Circular debt to reach Rs2.8tr in next four months, NA panel told

[Bilal.]

@Norwegian Your household tariff is one of the cheapest in the region, why people are complaining it's high?

Same with petrol but every time the government tries to rationalize it, the media reports: “government dropped petrol bomb on public” - quoting the exact words.

 

[KhanBaba2]

Only Noonies can explain this since they defend Cpec contracts like crazy

CPEC has pretty wide ranging support from the Pakistan PDF members.

 

[dbc]

@Norwegian Your household tariff is one of the cheapest in the region, why people are complaining it's high?

It is cheap because power is being subsidized by the state, contributing to waste and circular debt. At 0.059 cents a KW/h I'm not sure why people are stealing electricity?

 

[Norwegian]

@Norwegian Your household tariff is one of the cheapest in the region, why people are complaining it's high?

Because people in Pakistan are ungrateful, complaining, Rondi nation.

Same with petrol but every time the government tries to rationalize it, the media reports: “government dropped petrol bomb on public” - quoting the exact words.

Haha yes and corrupt media put fuel on fire as usual. Presstitutes.

CPEC has pretty wide ranging support from the Pakistan PDF members.

It's maybe because they have no clue about how much debt it incurs.

I'm not sure why people are stealing electricity?

If they stop stealing, who would call them Pakistani?

 

[Chhatrapati]

Same with petrol but every time the government tries to rationalize it, the media reports: “government dropped petrol bomb on public” - quoting the exact words.

Our government has been dropping petrol bombs on us since the beginning, now it's around 200 PKR, after some hues and cries people forget it. (Govt give excuses like high fuel prices will force people to buy electric vehicles).

Your electricity for business is almost twice as expensive as India's, but for households, it's less. Maybe you should increase household tariffs and reduce that for business ignoring medias or the public at large. Or find other ways to monetize assets for the revenue shortfall.

complaining

You can't satisfy everyone, taking risks is better, use some other issue to win elections.

 

[Norwegian]

Your electricity for business is almost twice as much as India, but for households, it's less. Maybe you should increase household tariffs and reduce that for business ignoring medias or the public at large. Or find other ways to monetize assets for the revenue shortfall.

Pakistan Main Ulti Ganga Behti Hai

 

[Chhatrapati]

Pakistan Main Ulti Ganga Behti Hai

Chinese tariffs are even lower than India although they appear on the same 8 cents. A company we share our office building with, in India was invited to China, they promised subsidies like rent-free one year period, and special plans in case they are to export their products in terms of electricity and transportation. Can't match their scale.

 

[VCheng]

It’s to do with the structure of our power sector. Since there is one exclusive buyer (government) from these power plants. They have to give guarantee that the power plant being sought will be paid for it’s full capacity. They are now trying to bring power market place with multiple buyers and renegotiate the contracts to pay for used power.

I just hope that the timelines are met and the matter is not delayed even by a day.

That arrangement can work only if the government, having paid the IPPs up front, can recover its costs by selling the power at a rate that makes economic sense on to consumers and collecting the revenue. That does not seem to be happening.

 

[Norwegian]

That arrangement can work only if the government, having paid the IPPs up front, can recover its costs by selling the power at a rate that makes economic sense on to consumers and collecting the revenue. That does not seem to be happening.

Why would economic sense even prevail in Pakistan that has lived on govt subsidies for the past 74 years.

 

[Bilal.]

That arrangement can work only if the government, having paid the IPPs up front, can recover its costs by selling the power at a rate that makes economic sense on to consumers and collecting the revenue. That does not seem to be happening.

Government what’s an out from the business and allow multiple private transmission and distribution companies buying from producers and selling to customers. And customers having multiple options to subscribe to whichever utility company they want. Much like how it was done in telecom sector. It would be a power as commodity free market that is planned to be rolled out in the next 18 months or so.

the upfront payment will be through direct payments and bonds. As you said, if it’s plugged once and for all then the current quantum can be dealt with in one way or the other. What is needed is to resolve it for future permanently.

 

[VCheng]

Why would economic sense even prevail in Pakistan that has lived on govt subsidies for the past 74 years.

We can see the consequences of such decisions clearly. Of course, some may try to justify them on the basis of the regional security environment, but those are all generally mere excuses.

Government what’s an out from the business and allow multiple private transmission and distribution companies buying from producers and selling to customers. And customers having multiple options to subscribe to whichever utility company they want. Much like how it was done in telecom sector. It would be a power as commodity free market that is planned to be rolled out in the next 18 months or so.

the upfront payment will be through direct payments and bonds. As you said, if it’s plugged once and for all then the current quantum can be dealt with in one way or the other. What is needed is to resolve it for future permanently.

We are still waiting to see how the present setup will deal with this grave issue.

 

[Bilal.]

We can see the consequences of such decisions clearly. Of course, some may try to justify them on the basis of the regional security environment, but those are all generally mere excuses.



We are still waiting to see how the present setup will deal with this grave issue.

It’s a gordian knot.

 

[maithil]

Government what’s an out from the business and allow multiple private transmission and distribution companies buying from producers and selling to customers. And customers having multiple options to subscribe to whichever utility company they want. Much like how it was done in telecom sector. It would be a power as commodity free market that is planned to be rolled out in the next 18 months or so.

the upfront payment will be through direct payments and bonds. As you said, if it’s plugged once and for all then the current quantum can be dealt with in one way or the other. What is needed is to resolve it for future permanently.

But multiple distribution companies will share same physical infrastructure ? Unlike mobile telephone sector, building separate infrastructure would be prohibitively expensive.

 

[Bilal.]

But multiple distribution companies will share same physical infrastructure ? Unlike mobile telephone sector, building separate infrastructure would be prohibitively expensive.

It would be like in many countries. UK for instance you can switch utility provider.

By the way, now even mobile companies are going for tower sharing service providers.

 

[blueazure]

It is cheap because power is being subsidized by the state, contributing to waste and circular debt. At 0.059 cents a KW/h I'm not sure why people are stealing electricity?

please tell me where electricity is 0.059c /kwh in pakistan ????