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Khawaja M. Asif
@KhawajaMAsif
, 4 tweets, 2 min read Read on Twitter
Review of circular debt by Miftah Ismael:June1,2013,the circular debt (CD) was Rs 505b + there was PHPL (Power Holding co) debt to banks of Rs 340 b. Add these together, as PTI wants, then the total CD was Rs885b.So PMLN inherited Rs 885 as CD.
At the time average production was12000 MW.In 5yrs we added10,000MWs & left average production of 20,000MW.May2018,Circular debt was Rs 423 b+PHPL debt of Rs 603 b.Total CD 1026 b.Daily increase in CD in 5yrs was Rs77mil.
TODAY CD now is Rs603b+Rs 806b(PHPL)for a total CD of Rs1409b.In10months since we left,the addition to debt is Rs 383b.So govt has been adding Rs1277 million daily to CD.Repeat:PMLN added to circular debt Rs77m daily.PTI added Rs1277m daily.
All this in spite the fact that PTI has raised electricity rates by more than 15%. So you see, whether due to incompetence or corruption, using expensive Furnace oil instead of cheaper LNG and making foolish decisions are costly to the people of Pakistan.
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Miftah Ismail
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1) Folks let’s review some circular debt numbers: On June 1, 2013, the circular debt (CD) was Rs 505 b plus there was PHPL (Power Holding co) debt to banks of Rs 340 b. Add these together, as PTI wants, then the total CD was Rs 885 b. So PMLN inherited Rs 885 as CD
2) At the time the average production was 12000 MWs. In 5 years we added 10,000 MWs to the grid, and left with average production of 20,000 MWs. In May 2018, Circular debt was Rs 423 b plus PHPL debt of Rs 603 b. Total CD 1026 b. Daily increase in CD in 5 years was Rs 77 mil
3) Today circular debt is Rs 603b plus Rs 806b (PHPL) for a total CD of Rs 1409 b. In 10 months since we left the addition to debt is Rs 383 b. So govt has been adding Rs 1277 million daily to CD. Let’s repeat: PMLN added to circular debt Rs 77m daily. PTI added Rs 1277 m daily.
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