Jahangir Tareen says not responsible for power sector losses

A day after a local news outlet published a report alleging that Jahangir Khan Tareen’s group was among those responsible for the losses incurred by the power sector, the Pakistan Tehreek-e-Insaf (PTI) leader denied the accusation and said that they had billed the Central Power Purchasing Agency (CPPA) in accordance with the contract.

Quoting the results of an inquiry committee formed to probe the alleged minting of billions of rupees by Independent Power Plants (IPPs), the report had claimed that Tareen’s group earned Rs3.85 billion through two power plants — JDW two and three, adding that these plants used to work on bagasse. It had also claimed that Makhdoom Omar Shehryar’s power plant — attached to the RYK Sugar Mills — also ran on bagasse and earned Rs1 billion in profits. It had further claimed that the power plant belonging to Salman Shahbaz’s Chiniot Sugar Mills earned a sum of Rs1.33 billion.

Taking to Twitter, Tareen said that that the “latest mud-slinging news” about his company’s powers over billing CPPA was “totally wrong”. He said that they had billed the company according to contract and CPPA had deducted Rs3.9 from them.

He added that his company has also appealed against the deduction in the high court and the case is currently in process.

The report had stated that Pakistanis were being provided electricity at the most expensive rate in the region. It added that private companies provided false oil statistics to secure better tariffs.

It had also stated that in accordance with the power policy of 1994, 16 private companies invested Rs50.80 billion and to date, have earned a profit of Rs415 billion. It had added that investors of these private companies paid 22 times the profit to their business partners.

The report had stated that 2,934MW power projects were installed under the 2002 power policy. Private companies involved under this policy invested Rs57.80 and to date, have earned a profit of Rs203 billion, it had added.

It had also stated that eight projects were installed under the power policy of 2013 and under the same framework, these companies were paid Rs6.33 billion more. Hence, from 2002 to 2020, these companies have been paid Rs565.88 billion more, it had added.

It had further stated that the power sector received payments of Rs3,202 billion from 2007 to 2019 while the subsidies paid during the same era amounted to Rs2,860 billion. Liquidity payments worth Rs142 billion were also made, it had added.

The report further stated that in 2019, Rs465 billion were added to the circular debt. In 2007, Pakistan’s government debt was 52 per cent of its Gross Domestic Product (GDP) and by 2019, it increased to 85 per cent of the GDP.