Islamabad: A senior energy reformer has reported that Government is planning to get more loans for Rs: 200 billion to reduce current financial crises and for the prevention of taking more loans for electricity production of both government and private companies due to their unstable financials.
According to the sources that an international news Broadcasting channel revealed that Pakistan’s economy and society are facing electricity deficiencies since more than a decade. This has weakened their manufacturing field therefore 200 million populations is angry for being the voters of this South Asian country.
Although electricity deficiency is a bit controlled since previous 12 months, but due to circular debt in electricity sector a continuous maladministration of years and financial deficiency for subsidies has caused further increment of 10.1 billion dollars debt.
Independent Power Produces (IPP’s) are displeased for delayed payments from government of Pakistan, and they have aware about upcoming financial issues. While on the other side economic experts have forecasted increasing financial deficit due to increment in circular debt, which is an important part of bail-out discussions with international monitory foundation (IMF).
Pakistan has already borrowed 200 billion rupees through Islamic Bond to, to reduce financial deficit of energy sector and to complete Current Financial Crises. But current circumstances show that more amounts is required for this purpose.
Prime minister Imran Khan has formed a task force for energy reformations as well. Mr. Nadeem Babar head of task force reported that government is planning to borrow 200 billion rupees more reduce pressures from electricity production companies.
He also said these 400 billion rupees will not be enough to zero the remaining amount, but this loan will compensate enough. Where at least no one will be further scared of generator shut down and no one will face liquidity issues.
Nadeem Babar added up saying one of the important strategies of government is to get rid of remaining debt in energy sector. And this action will provide a broader environment to government for the enforcement of its reforms on larger scale. He also said Imran Khans’s government is trying to secure some amount by shifting the arrears to government owned companies’ Balance sheets from the IPP’s balance sheets for the purpose of uplifting the energy sector.
Let’s be clear-cut that government is paying monthly bills for IPP’s electricity production under their electricity purchasing system. But when government fails for the payments of electricity production bills, then power production companies get loans from commercial banks, so that the production process goes on. And the government has to face financial penalty for delayed payment.