Admin losses of power sector be cut down to address circular debt

Prime Minister Shahid Khaqan Abbasi on Thursday directed an overhaul of the power transmission, distribution and recovery process of the Distribution Companies (DISCOs) to cut down inefficiencies,
lessen administrative losses and to find a permanent solution to the issue of circular debt.
He was chairing a meeting here at the PM Office to review issues related to furnace oil and petroleum and was attended by Minister for Power Sardar Awais Ahmed Leghari, Secretaries of Finance, Power and Petroleum Divisions, MD PSO and senior officers of concerned departments.
The meeting also reviewed availability and consumption of gas by the power sector.
The Prime Minister directed for constitution of a high level committee to find solution to the issue of circular debt.
The committee would be headed by the Minister for Power and would include representatives of Ministry of Finance, Power and Petroleum Division.
The meeting, took stock of the existing storage, production capacities of the local refineries and consumption, and decided to restrict import orders for the furnace oil.
Future import of furnace oil would be conditional to the approval from Cabinet Committee on Energy. The measure would help reduce import bill and ensure optimal operationalization of Liqufied Natural Gas-based power plants.
The Prime Minister directed Ministry of Power and Ministry of Petroleum to ensure proper planning to ensure maintenance of required stocks of furnace oil to meet any emergency situation.
Minister for Power Sardar Awais Ahmed Leghari briefed the Prime Minister on steps taken by the Ministry towards streamlining the provision of new electricity connections to the consumers.
He said by January 15 next, all pending 0.8 million applications, would be disposed of.
He said that a system was being developed to ensure provision of electricity connections to consumers within 15 days of application.
The Minister for Power briefed meeting about steps taken to improve the performance of attached departments of Power Ministry.

Source: APP