Apprehensions Of Chinese Investor In Power Sector

Chinese firms are making feasibility report to evaluate the landscape of Pakistan's energy sector. With startling revelations, they made about the involvement  of government for delayed payments. Ultimately, the burden has shifted to the consumers. Beijing’s investors have the keen interest to revamp the power sector for profit generation. Every to and fro department is plagued with circular debt in the power sector. Thus, they have to bear the burnt of ‘penal interest charges. 

The whole circumstances came under the garb after the rental IPPs- Independent Power Projects. Despite  their installation in 2008, still power sector hobbled with interrupted payments of debts. However, in 2013 the ruling party made hefty payments of $ 500 million to get out from this quagmire. No doubt, It has direct correlation with the liquidity of banks; therefore, the whole power structure will be in the state of mumble-jumble after payments in piece meal rather than the lump sum. 

To get out from this scourge of circular debt, government has taken prudent measures on time barred rather than to perpetual delayed interest charges. When IPPs were in heydays, their stringent policies had restricted for timely payments despite availability of funds. These delayed payments have added insult to injury after IPPs got hardball from government. 

The Regulatory bodies are involved in dirty politics to pile up stacks of unrealized expenditures. Thus, they dripped away the resources from the exchequer. All concerned authorities must refuse to indulge into derogatory affairs. When the power plant came under the burden of debt, CEOs simply shut down it and squandered away all the resources with exemptions for payments to creditors. 

Consequently, all the burden has shifted to ultimate consumers. Chinese firm found another factor, which become the important cause of myriad risks involved for win-win solutions. All risks are not mitigated by the government before the installation of the power plant. To redress these issues in power sector, government has started timely payment for each due relief package. So, they must not encounter with new era of fresh accumulation of debts under their shoulders.

However, anytime, soon or later, this problem can resurface in the future. Notwithstanding, it’s an open secret that K-electric is about to be sold to a Chinese sponsor. They found startling claims by concerned authorities in written acknowledgment. These acknowledgments are for safe-guarding interests of power generators rather than to address the grievances of consumer. They are ‘entitled to recover money from consumers in case failure of payment from any government entity. These revelations are spread like a wild fire, where, consumers are facing discriminatory treatments despite payment on time for their utilities. No one knows, when the affairs of general masses will be guarded with due care.  

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