Power ministry seeks Rs1.54 trillion to settle circular debt
- By Web Desk -
- May 05, 2023
The Ministry of Energy sought Rs 1.54 trillion from the ruling government to settle the power sector’s circular debt, ARY News reported on Friday.
According to the sources, the International Monetary Fund (IMF) imposed a condition to settle the circular debt for power generation companies in the fiscal year 23-24.
Sources revealed that the Ministry of Energy’s loan demand is staggering as the government has already presented the plan to IMF, adding that the government has increased the power tariff and reduced the subsidy twice, however, the circular debt continues to be a major challenge for the power sector.
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In the requested amount, more than 70 per cent or Rs 634 billion is more than estimated electricity subsidy.
The ruling government has already added Rs419 billion to the circular debt of the power sector in the first eight months of the current fiscal year after which the circular debt has now reached Rs2.67 trillion.