Islamabad: The Power Division has issued a rebuttal to a news item titled “Power ministry seeks Rs 400bn to meet IMF condition,” published in a newspaper on December 21, 2024, calling it misleading and not based on factual data.
A spokesperson for the Power Division clarified that the report misrepresented a routine inter-ministerial correspondence as an urgent SOS call. The communication in question is part of regular budget strategy papers shared with the Finance Division to track releases and expenditures. The Finance Division requests this information as part of the cash flow strategy, not specifically in relation to IMF targets. The report wrongly linked subsidy releases with IMF targets, the spokesperson explained.
The spokesperson further clarified that the target agreed upon with the IMF is related to managing the circular debt within specific limits each quarter, and the power sector is well within these limits. During the first quarter (July-September 2024), the power sector received Rs 128 billion in subsidies, and Rs 31 billion was released during the second quarter. An additional Rs 50 billion are in the pipeline. The power sector is expected to remain within the set target for the end of December 2024, thanks to improved loss recovery performance.
Addressing concerns over circular debt, the spokesperson emphasized that the Power Division is on track with the IMF’s circular debt management targets. The quarterly targets, which include various factors beyond subsidies, are being met. For instance, the agreed target for the circular debt addition by the end of December 2024 is under Rs 461 billion. As of December 19, 2024, the circular debt flow had reached only Rs 70 billion, significantly below the target.
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The Power Division’s statement aimed to clear up any confusion caused by the report and reassured the public that the sector is making good progress toward meeting IMF targets and managing circular debt effectively.
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