ISLAMABAD: Pakistan Post is yet to clear an outstanding amount of approximately Rs 8.8 billion to the power distribution companies (DISCOs) and K-Electric (KE).
Now the Power Division has sought the intervention of the Prime Minister’s Office to help resolve the issue.
Earlier however in an Office Memorandum from February, the power division asked the Secretary Ministry of Communication and Director General (DG), Pakistan Post to clear liabilities of discos pending from July 2022.
According to documents available with Profit, despite repeated requests by the power division to the Communication Division and Pakistan Post, the outstanding liabilities have not been cleared.
“Legally, the Post Office cannot retain the collection on behalf of DISCOs, intervention at the Prime Minister’s Office may help to resolve the issue and stop its recurrence” , read the documents.
Sources in the Power Division have also stated that the DISCOs along with K-Electric (KE) have reported that the Post Offices have retained the collection of electricity bills since July 2021.
This amount had to be transferred to the respective power utility on behalf of the customers, but the post offices have failed to transfer the collected amount, resulting in a huge cash shortfall for the power utilities.
To resolve the issue, the power division took up the matter with the Communication Division and Pakistan Post. Which resulted in the releasing of Rs 20 billion against the outstanding amount of Rs 28.765 billion.
As of March 31, 2023, Rs 3.97 billion of K-Electric along with Rs 4.8 billion of other utilities and is yet to be released by the Pakistan Post, said sources.
These funds would not only help the power sector to meet its financial obligations, and payments to the power producers but also help in mitigating unscheduled load-shedding in the coming summer, said the sources in power division.
It is pertinent to mention that if the communication Division and Pakistan Post release the outstanding liabilities, this would enable DISCOs and KE to recover their bills from customers deposited in the General Post Offices (GPOs) from July 2022.
The pending payment of Rs8.8 billion by the Post Office to power utilities raises concerns about the financial management of the organization. Delayed payments not only create financial strain for the power utilities but also reflect poorly on the credibility and accountability of the Post Office. It is crucial for any institution, especially a government department, to fulfill its financial obligations promptly and responsibly. Addressing this issue and ensuring timely payments will not only foster better relationships with power utilities but also contribute to the overall financial stability and reputation of the Post Office.