PEPCO sinks further into debts

PEPCO sinks further into debts

Failing to make an adequate amount of recoveries from the Pakistani government and private sector, PEPCO (Pakistan Electric Power Company) sank further into debts. As on, Monday, December 26 the company owes Rs350 billion to various
lenders.

According to documents, Pepco’s receivables stood at Rs345.969 billion (provincial and federal governments owe Rs172.931 billion, private sector owe Rs171.671 billion and independent power producers Rs0.182 billion), around Rs4
billion less than the amount due.

Pepco, however, has paid Rs11.7 billion to Pakistan State Oil (PSO) this month and is expected to pay Rs5 billion to gas companies to get continuous supply to keep thermal power generation at optimum levels.

It is believed that the company’s inter-corporate debt will increase further by the year-end as the documents do not have complete figures of December, which may lead to increase in power shortage in coming days.

As per the documents, federal government departments owed Rs1.752 billion to Pepco, while government agencies had to pay Rs2.118 billion. The defence sector owes Rs1.604 billion. In the first five months (July-November) of the
current fiscal year, these sectors collectively paid Rs10.025 billion to Pepco against the bill of Rs10.419 billion.

Government departments and agencies of Punjab have total dues amount of Rs8.862 billion, which is payable to Pepco. In the first five months, they paid Rs3.781 billion against the bill of Rs7.272 billion.

Government departments and agencies of Khyber-Pakhtunkhwa, including Federally Administered Tribal Areas (Fata), owe Pepco Rs20.354 billion. The province had dues of Rs19.427 billion at the end of previous fiscal year in June and
paid Rs0.917 billion against bills of Rs1.844 in the current fiscal year.

The highest amount is owed by government departments and agencies of Sindh, which have to pay Rs45.299 billion. The province released Rs4.410 billion in the current fiscal year against bills of Rs10.479 billion.

Balochistan government departments and agencies have dues of Rs6.176 billion and paid Rs0.435 billion against bills of Rs1.949 billion in the first five months of the current fiscal year.

Azad Jammu and Kashmir owes Rs12.664 billion and paid Rs1.497 billion in the first five months against dues of Rs4.273 billion. Rest of the dues of Rs9.888 billion was carried forward from the previous fiscal year.

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Posted by Wajahat Javed on Dec 27 2011. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry