ISLAMABAD: The circular debts in power sector have reached to Rs 400.14 billion as the repayment of these debts have become headache for government.
Sources said that burden of circular debts have increased and power generating companies have started to mount pressure on government to make payments immediately so that financial crises could be controlled. The situation would become more worsen if measures were not taken in this regard.
“The government has made payments of Rs 30 billion. Due to non-payments some 13 IPPS have also asked government to pay the amount of indemnity amount”, sources added.
Sources further said that payment of Rs 40 billion is necessary to control the situation but the Ministry of Water and Power wants to seek more time in payment while on the other hand IPPS are mounting pressure for immediate release of payments to them.
“The time frame about the payments would likely to come under discussion in the proposed meeting scheduled to be held on Monday (today)”, sources concluded.