Pakistan Economy
Pakistan's circular debt in energy sector swells to Rs 2.358 trillion in 7 months
Islamabad: Pakistan's growing economic troubles is getting more clear as troubling energy sector’s circular debt has reached Rs 2.358 trillion during the first seven months (July, 2021-Jan, 2022) of FY 2021-22 compared to Rs 2.331 trillion in corresponding period of 2020-21 due to reduction in amount parked at Power Holding Limited (PHL) and Gencos payables to fuel suppliers, media reports said.
However, growth in circular debt flow has been recorded at over 114 percent to Rs 2.358 trillion as compared to Rs 1.1 trillion when PTI took over the federal government in August 2018 due to inefficiencies and incompetence at Discos’ level, informed sources told Business Recorder.
Minister for Energy, Hammad Azhar is all set to hold a technical meeting with the International Monetary Fund (IMF) on power-related issues on Mar 7.
The sources told Business Recorder that a growth of 11.5 percent has been recorded in payables to power producers which have risen to Rs 1.4 trillion during July-Jan, 2021-22 from Rs 1.255 trillion despite the fact that the government paid a substantial amount to IPPs as per revised pacts.
The sources said Gencos payable to fuel suppliers have reduced to Rs 83 billion during the first seven months of current fiscal year from Rs 99 billion in the same period of the previous fiscal year.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
