ISLAMABAD: The country has to face a Rs1.25 billion loss over late payment to the Independent Power Producers (IPPs) by the Ministry of Water and Power.
This was disclosed by the Auditor General of Pakistan (AGP) during a meeting of a sub-committee of Public Accounts Committee (PAC). The meeting was chaired by Convener committee and MNA PPP Syed Naveed Qamar in Parliament House.
During the proceedings, Qamar said the electricity shortage could be resolved if the government manages circular debt. The officials of Auditor General of Pakistan informed the committee that Ministry of Finance should take the steps for payment to IPPs on time.
It was also disclosed in the meeting that Wapda had signed a deal with IPPs against the ECC’s decision and suffered a loss of Rs100 million and Pesco bought six non-custom paid vehicles costing Rs2.6 million which was also a violation of rules and regulations.
Naveed Qamar said that no institution can sign this kind of pact without approval of the ECC. The Committee ordered that the amount Rs100 million would be deducted from the permanent payments of company and if any company wants to sign this kind of deal in future then it should take permission from the ECC.
