April 24, 2017
President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister Mian Zahid Hussain on Monday said power plants should not be kept closed to keep circular debt from escalation.
He said that power plants have to pay in cash for furnace oil while gas is available on credit which is an incentive to keep furnace oil based plants closed.
Mian Zahid Hussain said that some power plants are intentionally kept closed while others are being operated on reduced capacity which amounts to punishing masses in summer.
He said that government needs to change policy and contain line losses as well as theft to improve supply of electricity to national grid.
Government is able to produce eighteen thousand megawatt electricity in summer while demand is more resulting in loadshedding. Demand continue to increase by one thousand megawatt per annum which may get a boost due to economic corridor, he added.
The business leader said that IPPs are in good shape and they can jointly produce ten thousand megawatt of electricity but their capacity is not utilised while the issue of non-payments is resulting in mounting circular debt.
He said that one reason for circular debt is difference between tariff and production cost while result in subsidies by the government whose payment is frequently delayed.
He said that data regarding generation and losses of electricity should not be kept hidden from other government departments and masses so that people can know the truth.