Business

Soaring circular debt a challenge for the govt

KARACHI: Contrary to the pledges of the government authorities in containing the rising circular debt of the power sector, the problem seems to have further aggravated with repeated increase in debts, ARY News reported.

The government was supposed to pay Rs4.9 billion to the power companies under the circular debt, however it could only manage to pay Rs2.74 billion.

The earlier clearance of debt by the PML-N government was widely bragged by the ministers, but since that point the government could not control the increasing circular debts.

The total debt amount has reached Rs 534 billion. Sources informed that the provinces owed Rs 134 billion under the head of circular debt. According to power companies, they have recorded sharp decline in monthly recoveries as well.

K-Electric is also supposed to pay Rs 33 billion to the national grid.

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