Cash-strapped K-Electric struggling to pay its dues
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The K-Electric has said that due to a mammoth increase in the prices of Re-Gasified Liquefied Natural Gas (RLNG), the company is confronted with a huge challenge in the shape of making payment for its purchases, reported 24NewsHD TV channel.
According to a spokesperson for the K-Electric, the electricity producing company is finding it hard to make payments owing to a whopping hike in the prices of RLNG.
He said that the K-Electric was being provided with 100MMCFD RLNG while the supply of indigenous gas was nil.
Last week, the company made a partial payment of Rs1.5 billion. It also paid Rs500 million yesterday, he added.
The spokesperson said that the company was trying to pay its dues and it was in contact with the SSGC in this connection.
The K-Electric is almost on the verge of bankruptcy as it is struggling to make payment for its purchases.
The company which is vertically integrated power utility in Pakistan, generates electricity from its own production plants with installed capacity of 1875MW and in addition, it has arrangements with external power producers for around 1680MW which include 1100 MW from the national grid.
Reporter Habib Khan