Pakistan releases Rs140 bln to power plants on IMF condition
- By Web Desk -
- Dec 29, 2023
ISLAMABAD: Following the International Monetary Fund’s (IMF) condition, Pakistan has released Rs140 bln to the government-run power plants to address circular debt in the energy sector, ARY News reported on Friday, quoting an official document of the finance ministry.
As per details, Pakistan has to slash the circular debt of the energy sector by Rs400 billion during FY2023-24 as per the International Monetary Fund’s condition.
The finance ministry document showed that Rs57 billion has been released to Karachi-Electric to address the circular debt issue. Pakistan is likely to release Rs260 bln to the power sector and Rs65 bln to the gas companies in 2023-24, the sources said.
Pakistan is currently in the IMF’s SBA program and trying its best to meet the requirements of the next staff-level agreement.
Read more: No plans to ask Pakistan to raise taxes on salaries, IMF clarifies
Earlier, the Pakistani government gave assurance to the International Monetary Fund (IMF) on maintaining the power sector’s circular debt at Rs2.31 trillion.
The Power Division presented the details before the Senate Standing Committee for Power today. The caretaker federal government assured the IMF to maintain the circular debt of the power sector.