KESC asks govt to clear dues

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Karachi  The Karachi Electric Supply Company (KESC) has sent an emergency message to the federal finance minister, seeking the immediate payment of longstanding government dues to meet the city’s power needs during Ramazan.

 

 

KESC CEO Nayyer Hussain sent the letter to Senator Ishaq Dar and requested the early payment of outstanding dues.

 

“The KESC has limited resources and it is not possible for the power utility to meet the city’s power demand that has soared to 2,775 megawatts during the summer compared to 2,562 at the same time last year,” Hussain claimed in the letter.

 

The CEO urged the authorities to release at least Rs10 billion out of the total Rs68 billion owed by the government, they further stated. He referred to the present government’s emphasis on resolving the circular debt issue, the sources said. “He also recalled the federal minister’s recent commitment to resolve circular debt in a recent investors’ conference.

 

Hussain said that KESC immediately needed the payment as it had been facing a severe liquidity crisis, mainly due to government dues, which included tariff differential claims, GST refund and outstanding electricity bills of strategic consumers including the Karachi Water Board and Sewerage Board.

 

The power utility chief said his company had been rigorously following up with the government for the payments, but with little success. As a result, KESC was forced to borrow Rs9 billion from local banks to survive and had exhausted its borrowing limits. He informed the federal minister that the massive government dues did not allow the company to regularly procure fuel for power generation plants.

 

Hussain warned that the liquidity constraint would disable KESC from procuring furnace oil during Ramazan, while the power utility was keen to maintain its existing load shedding schedule with the exception of Iftar and Sehar times.





Courtesy:  The News


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