ISLAMABAD: A committee formed to probe the losses in the power sector has alleged that the governments’ failures to contain the circular debt had cost the country over Rs4,082 billion during the past 13 years, with an annual loss of Rss370bn. While the cumulative budgetary support to the power sector amounted to Rs3,202bn from FY 2007 to FY 2019 comprising Rs2860bn as budgetary subsidies and Rs342bn as other liquidity injection, the debt continued to grow. While most IPPs had an investment payback period of 2-4 years, profits generated were as high as 18.26 times the investment and dividends 22 times the investment. Similarly, six companies earned an average annual Return on Equity (RoE) between 60-79 per cent and four companies earned RoE of around 40pc. During the last 8-9 years of operation, these companies earned Rs203bn in profits against their combined investment of Rs57.81bn.

Source: Pakistan Today April 17, 2020 18:17 UTC