Power sector debt soars to Rs2.655 trillion

ISLAMABAD: The Cabinet Committee on Energy (CCoE) reported that the circular debt in Pakistan’s power sector has surged to Rs2.655 trillion as of May 2024.

The meeting, chaired by Prime Minister (PM) Shehbaz Sharif, sanctioned the formation of a DISCOs support unit aimed at enhancing the efficiency of electricity distribution companies. This initiative is designed to curb electricity theft and ensure the timely collection of bills. The new system will initially be implemented at the Multan Electric Power Company.

Additionally, the committee approved an incentive package to recover unpaid and overdue electricity bills. Under this scheme, workers of distribution companies (DISCOs) and law enforcement agencies will receive rewards for successful bill recoveries.

In a bid to foster private investment in the power sector, the committee also approved the Standardized Security Package Document under the Power Policy 2015 for small private sector water projects. This measure seeks to expedite the resolution of tariff and related issues.

Furthermore, the committee extended the Refinery Policy 2023 by six months, focusing on the upgrade of existing refineries. The Ministry of Petroleum has been instructed to consult with the country’s oil refineries and devise a comprehensive upgrade plan.

The meeting included a detailed report on the electricity sector’s debt from July 2023 to May 2024. In response to the ongoing energy challenges in Gilgit-Baltistan, Prime Minister Sharif established a committee to draft a plan ensuring the uninterrupted supply of electricity in the region.

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