Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari announced on Thursday that the federal government disbursed Rs979.3 billion in capacity payments to 33 Independent Power Producers (IPPs) for the financial year 2023-24.
In a written response to a query in the National Assembly, Leghari detailed the allocations: Rs137.02 billion went to China Power Hub Generation Company (CPHGC), Rs113.71 billion to Huaneng Shandong Ruyi Energy (Pvt) Ltd, Rs120.37 billion to Port Qasim Electric Power Company (PQEPC), Rs57.32 billion to Lucky Electric Power Company Limited (LEPCL), Rs33.096 billion to ThalNova Power Thar (Pvt) Limited, Rs33.175 billion to Thar Energy Limited, Rs159.9 billion to Thar Coal Block-1 Power Generation Company (Pvt) Limited, and Rs63.423 billion to Engro Powergen Thar (Pvt) Limited.
Additional payments included Rs23.765 billion to Uch-II Power (Pvt) Limited, Rs7.63 billion to Uch Power Ltd, Rs8.213 billion to Rousch Pak Power Ltd, Rs5.37 billion to Halmore Power Generation Company Limited, Rs4.78 billion to Liberty Daharki Power Limited, and Rs3.923 billion to Foundation Power Company Daharki Ltd, among others.
Leghari also revealed that Rs106.99 billion has been disbursed to power companies such as Karot Power Company (Pvt) Limited, which received Rs75.788 billion, Mira Power Limited with Rs16.005 billion, and Star Hydro Power Limited with Rs15.199 billion. Additionally, Rs81.6 billion was paid to 11 other power producer companies.
The minister explained that the Power Purchase Agreements allow IPPs to recover their fixed costs, including debt servicing, through the Capacity Purchase Price, which depends on the plants’ availability for generation. He noted that the Prime Minister has established a task force to implement structural reforms in Pakistan’s power sector to lower electricity tariffs and reduce the federal government’s financial burden.
Minister for Energy (Petroleum Division) Musadik Masood Malik also informed the National Assembly that Pakistan International Airlines (PIA) owes Pakistan State Oil Company Limited (PSOCL) Rs29.4 billion for jet fuel supplies as of September 30, 2024. This amount includes Rs15.64 billion in principal and Rs13.4 billion in late payment surcharges. Malik attributed PIA’s inability to meet its payment obligations to its weak financial situation and liquidity issues. He mentioned that PIA’s privatization process is ongoing, and a mechanism to clear PSO’s outstanding dues will be determined afterward. Additionally, he reported that the total payables for SSGCL stand at Rs1.05 trillion, with OGDCL’s payables at Rs248 billion, PPL’s at Rs284 billion, GHPL’s at Rs150 billion, and other payables at Rs176 billion.
Malik further noted that SSGCL’s receivables total Rs588 billion, which includes Rs38 billion from power, Rs68 billion from industry, Rs38 billion from domestic sources, and Rs5 billion from other categories, along with a tariff differential of Rs439 billion.
