Prime Minister Imran Khan on Monday chaired a high-level meeting to discuss developments and reforms in the energy sector wherein he was apprised that the government has targeted to get rid of power circular debt by December 2020.
The prime minister was briefed in detail about reforms in the power sector, removal of impediments in power transmission, measures to curb power theft and strategy to cope with the issue of circular debt.
The meeting was told that during 2017-18, the circular debt increased by Rs 450 billion which will be brought down to Rs 293 billion during the current year and Rs 96 billion by 2019-20. However, the circular debt will be completely overcome by the end of next year.
The prime minister was told that a 25-year plan for demand and supply of electricity has been formulated. Moreover, a fresh policy for power production through alternate energy resources has also been formulated. Under the policy, 20 percent of total electricity will be produced from alternate resources by 2025 which will be enhanced to 30 percent by 2030.
The meeting was told that the power ministry’s drive to curb electricity theft and recovery of dues has produced positive outcomes. Within four months, the additional power dues worth Rs 48 billion have been recovered that will touch Rs 80 billion mark by year end and Rs 190 billion till June 2020.
The prime minister was told that special focus was being given to handle the losses caused by theft and technical and transmission issues. As a step to curb power theft, 27,000 FIRs have been registered against those involved in the crime while 4,225 people have been arrested, including 433 officials of the power sector. Moreover, another 1,467 officials have been charge-sheeted.
During the briefing, it was informed that the production capacity of the power system has been enhanced by 3,000 megawatts through addressing 15 major shortcomings. It was assured that no power load shedding will be done on 80 percent feeders across the country during the holy month of Ramazan due to improved distribution and transmission system. For rest of the 20 percent feeders, a load management plan has been formulated in accordance with the losses and where the ratio of power theft is above 80 percent. However, it has been ensured to provide uninterrupted power supply during Sehr and Iftar. While discussing the power tariff, the meeting was told that the previous governments failed to incorporate the expenses incurred on net hydel profits and different power projects in power tariff that is why the consumers were bearing an additional burden now. The prime minister was told that the previous governments announced subsidies for different sectors but did not allocate the required amount in the budget which made the power sector suffer.