Pakistan power sector circular debt touches Rs 800 billion
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Pakistan power sector circular debt has now gone beyond Rs800bn, significantly higher than Rs685bn about seven to eight months ago, Pakistan Electric Power Company (Pepco) officials have said.
It is parked equally in Power Holding Ltd and accounts of distribution companies.
This figure includes both old stock and fresh accumulation. The figure is at an acceptable level, they said, even though the stock of arrears was around Rs400bn.
They claimed the amounts that are still not reconciled and reported on balance sheets could not be taken as circular debt.
A gap of this size should be seen as normal in an annual business of over Rs1.2 trillion, they added.
