Business

Power transmission, distribution losses swell to whopping Rs520 billion in FY21-22

Published

1 year ago

Farwa

PESCO purchased 16,560 units and sold 10,355 units.
IESCO caused losses of Rs21.9 billion; purchased units stood at 13,027.
LESCO losses stand at 11.52%, which is equivalent to Rs72.7 billion.

ISLAMABAD: Power sector’s Transmission and Distribution (T&D) losses have surged to whopping Rs520.3 billion with Peshawar Electric Power Supply Company (PESCO) registering the highest-ever deficit of Rs153.8 billion, in just one financial year, The News reported on Monday.

The cash-bleeding power sector’s accumulated losses have crossed the defence spending of the country in the last two financial years, and there seems no sigh of relief for the masses without undertaking basic and fundamental reforms.

The question arises as to why the board members of these loss-making power distribution companies (DISCOs) are not being appointed on merit. The answer is that such appointments are used as a tool for doling out benefits to politically motivated favourites instead of making decisions on merit.

According to the official data available with The News, the total purchased units were 130,158 gigawatt hours (GWh), out of which sold units stood at 107,860 units; so the lost units stood at 22,298 units of GWh in the financial year 2021-22. The target losses of T&D are envisaged at 13.41%, but actual losses went up to 17.13% in the financial year 2021-22.

PESCO purchased 16,560 units of GWh of electricity and sold 10,355 units, so the lost units stood at 6,205 of GWh. Losses of PESCO stand at 37.47% and those went up to Rs153.8 billion in money terms in the current fiscal year. The losses of Tribal Electric Power Company (TESCO) stand at 9.33% and at Rs3.7 billion in money terms. Total purchased units stood at 2,284 units and sold units 2,071, so the lost units of electricity estimated at 213 of GWh.

The losses of Islamabad Electric Power Company (IESCO) stand at 8.18%, which caused losses of Rs21.9 billion in money terms. The total purchased units stood at 13,027 and sold units were 11,961, so the lost units of electricity were estimated at 1,066 units of GWh.

The Gujranwala Electric Power Company (GEPCO) losses stand at 9.07% to the tune of Rs24.7 billion.

The Lahore Electric Power Supply Company (LESCO) losses stand at 11.52%, which is equivalent to Rs72.7 billion. The lost units in case of LESCO are estimated at 3,264 units of GWh in the fiscal year 2021-22.

The losses of Faisalabad Electric Power Company (LESCO) stand at Rs33.4 billion, equivalent to 9.1%. The losses of Multan Electric Power Company (MEPCO) stood at higher side, amounting to Rs75.1 billion. The losses of MEPCO stand at 14.84%.

The losses of Hyderabad Electric Power Supply Company (HESCO) have gone down from 38.55% in 2020-21 to 32.88% in 2021-22 and in financial term stood at Rs45 billion.

The losses of Sukkur Power Supply Company (SEPCO) remained unchanged and stood at 35.27% in 2020-21 and 35.62% in 2021-22. In financial terms, the losses of SEPCO stand at Rs43.7 billion.

The losses of Quetta Electric Supply Company (QESCO) stood at 28.07% and in financial terms escalated to Rs46.3 billion in financial year 2021-22.

Business

The NORINCO Group is invited by CM Sindh to explore opportunities.

Published

19 hours ago

Farwa

Chinese companies have been invited by Sindh Chief Minister Syed Murad Ali Shah to visit Karachi and other regions of Sindh Province in order to observe the quickly growing businesses and investigate prospects in fields like clean energy, infrastructure development, and public transit projects.

Speaking in Beijing to a delegation headed by the chairman of NORINCO International Co., Ltd., he stated that all facilities required would be provided by the governments of Sindh Province and Pakistan.

With assistance from NORINCO International, the Sindh Chief Minister stated that the Provincial Government will firmly urge North Vehicle and BeiBen to think about setting up a Vehicle Assembly Plant in the Dhabeji Special Economic Zone.

Business

A deal with Pakistan to fight financial crimes has been approved by the Saudi cabinet.

Published

19 hours ago

Farwa

In order to strengthen collaboration in the fight against money laundering, terrorist financing, and associated crimes, the Saudi Press Agency announced this week that the Saudi cabinet, led by Crown Prince Mohammed bin Salman, had approved a memorandum of understanding (MoU) with Pakistan’s Financial Monitoring Unit (FMU).

Due to its severe money laundering and terrorism funding issues in recent years, Pakistan was added to the Financial Action Task Force’s (FATF) grey list in June 2018.

The nation was taken off the gray list in October 2022 after enacting extensive measures to fortify its financial system.

The FMU is Pakistan’s financial intelligence unit, created under the Anti-Money Laundering Act of 2010 and tasked with collaborating with foreign partners and evaluating reports of suspicious transactions.

According to the SPA, “the cabinet approved a memorandum of understanding regarding cooperation in exchanging investigations related to money laundering, terrorist financing, and related crimes between the Financial Monitoring Unit in the Islamic Republic of Pakistan and the General Department of Financial Investigation at the Presidency of State Security in the Kingdom of Saudi Arabia.”

The MoU is an indication of Saudi Arabia and Pakistan’s growing strategic partnership. A significant Pakistani diaspora resides in the Kingdom, and numerous Pakistani businesses have established a presence there.

Saudi Arabia has been a key supporter of Pakistan’s economy, bolstering its reserves with substantial deposits in the State Bank of Pakistan and offering deferred oil payment facilities.