Monday, June 17, 2024

K-Electric is Fully Cognizant of the Challenges That the GOP Faces: Spokesperson

The outstanding payable amount towards CPPA-G reported in the circular debt management plan with respect to KE correctly refers to the amount of which PKR 349.4 billion is the principal amount whereas remaining PKR 140 billion pertain to mark-up which is disputed. These numbers, including the matter of mark-up is currently under review by a high-level Taskforce constituted by the Honourable Prime Minister Mr. Shehhbaz Sharif. The taskforce, under the leadership of Mr. Shahid Khaqan Abbasi, has already undertaken an exercise to reconcile the dues owed to KE by the Government of Pakistan. According to our records, K-Electric is owed PKR 486 billion against Tariff Differential Subsidy (TDS) claims and other amounts by various government entities. As of December 2022, K-Electric stands to receive PKR 80 billion from the Government of Pakistan on net principal basis.

That said, K-Electric is fully cognizant of the challenges faced by the government under the IMF conditions. This is why, if at any time this position changes to where KE owes the government on a net principal basis, we will ensure that the difference is settled.

Secondly, the PM’s Taskforce is also leading the signing of the Agreements between KE and Government entities for smooth payment of power purchase from national grid and release of tariff differential subsidy. We are cooperating fully with the committee, and the process is in advance stages. We sincerely hope that it will be presented soon for approval to the relevant forum.

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