Islamabad:
The Power Division on Tuesday claimed to have achieved the target of freezing the cyclical debt at Rs 2,310 trillion by December 21, 2023, in its efforts to manage the power sector and address technical and commercial losses.
The secretary of the Power Department briefed a meeting of the Senate Standing Committee on Power, chaired by Senator Azam Nazeer Tarar, about this achievement.
The Energy Department Secretary provided a detailed update on the status of circular debt, explaining that all circular debts had met the set target of Rs 2.310 trillion as on 21 December 2023, including those successfully negotiated with the International Monetary Fund, ensuring consistency and in 2024.
The Electricity Directorate attributed the achievement of the targets to efficiency in managing the electricity sector and addressing technical and commercial losses through tariff adjustments. In addition, Rs 85.7 billion have been recovered due to an anti-theft drive launched in the second week of August 2023.
The ministry said tackling circular debt would lead to progress, not regression. Despite the objections of the Election Commission, the Secretary of the Electricity Department emphasized that restrictions have been imposed on the posting of personnel to check electricity theft.
The meeting began with inquiries on the report on two issues: award of contracts to M/s Sinohydro Corporation for LoT-I, M/s Harbin Electric International for LoT-II and consultant M/s GOPA Intec for construction of a 765 kV Double Circuit Transmission Line from Dasu Hydro to Islamabad I/C Grid Station and ADB ACSR Bunting Conductor LoT-11 A project, discussed and reported to Power Department in last meeting.
NESPAK managing director provided detailed information about DTLP (Lot-I by M/s Sinohydro Corporation Limited), DTLP (Lot-II by M/s Harbin Electric International), DTLP (Consultant Hiring by M/s GOPA Intec ), and ADB-4018-2022 (M/s Newage Cables Lahore). Further discussed the matter of default with Lot-I of M/s Sinohydro Corporation Limited. The Minister of Energy (Department of Energy) added that the World Bank, as a sponsoring organization, has the right to set the framework for change, emphasizing full transparency and denying malicious actions.
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The committee members also discussed public petition no. PP-5485 regarding restoration of electricity at Mirani Dam Feeder Dasht, Kech District. The Directorate of Electricity explained that the system had deteriorated due to flooding and stressed the need for local support, as 80% of inefficiency is attributed to a lack of financial resources and support from law enforcement. The chairman committee assured the ministry of its support and recommended writing a letter to the provincial government of Balochistan to facilitate electricity supply to the region.
Further, the committee members discussed the recommendations of the Senate Standing Committee on Commerce in its meeting held on 12 and 13 September 2023 in Karachi. The Secretary of the Energy Department expressed that the Departments of Commerce, Energy, Finance and Petroleum are working collectively to resolve the issue, especially regarding the important tariff.
The committee members also considered public petition no. PP-5652 & 5653 against the management of K-Electric (KE) IBC for illegal disconnection of PMT at Jahanabad near Gulshan-e-Maymar, Karachi. The CU executive explained that after analysis, it was found that the fault was at the PMT end and the issue had already been resolved.
Published in The Express Tribune, February 21St2024.
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