Pepco arrears against Kesc exceed Rs83 billion

KARACHI: Karachi Electric Supply Company (Kesc) failing to make payments has accumulated arrears beyond Rs83 billion payable to Pepco. The government had sold Kesc for Rs16 billion cash and Rs4 billion of preferential shares only with the intention of improving the Kesc performance. Initially, Saudi Group, Kanooz al Watan had obtained its 73 percent shares along with management control, but the purchaser didn’t make any further investment for increasing the production capacity and improving the Kesc system. Instead with the installations of new meters, Kesc bills were enhanced by 70 to 100 percent and despite that payments to Pepco were not being made. Besides, during these four years, Kesc financial costs of bank loans have been increasing and the loans amount at the end of September 30, 2008 has surpassed Rs66 billion, while total loss of Kesc has reached up to Rs57.45 billion.