LAHOREThe dissolution date of Pakistan Electric Power Company (PEPCO) is likely to be extended in a Ministry of Water and Power meeting scheduled to be held in Islamabad on June 15th, it is learnt. The government had earlier announced June 30 as the closing down date of the power management company, the PEPCO. The officials of power sector believe that the dissolution of the PEPCO, about Rs 250 million annual loss-making management company, might create further problems for the power sector before the completion of the 'home-work, a high official of the company on condition of anonymity told The Nation. 'Home-work means the settlement of the circular debt of billions of rupees, capital transfer to eight distribution companies, settlement of power tariff formula for the DISCOs and other power sector reforms including the legislation issues. If the company is dissolved, the official added, then 'we must understand that this IMF-led governments decision would do nothing to resolve the power crisis. It is worth mentioning here that the government in connection with the proposed dissolution of PEPCO has already completed the formation of the independent Board of Directors of the DISCOs and also stated that the IMF has held its about $11 billion bailout package for Pakistan before the government introduces power sector reforms and addresses other subsidy and tax-related issues in the country. Quoting some officials of Power Ministry, the source disclosed that the Power Minister Syed Naveed Qamar did not want the dissolution yet, however, the official added, the Planning Commission was the main advocate of the immediate closing of the PEPCO. The source said that the circular debt in the power sector was now more than Rs 500 billion and it was increasing day by day. Within a month, the source said, it increased with the speed of Rs 20 billion. The government needed huge capital to disburse among the DISCOs so that the distribution companies could run independently, which was still not possible by the cash-strapped government, the official doubted. 'Six distribution companies excluding LESCO and FESCO are loss making utilities, I do not know how the government can eliminate subsidy to those companies, the source added. In another development, this is also learnt that four independent power producers, Liberty Power, Atlas Power, Nishat Power and Nishat Chunian have threatened the government to suspend power supply of 825MW if their dues were not cleared. The sponsors of the IPPs on Monday sent a letter to the PEPCOs management giving a 30-day deadline to clear its Rs 16.5 billion outstanding dues, the official sources informed The Nation. The sources referring the letter said that the four IPPs, established during last three years, had cleared upon the PEPCO that now it was difficult for them to produce electricity in the presence of the circular debt. The PEPCO owed Rs 3.5 to 4.5 billion each of these four IPPs, the source added.