Power Management Yields $435M (Rs53B) Addtl. In Recoveries
Industry experts say energy imports is an emerging threat to economy. In their opinion, it is easier to displace billions of dollars in energy imports than to increase exports by the same amount
PKONWEB Report — Prime Minister Imran Khan on Friday congratulated his Energy Minister Omar Ayub Khan and his team for recovering additional US$435 million (Rs 81 billion) in collections during the eight months of the new government.
He said there was zero load-shedding at Sehr and Iftar (during Ramadan) and appreciated the hard work of the minister and his team. “This is Naya Pakistan,” the prime minister said in his twitter message.
The estimated cost of power theft during 2017-18 fiscal year was over Rs53 billion (US$379 million) , reveals a report of the Senate Committee on Circular Debt.DAWN
PM Khan also said Rs 58 billion had been collected from theft control while 80 percent of the country had been freed from load-shedding.
He said another Rs 120 billion would be recovered next year as flow of circular debt had already reduced from Rs 38 billion per month to Rs 26 billion and it would be brought to zero by next December.
High transmission and distribution (T&D) losses, the report said, have contributed Rs187bn (US$1.34bn) over the past five years to the overall circular debt.DAWN
He said Rs 100 billion additional would be recovered from old receivables.
Above average power line losses, massive theft, unauthorized connections, and slow recovery of receivables have been impeding the additional power generation capacity carried out so far.
Industry experts blame revenue losses primarily on mismanagement and organizational lethargy. During the last five years, nearly 11000 MW power generation capacity (fossil and non-fossil) was added countrywide.
The cumulative receivables of Discos ((Distribution Companies) stood at Rs824 bn by the end of last fiscal year (FY18).
PM Khan’s team is focusing on reducing dependence on imported fuels from 41 percent to 30 percent in five years, and less than 20 percent in 10 years using hydel, renewable and local fuels like Thar coal.
There were over 5 million non-paying electricity connections who are either willful or running defaulters (unable to pay), with their cumulative outstanding balances standing at Rs405bn last fiscal year (FY18).
According to Asian Development Bank, Pakistan’s energy imports (in tons of oil equivalent) would double by 2025, as local gas production is projected to fall by more than fifty percent.
Industry experts say energy imports is an emerging threat to economy. In their opinion, it is easier to displace billions dollars in energy imports than to increase exports by the same amount.
Due to increase in global prices of crude oil and rising demand of petroleum products in the country, Pakistan’s oil import bill rose nearly 31 per cent to almost $13 billion in July-May 2017-18.
(US$1 = Rs140)