Circular debt soars to Rs2.327 trillion in 2020-21

[Okara]

Make Mian Mafroor PM once more. :D

But he is terminally ill.

 

[arifkarim]

پتا تم لوگوں کو کھوتے کے سر کا نہیں باتیں ایسے کرے ہو جیسے کو بہت کوئی پہنچی ہوئی چیز ہو --- ایک تھرمل پاور پلانٹ ڈھائی سے تین سال لیتا ہے مکلمل ہونے میں - اور ٹرانسمیشن لائن چھے مہینے بھی نہیں لیتی - اینوے نہ لگے رہا کرو نا

اتنا آسان تھا تو یہ کام تم پٹواری اپنے 5 سالوں میں کر لیتے۔

 

[arifkarim]

But he is terminally ill.

It's conditional on NRO

 

[maximuswarrior]

Audit is the only solution. If these companies are check for last 10 years. They need to pay Pakistan money. No one can touch them as they are the elite. Shibli Faraz in one talk show open each and every thing of this business. That guy knows in and out. Work on this for last 5 years.

Time has come to put Pak energy policy under the microscope. The problem for PTI is that there are so many challanges on the economic and political front. Many challanges have been tackled very effectively, but many still remain unresolved. PPP and PML-N have wrecked Pakistan inside out. You cannot fix decades of mess in one term. This will require years to fix. The foundation has been laid and a lot of work still needs to be done. We can only hope that PTI government is elected for the unforeseeable future. You need political stability to resolve outstanding issues.

 

[Terminator;]

ISLAMABAD: With power sector circular debt touching Rs2.327 trillion as of June 30, 2021, the Cabinet Committee on Energy (CCoE) on Thursday ordered expeditious implementation on oil crisis report including transfer of additional powers to Oil & Gas Regulatory Authority (Ogra) to regulate oil marketing sector.

Presided over by Planning Minister Asad Umar, the CCoE also desired a final position of all the stakeholders on allocation of pipeline capacity and tie-in mechanism before the next meeting to secure final investment decisions (FIDs) from investors of two additional merchant LNG terminals. It was noted that discouraging signals were going out to the investors who had paid different fees and made other expenditures so far which was not a good omen.

The Power Division presented its monthly circular debt report that reported total power sector circular debt at Rs2.402tr at the end of May 2021,showing an increase of Rs251bn from Rs2.153tr carried forward on July 1, 2020.

The report provisionally projected circular debt at Rs2.327tr as of June 30, 2021 on the basis of Rs90bn payments to independent power producers (IPPs) a few days ago. As such, the power division reported an increase of Rs177bn in circular debt during the entire 2020-21 when compared with Rs541bn surge in fiscal 2019-20.

The report said a major chunk of increase in circular debt of Rs130bn because of unbudgeted subsidies out of Rs177bn total increase and about Rs70bn on account of interest on delayed payments to IPPs. “The committee noted that the circular debt build-up had substantially reduced in comparison to the previous years,” said an official statement, adding the Power Division was directed to continue with its efforts for further reduction.

Sources in the Petroleum Division said Secretary Petroleum Dr Arshad Mahmood submitted a progress report on implementation of decisions of the federal cabinet and the CCoE on 2020 petroleum shortage crisis. He reported that some of the policy, legal and administrative actions had been completed while remaining such steps will take some time to complete while physical implementation could take 3-5 years, for example in upgradation of refineries and storages etc.

Additional powers for Ogra

The report said the stakeholders had reached consensus that a lot of powers currently vested with the Director General of Oil have to be transferred to Ogra for which an agreed draft of revised rules — Pakistan Petroleum (Refining, Blending and Marketing) Rules 1971 — had been pending with Law Division for vetting and then clearance by Cabinet Committee on Legislative Cases (CCLC).

Under the said mutually agreed draft, powers under rules 7, 8, 9, 20, 30, 30B, 31, 39 and 43C would stand transferred to Ogra with the ratification of the cabinet.
Under rule 7, every refinery shall now submit its production programme for next half of fiscal year one month in advance to the regulator as required under the economic interests of the country and its own ability to meet the demands of the market as economically as possible.
Under rule 8, Ogra would now approve the said programme of production which such modifications, if any, as it may indicate in its order of approval keeping in mind the ability of the refinery to make adjustments.
Under rule 9, every refinery shall carry on its production in accordance with the programme of production approved under rule 8 without any change, departure or modification unless with prior approval of the regulator.
Likewise, the rule 20 would empower Ogra that every blending plant, grease plant, reclamation plant and white oils production plants shall submit their bi-annual production plans including any change or alteration in such plans. Under rule 30, no agreement relating to the supply, purchase, sale, storage or export of any imported petroleum products shall be entered into by any person without the prior approval of the regulator.
Under Rule 30B, where the production of petroleum products by the local refineries is found insufficient, the regulator would have powers to impose conditions from time-to-time for a marketing company to import such products. The regulator will have powers under rule 31 to prohibit the sale or disposal of any product in any area.
Under rules 39, every refinery, blending plant, (reclamation plant) and marketing company shall give to the regulator a 7-day prior notice for closure or stoppage of operations along with the reasons and the period for which it is likely to continue.
Under 43C, Ogra will have powers to direct any refinery, marketing company or its agent or dealer or a blending plant (or reclamation plant) to supply such quantity of any petroleum product to such person as may be specified in the order.
The committee directed speedy implementation on above steps and also directed Federal Investigation Agency (FIA) to update the CCoE in its next meeting on the progress of its investigations, assigned to it by the cabinet.

Published in Dawn, July 2nd, 2021

وڈا دلا مُردار ہونے تک "نا اِھل" ہو چکا ہے ۔ ۔ ۔ ۔
اِس لئے کپتان کے فارغ ہونے کے بعد
ایک سیٹ والا چیچو کی ملیاں کا کوئی مولبی تو وجیرِآجم بننے کا چانس پا سکتا ہے، لیکن
رام گلی کے وڈے دلے کا چوہدری بننے کا دور دور تک چانس نہیں

وہ صرف طافُو دارُو والا کا جانشین بن سکتا ہے

 

[RajaRawal111]

Are u saying first you will build a big water reservoir tank and then u will plan to replace half inch pipe to bigger pipe to address water issue in ur house? Building reservoir is a big task as compared with replacing pipe but problem is u want to show others how big reservoir u built but can't show the pipes.

توں معاف کر یار منوں -- پرا میرے سمجھنے کے واسطے میں تجھے پھر کچھ پڑھنے کے لئے دے دوں گا اور تمہیں باتھ روم کی طرف ڈور لگانی پپڑ جاۓ گی

 

[Okara]

٢٠٢٠ میں ختم کرنا تھے سرکیولر ڈیبٹ - نہیں کیا تو اب مداری عمرانی باندروں کو اب اس بات پر ناچنا شروع ہو گے ہیں کہ سرکیولر ڈیبٹ بڑھا کم ہے -- یعنی موٹا اس بات پر خوش ہو کہ پچھلے سات اس کا وزن پچ کلو بڑھا تھا اس سال چار کلو بڑھا ہے -- کیا بات ہے جناب ؟؟

اوے بشرمو اب تمہارے پاس سستی بجلی بنانے کی سہولیات موجود ہیں اب تمہاری جان فرنس آئل سے چھوٹ گئی ہے اس لئے کم بڑھا ہے

Raja Sahib
What's the root cause of this debt?
Let's assume u are a Milk man I agree with u to pay for 20liters milk on daily basis irrespective of my usage. I know my usage is only 10 liters and u know this and supplying only 10 liters. Is this a good deal for me or u?

 

[Okara]

توں معاف کر یار منوں -- پرا میرے سمجھنے کے واسطے میں تجھے پھر کچھ پڑھنے کے لئے دے دوں گا اور تمہیں باتھ روم کی طرف ڈور لگانی پپڑ جاۓ گی

In simple words what's the root cause of circular debt?

 

[RajaRawal111]

Raja Sahib
What's the root cause of this debt?
Let's assume u are a Milk man I agree with u to pay for 20liters milk on daily basis irrespective of my usage. I know my usage is only 10 liters and u know this and supplying only 10 liters. Is this a good deal for me or u?

No I am not asuming I am a milk man with you. Your mental capacity is up to the milk man which I cannot fight with.
You Imrani Idiots have absolutely no capability to understand that in the long run the hydel and Nuclear resources were taking over. Thermal was being fixed to Gas plants only. And the expensive IPPS were shown the door out already.
Every country always keeps extra capacity in terms of thermal power to fill in at the maintenance and other down time of the cheaper sources.

 

[RajaRawal111]

In simple words what's the root cause of circular debt?

Major cause is Not Paying to producers at right time
and for cheaper sources see my post 29

 

[arifkarim]

Major cause is Not Paying to producers at right time
and for cheaper sources see my post 29

Paying to producers from where? Deep pockets?

 

[Hunter_]

Patwari paagal ho gaya hay.

The report said a major chunk of increase in circular debt of Rs130bn because of unbudgeted subsidies out of Rs177bn total increase and about Rs70bn on account of interest on delayed payments to IPPs. “The committee noted that the circular debt build-up had substantially reduced in comparison to the previous years,” said an official statement, adding the Power Division was directed to continue with its efforts for further reduction.

Sources in the Petroleum Division said Secretary Petroleum Dr Arshad Mahmood submitted a progress report on implementation of decisions of the federal cabinet and the CCoE on 2020 petroleum shortage crisis. He reported that some of the policy, legal and administrative actions had been completed while remaining such steps will take some time to complete while physical implementation could take 3-5 years, for example in upgradation of refineries and storages etc.

Patwari Pagal ho nahi gaya , pahlay sy he pagal tha,

 

[Hunter_]

ISLAMABAD: With power sector circular debt touching Rs2.327 trillion as of June 30, 2021, the Cabinet Committee on Energy (CCoE) on Thursday ordered expeditious implementation on oil crisis report including transfer of additional powers to Oil & Gas Regulatory Authority (Ogra) to regulate oil marketing sector.

Presided over by Planning Minister Asad Umar, the CCoE also desired a final position of all the stakeholders on allocation of pipeline capacity and tie-in mechanism before the next meeting to secure final investment decisions (FIDs) from investors of two additional merchant LNG terminals. It was noted that discouraging signals were going out to the investors who had paid different fees and made other expenditures so far which was not a good omen.

The Power Division presented its monthly circular debt report that reported total power sector circular debt at Rs2.402tr at the end of May 2021,showing an increase of Rs251bn from Rs2.153tr carried forward on July 1, 2020.

The report provisionally projected circular debt at Rs2.327tr as of June 30, 2021 on the basis of Rs90bn payments to independent power producers (IPPs) a few days ago. As such, the power division reported an increase of Rs177bn in circular debt during the entire 2020-21 when compared with Rs541bn surge in fiscal 2019-20.

The report said a major chunk of increase in circular debt of Rs130bn because of unbudgeted subsidies out of Rs177bn total increase and about Rs70bn on account of interest on delayed payments to IPPs. “The committee noted that the circular debt build-up had substantially reduced in comparison to the previous years,” said an official statement, adding the Power Division was directed to continue with its efforts for further reduction.

Sources in the Petroleum Division said Secretary Petroleum Dr Arshad Mahmood submitted a progress report on implementation of decisions of the federal cabinet and the CCoE on 2020 petroleum shortage crisis. He reported that some of the policy, legal and administrative actions had been completed while remaining such steps will take some time to complete while physical implementation could take 3-5 years, for example in upgradation of refineries and storages etc.

Additional powers for Ogra

The report said the stakeholders had reached consensus that a lot of powers currently vested with the Director General of Oil have to be transferred to Ogra for which an agreed draft of revised rules — Pakistan Petroleum (Refining, Blending and Marketing) Rules 1971 — had been pending with Law Division for vetting and then clearance by Cabinet Committee on Legislative Cases (CCLC).

Under the said mutually agreed draft, powers under rules 7, 8, 9, 20, 30, 30B, 31, 39 and 43C would stand transferred to Ogra with the ratification of the cabinet.
Under rule 7, every refinery shall now submit its production programme for next half of fiscal year one month in advance to the regulator as required under the economic interests of the country and its own ability to meet the demands of the market as economically as possible.
Under rule 8, Ogra would now approve the said programme of production which such modifications, if any, as it may indicate in its order of approval keeping in mind the ability of the refinery to make adjustments.
Under rule 9, every refinery shall carry on its production in accordance with the programme of production approved under rule 8 without any change, departure or modification unless with prior approval of the regulator.
Likewise, the rule 20 would empower Ogra that every blending plant, grease plant, reclamation plant and white oils production plants shall submit their bi-annual production plans including any change or alteration in such plans. Under rule 30, no agreement relating to the supply, purchase, sale, storage or export of any imported petroleum products shall be entered into by any person without the prior approval of the regulator.
Under Rule 30B, where the production of petroleum products by the local refineries is found insufficient, the regulator would have powers to impose conditions from time-to-time for a marketing company to import such products. The regulator will have powers under rule 31 to prohibit the sale or disposal of any product in any area.
Under rules 39, every refinery, blending plant, (reclamation plant) and marketing company shall give to the regulator a 7-day prior notice for closure or stoppage of operations along with the reasons and the period for which it is likely to continue.
Under 43C, Ogra will have powers to direct any refinery, marketing company or its agent or dealer or a blending plant (or reclamation plant) to supply such quantity of any petroleum product to such person as may be specified in the order.
The committee directed speedy implementation on above steps and also directed Federal Investigation Agency (FIA) to update the CCoE in its next meeting on the progress of its investigations, assigned to it by the cabinet.

Published in Dawn, July 2nd, 2021

I respect your opposition , opposition is very important but like yaar chawalain na mara kro,, aik article mila copy paste kr dia ...#KuchBHEE #KUCHBHEE

 

[surfer]

No I am not asuming I am a milk man with you. Your mental capacity is up to the milk man which I cannot fight with.
You Imrani Idiots have absolutely no capability to understand that in the long run the hydel and Nuclear resources were taking over. Thermal was being fixed to Gas plants only. And the expensive IPPS were shown the door out already.
Every country always keeps extra capacity in terms of thermal power to fill in at the maintenance and other down time of the cheaper sources.

raja bhai, dont look down on milk men. Shahbaz has made millions from his buffalos!

 

[RajaRawal111]

raja bhai, dont look down on milk men. Shahbaz has made millions from his buffalos!

Ooo Yes -- i forgot

 

[RajaRawal111]

I respect your opposition , opposition is very important but like yaar chawalain na mara kro,, aik article mila copy paste kr dia ...#KuchBHEE #KUCHBHEE

This is totally different kind of comment man.
Unfortunately like all normal people I read newspapers to know about things. --- Do Not make my own mental intuition or rely on facebook photoshops, like Imrani Jahils do

 

[arifkarim]

Unfortunately like all normal people I read newspapers to know about things.

Hahahaha. Newspapers written by Patwari journalists?

 

[Hunter_]

This is totally different kind of comment man.
Unfortunately like all normal people I read newspapers to know about things. --- Do Not make my own mental intuition or rely on facebook photoshops, like Imrani Jahils do

well thats your openion just like everyone else in the world, you think reading Dawn Newspaper makes you Normal, I find this amusing

 

[ahameed]

٢٠٢٠ میں ختم کرنا تھے سرکیولر ڈیبٹ - نہیں کیا تو اب مداری عمرانی باندروں کو اب اس بات پر ناچنا شروع ہو گے ہیں کہ سرکیولر ڈیبٹ بڑھا کم ہے -- یعنی موٹا اس بات پر خوش ہو کہ پچھلے سات اس کا وزن پچ کلو بڑھا تھا اس سال چار کلو بڑھا ہے -- کیا بات ہے جناب ؟؟

اوے بشرمو اب تمہارے پاس سستی بجلی بنانے کی سہولیات موجود ہیں اب تمہاری جان فرنس آئل سے چھوٹ گئی ہے اس لئے کم بڑھا ہے

اگر سالانہ کیپیسٹی چارجز 180 ارب سالانہ سے ایک ہزار ارب سالانہ ہو جائیں تو کیا گردشی قرضہ کم ہو گا یا زیادہ؟؟؟

 

[Okara]

Audit is the only solution. If these companies are check for last 10 years. They need to pay Pakistan money. No one can touch them as they are the elite. Shibli Faraz in one talk show open each and every thing of this business. That guy knows in and out. Work on this for last 5 years.

The IPPs contracts are 2-party contracts and can't be changed unilaterally. And the contracts are long term.