The International Monetary Fund (IMF) has demanded that the issue of K Electric’s dues and subsidies be resolved this fiscal year.
K Electric’s dues and subsidy issue
Powerdivision and K Electric have a dispute over Rs 66 billion dues since 2013, the subsidy given to K Electric is double that of government DISCOs, this amount is in revolving debt on which the government has to pay high interest rates.
According to Finance Ministry sources, the IMF has demanded to resolve the issue of K Electric’s dues and subsidies in the current financial year.
IMF told Prime Minister Shehbaz Sharif that since 10 years this issue is not being resolved, K Electric has to pay gas dues to Sui Southern and electricity dues to NTDC.
In this regard, K Electric is of the opinion that dues will be paid from the Karachi Water and Sewerage Board.
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It should be noted that K Electric’s contract expired in 2015, a few months ago a new power purchase agreement was signed between the caretaker government and K Electric.