Pakistan Power Sector
Pakistan is facing mounting trouble in power sector as circular debt surges to Rs 2.47 trillion
Islamabad: Imran Khan and his Pakistan Tehreek-e-Insaf (PTI) shattered all previous records as the power sector circular debt during its regime reached the highest level of Rs 2,476 billion in the history of the country, media reports said.
The power sector circular debt has increased by Rs 196 billion to a record high of Rs 2,476 billion during the first six months (July-December) of the Fiscal Year 2021-22 as compared to the same period of the previous year, ANI reported quoting Pakistan Today.
The circular debt increased at a monthly average of Rs 32.50 billion from July to December, the reports said, adding that the volume of circular debt till August 2018 was Rs 1,148 billion which increased to Rs 2,476 billion by December 2021, according to the media report.
The circular debt piles up due to the gap between the cost of electricity generation, transmission and distribution and actual money collected on account of bills including the increase in tariffs and payment of subsidies, the Indian news agency reported.
Pakistan government's decision to increase electricity tariff up to Rs 0.95 per unit following the withdrawal of Rs 20 billion subsidy has compounded the power-consumers problem in the South Asian country.
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