ISLAMABAD – The rising circular debt of Rs 1400 billion has been consideredas the worst blow for the Pakistan economy stabilisation.
The Pakistan Economy Watch (PEW) on Sunday said circular debt is quietlyrising to an extent that it has become a threat which can devastate theeconomy.
The infamous debt has marched across Rs1400 billion but a serious effort totackle the issue is yet to be seen, it said.
The issue of circular debt should be resolved on war-footing lest itbecomes a tsunami for the troubled economy, said Dr Murtaza Mughal,President PEW.
He said that the circular debt was Rs922 billion in November which has nowclimbed to over Rsw1400 billion while the reason behind fast escalationcannot be ascertained at the government level.
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Dr Murtaza Mughal said that concerned authorities are not interested incontaining power theft, reducing losses and improving recoveries but theyprefer to hide the facts from the government despite knowing the threat itposes to the economy.
The government should develop a foolproof system for monitoring the debt,determine its reasons and take steps to overcome it.
