Islamabad: The federal government on Thursday constituted a committee to review the proposed borrowing plan for clearing the liabilities of power distribution companies (Discos), a news source reported.
This committee has been tasked with reviewing the plan for raising PKR 200 billion from commercial banks in order to repay the liabilities of Discos. It will submit its recommendations to the authorities concerned following the completion of the review procedure.
Previously, the government had proposed this borrowing plan when it issued its second set of Islamic bonds, titled ‘Pakistan Energy Sukuk-2’, on the pattern of ‘Energy Sukuk-1’(which is a Shariah-compliant instrument).
The borrowing process will be carried out following pledging the assets of the power companies. To facilitate this measure, the Ministry of Finance will offer a government guarantee for loans repayment.
Meanwhile, the Power Division has stated that it has collected an additional amount of PKR 106 billion during the six months of the previous fiscal year (October 2018-May-2019). The sum include recoveries from defaulters and receipts from individuals involved in power theft.
