Pakistan power sector circular debt worsens
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The Economic Committee of the Cabinet held its meeting in Islamabad but did not take a decision on the Ministry of Water and Power’s proposal to rollover Rs47 billion circular debt obtained in the past to clear dues of the power producers and oil and gas marketing companies.
This debt is currently parked in a holding company and the government is paying an interest on the total debt estimated at over Rs400 billion.
This is in addition to Rs400 billion flow of the circular debt.
The Ministry of Water and Power had sought the ECC to refinance this debt on the grounds that this will reduce the cost of borrowing by over Rs900 million per annum.
