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Circular debt also hits CPEC projects


Circular debt also hits CPEC projects
Government unable to clear payment of energy projects worth Rs188b
The outstanding amount is only 18.4% of the total billed amount of Rs1.02 trillion, which is not a very large sum, said the PM’s aide. PHOTO: FILE
ISLAMABAD:
The China Pakistan Economic Corridor (CPEC) power projects are also hit by the circular debt and the government has not been able to clear Rs188 billion due payments in breach of a bilateral energy framework agreement.
Although, the outstanding payments are only 18.4% of the billed amount, it has started affecting the financing models of the Chinese sponsors of the Independent Power Producers (IPPs), set up under the CPEC agreement. ....

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Pakistan seeks $1.2 billion World Bank program loan for power sector reforms


Business
May 1, 2021
ISLAMABAD: Pakistan has asked World Bank for $1.2 billion loans during the ongoing fiscal year, including $600 million for Pakistan Programme for Affordable and Clean Energy to reduce circular debt via cost cut in power generation, decarbonising energy mix, improving distribution, and retargeting electricity subsidies.
The proposed programme loan of $600 million would be given in the shape of $300 million IDA loan and remaining $300 million as IBRD financing. “Pakistan and the WB high-ups discussed $1.2 billion programme loans approval till June 30, 2021, for undertaking reforms on energy and fiscal side,” top official sources confirmed to The News on Friday.
Project financing has been slowed down in Pakistan due to various reasons, including lacklustre approach of executing agencies of donor funded projects. Therefore, authorities were now aiming to generate dollar inflows through programme loans, because its funding was disbursed after u ....

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Hammad for timely completion of reforms in power sector


Daily Times
Hammad for timely completion of reforms in power sector
Minister says unaffordable cost of electricity generation, circular debt build-up and leakages in transmission system have made power sector financially challenging
April 17, 2021
Federal Minister for Energy Hammad Azhar Friday stressed the need to follow a structured approach for timely completion of envisaged reforms in the power sector.
The federal minister was chairing a meeting to review progress on reforms in the power sector, according to press statement issued by the Finance Ministry.
Among others, the meeting was attended by Federal Minister for Economic Affairs Division, Makhdum Khusro Bakhtyar; SAPM on Power and Petroleum, Tabish Gauhar; Secretary Finance Division; Secretary Power Division; Secretary Economic Affairs Division and other senior officers. ....

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Hammad Azhar chairs meeting review progress on reforms in Power Sector


Hammad Azhar chairs meeting review progress on reforms in Power Sector
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ISLAMABAD, Pakistan: The Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar chaired a meeting in Islamabad on Friday to review progress on reforms in the Power Sector.
The Federal Minister for Economic Affairs Division Khusro Bakhtiar, the Prime Minister’s Special Assistant on Power and Petroleum Tabish Gauhar, the Secretary Finance Division, the Secretary Power Division, the Secretary Economic Affairs Division and other senior officers participated in the meeting.
The Secretary Power briefed the finance minister about the efforts being made for the reformation of the Power Sector with a view to provide maximum relief to the electricity consumers. ....

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