Former Finance Minister Miftah Ismail claims that there will be no load-shedding in Pakistan in next 7 months on the basis of the liquidity crisis. This means that from June to December there will no load-shedding in the country.
Ismail said that the cash flow situation in the power industry of Pakistan is quite stable. The circular debt is of Rs 397 billion. Rs 50 billion will be borrowed by Power Holding Private Limited (GHPL) to control circular debt. Economic Coordination Committee has given permission to borrow money.
Ismail claims that the present debt condition in power sector is controllable. If the debt amount increases to over Rs 400 billion then problems might occur and Pakistan can face power shortage and outages.
As per Ismail GHPL will arrange Rs 50 billion before Eid-ul-Fitr. If it goes as planned the system will continue to function smoothly for next 7 months until December 2018. Furthermore, Rs 15 billion subsidy is expected which will further help the power sector of the country.
As per a power division official, the finance ministry is finalizing a deal to borrow Rs 50 billion. As per the official in the first phase, the government released Rs 80 billion. Rs 53 billion out of 80 billion was paid to the independent power plants, Pakistan State Oil, and nuclear power plants. The remaining Rs 27 billion were released for banks for debt servicing borrowed by the power sector.
Former minister believes that the present shortfall of 3000MW is due to water shortage in dams of Pakistan.