Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari announced on Thursday that the federal government disbursed Rs979.3 billion in capacity payment charges to 33 Independent Power Producers (IPPs) during the financial year 2023-24.

In a written response to a question in the National Assembly, the minister detailed the payments, stating that Rs137.02 billion went to China Power Hub Generation Company (CPHGC), Rs113.71 billion to Huaneng Shandong Ruyi Energy (Pvt) Ltd, Rs120.37 billion to Port Qasim Electric Power Company (PQEPC), Rs57.32 billion to Lucky Electric Power Company Limited (LEPCL), Rs33.096 billion to ThalNova Power Thar (Pvt) Limited, Rs33.175 billion to Thar Energy Limited, Rs159.9 billion to Thar Coal Block-1 Power Generation Company (Pvt) Limited, and Rs63.423 billion to Engro Powergen Thar (Pvt) Limited.

Additionally, the government paid Rs23.765 billion to Uch-II Power (Pvt) Limited, Rs7.63 billion to Uch Power Ltd, Rs8.213 billion to Rousch Pak Power Ltd, Rs5.37 billion to Halmore Power Generation Company Limited, Rs4.78 billion to Liberty Daharki Power Limited, and Rs3.923 billion to Foundation Power Company Daharki Ltd, among others.

The minister stated that Rs106.99 billion has been disbursed to power companies, with Karot Power Company (Pvt) Limited receiving Rs75.788 billion, Mira Power Limited Rs16.005 billion, and Star Hydro Power Limited Rs15.199 billion. Additionally, a total of Rs81.6 billion has been paid to 11 other power producer companies.

He explained that the current Power Purchase Agreements enable IPPs to recover their fixed costs, including debt servicing, through the Capacity Purchase Price, which is based on the availability of the plants for generation. He noted that the prime minister has established a task force to identify and implement structural reforms in Pakistan’s power sector to reduce electricity tariffs for consumers and alleviate the financial burden on the federal government.

Minister for Energy (Petroleum Division) Musadik Masood Malik also informed the National Assembly that the outstanding amount owed to Pakistan State Oil Company Limited (PSOCL) by Pakistan International Airline (PIA) for jet fuel supplies had reached Rs29.4 billion as of September 30, 2024, consisting of Rs15.64 billion in principal and Rs13.4 billion in late payment surcharges.

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In a written response, he attributed PIA’s failure to meet payment obligations to its weak financial and liquidity situation. He mentioned that PIA’s privatization process is underway, and the mechanism for clearing PSO’s outstanding dues will be determined afterward. Furthermore, the minister revealed that the total payable amount for SSGCL stands at Rs1.05 trillion, with OGDCL’s payables at Rs248 billion, PPL’s at Rs284 billion, GHPL’s at Rs150 billion, and other payables at Rs176 billion.

He added that SSGCL’s receivables total Rs588 billion, which includes Rs38 billion from power, Rs68 billion from industry, Rs38 billion from domestic sources, and Rs5 billion from other categories, along with a tariff differential of Rs439 billion.