The financial burden for payments to Independent Power Producers (IPPs) has surged to Rs. 1,800 billion. According to sources, IPPs are exerting significant pressure on both the Ministry of Energy and the Ministry of Finance to receive upfront payments.
Reports indicate that funds are being disbursed for IPP payments, with simultaneous requests for improved fuel supply. However, concerns about potential delays in IPP payments have raised alarm about potential energy production cuts. There are apprehensions regarding incurring late payment surcharges despite government assurances.
Finance Ministry insiders further disclosed that the energy sector’s revolving credit has risen to Rs. 2,310 billion. To meet immediate requirements, approximately Rs. 140 billion is set to be disbursed this week for IPP settlements.
