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Power transmission, distribution losses swell to whopping Rs520 billion in FY21-22

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1 year ago

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  • PESCO purchased 16,560 units and sold 10,355 units.
  • IESCO caused losses of Rs21.9 billion; purchased units stood at 13,027.
  • LESCO losses stand at 11.52%, which is equivalent to Rs72.7 billion.

ISLAMABAD: Power sector’s Transmission and Distribution (T&D) losses have surged to whopping Rs520.3 billion with Peshawar Electric Power Supply Company (PESCO) registering the highest-ever deficit of Rs153.8 billion, in just one financial year, The News reported on Monday.

The cash-bleeding power sector’s accumulated losses have crossed the defence spending of the country in the last two financial years, and there seems no sigh of relief for the masses without undertaking basic and fundamental reforms.

The question arises as to why the board members of these loss-making power distribution companies (DISCOs) are not being appointed on merit. The answer is that such appointments are used as a tool for doling out benefits to politically motivated favourites instead of making decisions on merit.

According to the official data available with The News, the total purchased units were 130,158 gigawatt hours (GWh), out of which sold units stood at 107,860 units; so the lost units stood at 22,298 units of GWh in the financial year 2021-22. The target losses of T&D are envisaged at 13.41%, but actual losses went up to 17.13% in the financial year 2021-22.

PESCO purchased 16,560 units of GWh of electricity and sold 10,355 units, so the lost units stood at 6,205 of GWh. Losses of PESCO stand at 37.47% and those went up to Rs153.8 billion in money terms in the current fiscal year. The losses of Tribal Electric Power Company (TESCO) stand at 9.33% and at Rs3.7 billion in money terms. Total purchased units stood at 2,284 units and sold units 2,071, so the lost units of electricity estimated at 213 of GWh.

The losses of Islamabad Electric Power Company (IESCO) stand at 8.18%, which caused losses of Rs21.9 billion in money terms. The total purchased units stood at 13,027 and sold units were 11,961, so the lost units of electricity were estimated at 1,066 units of GWh.

The Gujranwala Electric Power Company (GEPCO) losses stand at 9.07% to the tune of Rs24.7 billion.

The Lahore Electric Power Supply Company (LESCO) losses stand at 11.52%, which is equivalent to Rs72.7 billion. The lost units in case of LESCO are estimated at 3,264 units of GWh in the fiscal year 2021-22.

The losses of Faisalabad Electric Power Company (LESCO) stand at Rs33.4 billion, equivalent to 9.1%. The losses of Multan Electric Power Company (MEPCO) stood at higher side, amounting to Rs75.1 billion. The losses of MEPCO stand at 14.84%.

The losses of Hyderabad Electric Power Supply Company (HESCO) have gone down from 38.55% in 2020-21 to 32.88% in 2021-22 and in financial term stood at Rs45 billion.

The losses of Sukkur Power Supply Company (SEPCO) remained unchanged and stood at 35.27% in 2020-21 and 35.62% in 2021-22. In financial terms, the losses of SEPCO stand at Rs43.7 billion.

The losses of Quetta Electric Supply Company (QESCO) stood at 28.07% and in financial terms escalated to Rs46.3 billion in financial year 2021-22.

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With its second-largest surge ever, PSX approaches 114,000 points.

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2 days ago

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Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

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In interbank trade, the Pakistani rupee beats the US dollar.

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1 week ago

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In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

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Phase II of CPEC: China-Pakistan Partnership Enters a New Era

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1 week ago

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The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.

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