Tag: Circular

KARACHI - The Oil and Gas Development Company (OGDC) has so far drilled eight wells in FY11 against a total target of 26 wells. Among the drilled wells, only one is exploratory against a target of 10 exploratory wells in FY11. Similarly, the company has drilled a meager seven development and appraisal wells against a target of 16 wells.
The ongoing circular debt crisis, along with restricted security clearance, would continue to keep the exploration programme muted, said Nauman

ISLAMABAD - The International Monetary Fund (IMF) has sought a clear plan of action from the government by Friday (today) to end the circular debt issue and reform the bleeding public sector enterprises within the current financial year in order to revive the suspended standby arrangement facility. An official source said the success of the talks hinged on the action plan that the government presented to the fund staff on Thursday and would be finalised today. During the talks, IMF

CONTINUED from page 1 - Similarly, the IMF sought a timeframe for inducting professional management in DISCOs and GENCOs. They also expressed reservations that the benchmarks agreed with the fund in September 2008 for the reform of PSEs had not been implemented. The government was continuously borrowing from the commercial banks to keep afloat the non productive PSEs, which had created a non conducive environment for private investments. The government team briefed the IMF officials

KARACHI - The cash strapped state oil marketing company, Pakistan State Oil (PSO), has received around Rs 28 billion from the Ministry of Finance against dues owed by Pakistan Electric Power Company (PEPCO) and Kot Addu Power Company (KAPCO). Given that the amount of circular debt has ballooned to Rs 168 billion, the finance ministry, as part of its effort to clear the circular debt, has made a payment of Rs 28 billion to the PSO on Wednesday, sources said.
However, PSO claims

KARACHI - Uncertainty regarding circular debt, plant efficiency and timings of dividend payment are likely reasons of Nishat Power Limited's (NPL) inability to gain market strength. Investors are surprised that, despite more than expected earning per share of Rs 3.4 in the first half of the Financial Year 2011, NPL has been unable to gain investors' attention.
With electricity tariffs put on hold for the last several months, government is bearing a monthly subsidy of Rs 15 to16

KARACHI - The lingering issue of circular debt has continued to haunt the power sector as the Water and Power Development Authority (WAPDA) is yet to repay at least Rs 88 billion to the Hub Power Company (HUBCO). In addition, WAPDA also failed to provide HUBCO with a Letter of Credit (LoC) worth Rs 12.92 billion, as required under the Power Purchase Agreement (PPA). WAPDA's inability to clear outstanding dues has rendered the power company with a hefty default of at least Rs 75

ISLAMABAD - The circular debt in net term has reached the mark of Rs 230 billion, with the major contributors being inefficient power distribution companies (DISCOs) that have failed to control massive line losses and theft to the tune of Rs 125 billion per annum.
An official source said the government had decided not to increase power tariff during the current fiscal year and would attempt to bridge the remaining difference through better management and efficiency of DISCOs. The

ISLAMABAD - Prime Minister Yousaf Raza Gilani on Friday asked Finance Minister Abdul Hafeez Shaikh to hold meetings with all the stakeholders and resolve the circular debt issue. In a meeting held at the Prime Minister's House and also attended by Petroleum Secretary Imtiaz Qazi and PSO MD Irfan Qureshi, Gilani directed Shaikh to discuss the issue and come up with a solution after holding meetings with the secretaries of Petroleum, Water and Power and Railways at the earliest.