JS Securities Limited - JS Research.

Karachi -- May 05, 2021 (PPI-OT)

First tranche to selected IPPs expected soon

After the Information Minister's press conference yesterday where he announced the government's decision to soon pay 40% of the dues to IPPs, the Prime Minister's office has clarified that the Cabinet has so far approved the sub-committee to look into the delays of the said payments.

The ECC is expected to once again take up the decision of payment to IPPs today. In light of the Information Minister's announcement, the prospects of resolution of the matter are surely better (refer to Table for current Net Receivables on Page 2). We highlight here that the IMF too has set a target of May-2021 for the first payment to IPPs.

News reports suggest the government has decided to soon pay Rs90bn to IPPs that fall under 1994 Policy (and before) under the first payment while the reported Rs60bn payment to IPPs under the 2002 Policy may take time.

Earlier it had...