PM directs to find permanent solution of circular debt issue; Chairs meeting to review issues related to Furnace Oil and Petroleum

Prime Minister Shahid Khaqan Abbasi has directed an overhaul of the power transmission, distribution and recovery process of the Distribution Companies to cut down inefficiencies and to find a permanent solution to the issue of circular debt.

He was chairing a meeting in Islamabad to review issues related to furnace oil, petroleum and circular debt. The meeting also reviewed availability and consumption of gas by the power sector.

Minister for Power Sardar Awais Ahmed Leghari, Secretaries of Finance, Power and Petroleum divisions, MD PSO and senior officers of concerned departments attended the meeting.

The meeting, while taking stock of the existing storage, production capacities of the local refineries and consumption, decided to restrict import orders for the furnace oil. Future import of furnace oil would be conditional to the approval from the Cabinet Committee on Energy. This would help reducing the import bill besides ensuring optimal operationalization of LNG-based power plants.

The Prime Minister directed Ministry of Power and Ministry of Petroleum to ensure proper planning so as to ensure maintenance of required stocks of furnace oil to meet any emergent situation.

The meeting also reviewed availability and consumption of gas by the power sector.

Discussing the issue of circular debt, resulting from inefficiencies in transmission, distribution and recovery process of the DISCOs, the Prime Minister directed that special attention should be paid towards overhauling the system to avoid administrative losses and to find a permanent solution to the issue. Simultaneously, a high level committee be constituted to find solution to the existing issue. The committee would be headed by the Minister for Power and would include representatives of Ministry of Finance, Power and Petroleum division.

Minister for Power Sardar Awais Ahmed Leghari also briefed the Prime Minister about steps being taken by the Ministry towards streamlining the process of issuance of new electricity connections to the consumers. He informed the Prime Minister that by 15th January 2018, all pending applications, which stood around 08 lacs during past few months, would be disposed of. He said that a system is also being developed to ensure provision of electricity connections to consumers within 15 days of application.

Minister for Power also briefed the meeting about various other steps that have been taken to improve the performance of various attached departments of the Power Ministry.