The government has released Rs142 billion to private power plants. The independent power producers have been made the payment as arrears under the terms agreed with the International Monetary Fund.
The amount has been disbursed to ensure uninterrupted power supply and contain the circular debt.
The Hub Power Company Limited, NPL, LPL, National Power Parks and other IPPs have been disbursed the amount. They received the amount on June 27.
In the last 11 months of the previous financial year, the volume of the circular debt increased by Rs394 billion.
The circular debt of the energy sector has reached Rs2.646 trillion. The losses of the government power distribution companies have exceeded Rs300 billion.
The IMF called the government’s reforms in the energy sector imperative, and had declared timely payments as a condition for reducing the circular debt.
