Pakistan Power Division submits plan to tackle rising circular debt, tariff from plants under CPEC
Islamabad: Pakistan's Power Division has submitted a comprehensive circular debt management plan to the federal cabinet where it has recommended to clear Rs 435 billion worth principal loan of power plants under China-Pakistan Economic Corridor (CPEC) in the next 13 years instead of making immediate payments, media reports said on Saturday.
As per details, the Power Division also recommended the purchase of 11 Independent Power Producers (IPPs) with a single payment of Rs 150 to Rs 200 billion instead of giving Rs 450 billion to IPPs under the head of capacity charges; converting 5500 MW coal power plants on Thar coal from imported coal, reports Pakistan Today.
Circular debt might reach Rs 2587billion till June 2021 despite all governmental actions.
Sources told Pakistan Today that the federal cabinet, while advising the Power Division to pass on a little burden of the power tariff on the citizens, has directed finance minister and SAPM on Power and Petroleum Tabish Gauhar to submit a final report in this regard within two weeks.