ISLAMABAD: In a bid to address the issue of delayed payments, K-Electric (KE) has sought the intervention of Finance Minister Muhammad Aurangzeb to expedite the release of long-overdue funds from federal and provincial entities. KE CEO Syed Moonis Abdullah Alvi, along with CFO Muhammad Aamir Ghaziani and Chief Regulatory Affairs Muhammad Imran Qureshi, met with the finance minister to discuss the matter.
The Ministry of Finance revealed that the KE delegation highlighted the delay in payments of consumer bills collected through Pakistan Post. Additionally, KE sought support for the clearance of sales tax refunds by the Federal Board of Revenue (FBR) and electricity bill payments by the Sindh government.
Sources indicated that the power division has been pushing for the release of approximately Rs9 billion, of which Rs4 billion is payable to KE, with the remaining amount owed to other distribution companies, including Hyderabad Electric Supply Company (HESCO) and Quetta Electric Supply Company (QESCO).
KE also requested assistance in recovering Rs9 billion from the Sindh government and support for debt write-offs. The finance minister assured that the issue of delayed payments would be addressed but urged KE to handle its payment disputes with the Sindh government independently. Furthermore, KE was asked to forego its markup claims on the Pakistan Post and FBR refunds in exchange for the principal dues.
The KE team expressed readiness to forgo the markup claims and emphasized their ongoing efforts to implement new generation projects to improve the electricity mix. The finance minister encouraged KE to enhance service delivery in Karachi and accelerate plans for cheaper generation capacity to lower electricity costs.
This financial challenge has roots in a 2021 directive from the Ministry of Finance, which halted Pakistan Post’s bill collection services. This change led to a significant accumulation of unpaid bills, forcing distribution companies to resort to costly bank borrowing despite government guarantees.
The KE delegation’s meeting with the finance minister marks a crucial step in addressing the utility’s financial challenges and ensuring smoother operations and service delivery.
Story by Khaleeq Kiani
