The power sector circular debt has increased by Rs. 196 billion to a record high of Rs. 2,476 billion during the first six months (July-December) of the Fiscal Year 2021-22 as compared to the same period of the previous year.
As per the official documents seen by ProPakistani, payment to power producers increased by Rs. 272 billion during the first six months of FY 2021-22 and reached Rs. 1,494 billion from Rs. 1,222 billion during the same period last year. However, Power Generation Companies’ (GENCOs) payables to fuel suppliers were reduced by Rs. 21 billion during Jul-Dec 2021-22 as compared to the same months of the previous fiscal year.
During Jul-Dec 2020-21, the Power Generation Companies (GENCOs) payable to fuel suppliers was Rs. 100 billion, which has come down to Rs. 79 billion. Similarly, the amount parked in Power Holding Limited (PHL) has also been reduced by Rs. 77 billion during the first six months of FY 2021-22 against the same period last year.
During Jul-Dec 2020-21, the amount parked in Power Holding Limited (PHL) decreased to Rs. 904 billion from Rs. 981 billion recorded in the same period last year, the documents revealed.
As per the documents the government is planning that the circular debt will be reduced by Rs. 362 billion during Jan-June FY 2021-22 from the existing Rs. 2,476 billion to Rs. 2114 billion, the documents claimed. As per the documents, payment to power producers will be reduced by Rs. 280 billion from the existing Rs. 1,494 billion to Rs. 1,214 billion during Jan-June 2021-22.
However, during Jan-June 2021-22, the Power Generation Companies (Gencos) payable to fuel suppliers will jump to Rs. 100 billion from the existing Rs. 79 billion. The amount parked in Power Holding Limited (PHL) will be reduced by Rs. 104 billion from the existing Rs. 904 billion to Rs. 800 billion during Jan-June 2021-22, the documents maintained.
