Power sector receivables doubled during present regime

ISLAMABAD: The outstanding power sector receivables has ballooned and almost doubled in last five years of PML-N led regime as it stood at Rs411 billion in fiscal 2013 to Rs720 billion now in fiscal year 2017-18, official documents showed.

It shows inability of the government to recover its receivables and by doing so the cash bleeding power sector can actually overcome monster of circular debt that now peaked to Rs 974 billion in the current fiscal year including its stocks and current flows.

Some expert argue that such massive receivables pending mainly against private sector possessed no justification and it might be part of overall leakages done by the power sector high-ups by joining hands with those who are involved in crime of power theft. “Instead of hurling allegations, there is need to investigate it properly to fix responsibility,” said official sources. For recovery of mammoth jump in receivables of power sector, the Ministry of Power Division was outsourcing of recovery of outstanding arrears with the help of provincial administration by involving police even at the cost of sharing few percentage points out of total recovered amounts.

The outstanding recovery amount stood at Rs 411 billion when the PML-N had assumed reins of power after winning general elections. In 2013, the outstanding arrears against federal government stood at Rs4.4 billion, Azad Jammu & Kashmir (AJK) government Rs 24 billion, provincial governments Rs 24 billion, Fata (domestic) Rs 20.3 billion, private sector connection Rs 260 billion, KE (Karachi Electric) Rs 26.6 billion and IPPs Rs 0.1 billion.

In year 2014, the outstanding arrears of power sector increased to Rs 512 billion as it stood at Rs 6.1 billion against federal government, AJK government Rs 38 billion, provincial governments Rs 85 billion, Fata Rs 34.2 billion, private sector consumers Rs 321.33 billion, KE Rs 28.2 billion and Rs 0.03 billion against IPPs.

In year 2015, the amount of outstanding arrears of power sector increased to Rs 633.1 billion out of which the arrears against federal government stood at Rs 5.3 billion, AJK government Rs 53.1 billion, provincial governments Rs 97 billion, Fata Rs 37.1 billion, power sector consumers Rs 396.5 billion, KE Rs 43.9 billion and IPPs Rs 0.02 billion.

In 2016, the outstanding receivables of power sector further ballooned to Rs 684.06 billion out of which it stood at Rs 4 billion against federal government, Rs 65.3 billion against AJK government, Rs 99.62 billion against provincial governments, Rs 20.6 billion against Fata, Rs 418 billion against power sector private consumers, Rs 46.2 billion against KE and Rs 0.03 billion against IPPs. In year 2017, the power sector receivables touched new heights and stood at Rs 720.8 billion out of which the receivable amount from federal government stood at Rs 4.8 billion, AJK government Rs 60.7 billion, provincial government Rs 20.4 billion, Fata Rs 22.2 billion, private sector consumers Rs 532.6 billion, KE Rs 60 billion and IPPs Rs 0.01 billion.

In last one year, the receivables of power sector from provincial government slashed down from Rs 99.62 billion in FY 16 to Rs 20.4 billion in FY17. However, the receivables from private sector were continuously on rise posing challenge on the writ of the state and the government.