The power sector circular debt declined by Rs. 336 billion to Rs. 2,310 billion in June 2023 compared to a rise of Rs. 15 billion in the previous month.
During the fiscal year 2022-23 (FY23), the stock of circular debt increased by Rs. 57 billion compared to a decrease of Rs. 27 billion in the same period last year.
The circular stock has decreased by PKR 336bn MoM during Jun’23
The circular stock has decreased by PKR 336bn MoM during Jun’23 to PKR 2,310bn compared to a rise of PKR 15bn MoM during May’23 (Stock: PKR 2,646bn). Moreover, during FY23 the stock of circular debt has increased by… pic.twitter.com/WiWFzXW3br
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Payables to power producers increased by Rs. 83 billion during FY23 and reached Rs. 1,434 billion from Rs. 1,351 billion during the same period last year. Likewise, Power Generation Companies’ (GENCOs) payables to fuel suppliers increased by Rs. 10 billion during FY23 as compared to SPLY.
During the full year, the Power Generation Companies (GENCOs) payable to fuel suppliers was Rs. 111 billion. Conversely, the amount parked in Power Holding Limited (PHL) has been reduced by Rs. 35 billion during FY23 from Rs. 800 billion last year to Rs. 765 billion in June.
The government added Rs. 100 billion to circular debt on account of IPPs interest charges on delayed payments. The pending generation cost (QTAs and FCAs) added Rs. 250 billion in FY23.
Despite the Rs. 57 billion additions in circular debt since FY22, it is noteworthy that the increase of Rs. 396 billion due to losses inefficiencies by power distribution companies and under recovery of bills was compensated by big decreases in Other Adjustments (prior recoveries) to the tune of Rs. 447 billion.
Moreover, payments through fiscal space (principal repayments to PHL and stock payments) posted a decrease of Rs. 162 billion during 2022-23.