IPP report: National kitty faced Rs4tr loss due to irregularities in power sector

As Prime Minister Imran Khan, on April 21, allowed to make the power sector inquiry report about alleged irregularities in the power sector public, the nation came to know that the national exchequer faced loss of at least Rs4 trillion due to circular debt and subsidies being given to Independent Power Producers (IPPs).

The 278-page report, says that the cumulative budgetary support for the power sector amounted to 3.202 trillion rupees in subsidies and other liquidity injections from 2007 to 2019 still there were annual losses of around 370 billion rupees due to “power sector’s inefficiencies”.

The committee headed by former SECP chairman Muhammad Ali, pointed out that Pakistanis  are getting electricity at most exorbitant rates in the whole region while accusing some private companies of provide false oil statistics to secure better tariffs.

It also maintains that in accordance with the power policy of 1994, 16 private power producing companies (IPPs) invested around Rs60 billion and earned over Rs400 billion . The committee further said that investors of these IPPs paid 22 times the profit to their business partners.

You can also download the report by clicking on the link in the tweet below.

Do you want to know why costs of electricity are sky high in Pakistan? Who minted billions in this mega IPP Scam? After PM Imran Khan & The Federal Cabinets decision to make the IPP inquiry report public. IPP report is available.

Download Now: https://t.co/oo5dc9n2LU#ARYNews

— ARY News (@ARYNEWSOFFICIAL) April 22, 2020

It is pertinent to mention here that the federal government earlier this month had also made public reports of a high-level inquiry into the sugar and wheat crises that had hit the people hard across the country in January.