20000419

Centre, Sindh

pay KESC Rs 877m

cumulative dues

ASHRAF KHAN

KARACHI: The Karachi Electric Supply Corporation (KESC)regained near financial normalcy after the federal as well Sindh governments paid off cumulative dues of Rs.877 million.

The liquidity position has significantly improved since the Federal Ministry of Finance and the government of Sindh made the payments. However, a spokesman of KESC on Tuesday attributed cash flow improvement to the induction of the armed forces in the management of the corporation.

He said KESC's revenue collection per month had increased to Rs. 2000 million where as it was Rs. 1665 million on an average before the army took over in May last. With improvement in the collection, KESC had been making advance payments to Pakistan State Oil (PSO) for the supply of furnace oil and to the Sui Southern Gas Company (SSGC) for gas supply.

He further explained that the Term Finance Certificates (TFCs) were issued to clear the outstanding dues of Wapda, PSO, SSGC and others. An amount of Rs. 6566 million was payable to Wapda as on December 30, 1998 for the supply of energy, which was paid to Wapda.

Further, the spokesman said that the KESC was vigorously pursuing federal and Sindh governments for recovery of the receivables and had already received arrears of Rs. 138 million from Sindh government, and another Rs. 100 million are expected to be released by the province shortly against the arrears.

KESC also received Rs. 739 million from the Ministry of Finance as reimbursement of GST, the spokesman confirmed- PR.