Circular debt issue: Federal government faces the blow

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Circular debt issue: Federal government faces the blow

ISLAMABAD - The circular debt issue has taken the toll on the Pakistan economy as at least five Independent Power Producers have been shutdown across the country.

As per the media report, Five independent power producers (IPPs) have suspended electricity generation and 17 others are operating at just 46 percent of installed capacity, because of the liquidity crisis brought about by the Rs1.3 trillion circular debt, a senior Power Division official disclosed.

The non- payment of dues by the government has brought about the closure of the Hubco, Nishat Chunian, Nishat Power,

Lalpir and Pakgen IPPs. Kapco has also reduced its power output, the official told The News on condition of anonymity. The Federal Minister for Energy, Omar Ayub Khan, has convened an emergency meeting with the management of the affected IPPs tomorrow to seek a resolution to the crisis.