Pakistan’s nuclear power plants, operated by the Strategic Plans Division (SPD) under the Pakistan Atomic Energy Commission (PAEC), are facing the consequences of delayed payments from federal government entities. Out of the total circular debt of Rs 4 trillion, Rs 2.6 trillion is related to the power sector, while the petroleum sector’s debt amounts to Rs 1.7 trillion.
According to reliable sources, the Central Power Purchasing Agency – Guaranteed (CPPA-G), the market operator, has only paid 7.74 percent of the billed amount in April 2023. The amount being released by CPPA-G is insufficient to cover the operational and maintenance expenses of the nuclear power plants, as well as the obligatory contractual payments for fuel, spares, and loans.
The SPD has communicated with CPPA-G, expressing concerns that the inadequate revenue release may result in defaults on sovereign-guaranteed loans and other contractual payments. The government is required to repay a loan of Rs 93 billion ($322 million) to the Exim Bank of China, Rs 50 billion for fuel payment, and Rs 10 billion for operation and maintenance, totaling Rs 153 billion.
The SPD has requested that CPPA-G be directed to make the necessary payments to fulfill contractual obligations, including the repayment of foreign loans, in order to prevent a default situation.
CPPA-G has only cleared 39.51 per cent of the billed amount in past three months of this Fiscal Year (FY23).
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