remains a defaulter of Sui Southern Gas Limited with huge dues piled up to Rs 68 billion.

According to a spokesman, K-Electric is one of its primary defaulters which to date owes it Rs. 68 billion and not Rs. 58 billion, with the latter paying the amount equivalent to current bills and some overdues as per agreed payment plan.

Time and again, SSGC has taken all appropriate and immediate measures for full recovery of all outstanding amounts from KE and other customers.

Considering the seriousness of the issue, the company management has been pursuing its legitimate claim from KE by filing recovery suit against the latter. At the same time, the SSGC management is in constant liaison with the concerned ministries to expedite the recovery of outstanding dues from KE as well as other major defaulters.

This is, of course, in addition to a number of payment agreement plans inked by both stakeholders since 2009 that provided a mutually agreed payment mechanism. It must also be mentioned here that, on a daily basis, the Company submits an Inter Corporate Circular Debt report to the Finance Division of the Government of Pakistan that updates the receivables position of KE and other customers.

It is pertinent to mention here that Pakistan’s biggest power utility has earned a profit after tax of Rs 22.7 billion during July-March of FY16 against Rs 16.2 billion during the corresponding period of last fiscal year, depicting an increase of Rs 6.5 billion.

During the period under review, the government paid an amount of Rs 14 billion on account of tariff adjustment (subsidy) to the company, down from Rs 34 billion. The expenditures under the head of purchase of electricity reduced from Rs 54.83 billion to Rs 40.6 billion in first nine months of this fiscal year.