More than Rs1200 billion were paid to 26 such power plants across the country from 2015 to 2024, as per the data on the capacity payments made to power plants running on imported fuel over the last decade has come to light.
The payments continued uninterrupted, even during periods when the plants were shut down or experiencing breakdowns.
According to documents released by the Central Power Purchasing Agency (CPPA), these payments were made to power plants operating on imported gas and furnace oil.
Specifically, 11 power plants installed under the power policies of 1994 and 2002 run on imported gas, while 15 plants use furnace oil.
During the last 10 years, more than 758 billion rupees were paid to furnace oil plants, and 536 billion rupees were disbursed to imported gas plants.
The CPPA document also highlights serious inefficiencies within these power plants. Many of them were identified as operating at the bottom of the merit order due to their high fuel consumption and low efficiency in generating electricity, earning them the label of "white elephants."
Numerous technical faults were reported, with some plants being shut down for extended periods and others only being operated when absolutely necessary.
Despite these issues, all plants continued to receive capacity payments, adding to the financial burden on the government.
Sources indicate that it may take another month to provide detailed data for the period before 2015, suggesting that the total payments over the years could be even higher. The findings raise concerns about the cost-effectiveness and sustainability of relying on imported fuel for power generation in Pakistan.
