The government has announced plans to transfer the financial responsibility of payments to Independent Power Producers (IPPs) to citizens already facing inflation challenges.
During a session of the National Assembly’s Standing Committee on Energy, Secretary of Energy Fakhre Alam Irfan explained that the public would cover the payments to IPPs and the interest on revolving loans.
He emphasized that pressure from the International Monetary Fund (IMF) is compelling the government to avoid increasing its circular debt despite ongoing discussions in which the IMF has maintained a firm stance.
Moreover, the government is advancing the privatization of the Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GAPCO), and Faisalabad Electric Supply Company (FESCO) to alleviate the financial burdens these entities place on the state.
Power Division officials also noted that despite the National Electric Power Regulatory Authority (NEPRA) approving an 11 per cent loss allowance, distribution companies continue to suffer substantial losses. Specifically, Punjab’s Distribution Companies (DISCOs) have reported losses of Rs 150 billion.
