A new forensic report has revealed that Jahangir Khan Tareen’s group among those responsible for the losses incurred by the power sector.
Inquiry committee formed to probe the alleged minting of billions of rupees by Independent Power Plants (IPPs) in its report said Tareen’s group earned Rs3.85 billion through two power plants — JDW two and three, these plants used to work on bagasse.
According to the report, Makhdoom Omar Shehryar’s power plant — attached to the RYK Sugar Mills — also ran on bagasse and earned Rs 1 bn in profits.
Meanwhile, the power plant belonging to Salman Shahbaz’s Chiniot Sugar Mills earned a sum of Rs 1.33 billion.
The committee pointed out that Pakistanis being provided electricity at the most expensive rate in the region. It said that private companies provided false oil statistics to secure better tariffs. In accordance with the power policy of 1994, 16 private companies invested Rs 50.80bn and to date, have earned a profit of Rs 415 bn. The committee further said that investors of these private companies paid 22 times the profit to their business partners.
The findings stated that 2,934 MW power projects installed under the 2002 power policy. Private companies involved under this policy invested Rs 57.80 and to date, have earned a profit of Rs 203 bn.
Two companies built power projects under the 2015 power policy. One of the companies earned a profit of 71% on its investment in one year. The other company earned a 32% profit on investment in a single year.
The power generating companies portrayed they had used more oil to produce electricity when they had, in fact, made use of less oil. As per the inquiry committee’s findings, these companies earned an additional Rs 64.22 bn over the past nine years because of the oil figures they showed. By the same proportion, these companies will earn Rs 145.23 bn more in the future, said the inquiry committee.
Eight projects installed under the power policy of 2013. Under the same framework, these companies paid Rs 6.33 bn more. Hence, from 2002 to 2020, these companies have been paid Rs 565.88 bn more.
The committee said that the Jamshoro Power Plant and Sahiwal Coal Power Plant cost $660,000 per megawatt and $1,000,000 per megawatt respectively. From 2005 to 2010, the production cost of electricity increased by 148%.
The power sector received payments of Rs 3,202 bn from 2007 to 2019 while the subsidies paid during the same era amounted to Rs 2,860 bn. Liquidity payments worth Rs 142 bn made.
Earlier In 2019, Rs 465 bn added to the circular debt. In 2007, Pakistan’s government debt 52% of its GDP and by 2019, it increased to 85% of the GDP.