ISLAMABAD – The Pakistan Economy Watch (PEW) has warned over the Rs 1300billion circular debt faced by Pakistan.
PEW on Sunday said the circular debt has again resurfaced and isthreatening the fragile national economy.
The infamous power sector debt has surpassed Rs1300 billion and there is noway in sight to tackle it which is adding to the problems of thegovernment, it said.
The government has decided to issue Rs200 billion Sukuk bonds to handle thedebt which will calm down the issue for a year or two but not resolve theproblem, said PEW president Dr Murtaza Mughal.
He said that past governments have promised reforms in the power sector butdid nothing concrete while a former finance minister announced to bury thedebt forever in 2013 but left it unresolved before leaving the country toavoid accountability.
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The incumbent government had promised to resolve the issue of circular debtduring the election campaign and now it should come up to its promise, headded.
Dr Murtaza Mughal said that the government has decided to issue Sukuk bondsagainst the 43 assets of power generation and distribution companies whichwill not only help it handle the problem and also help boost the Islamicfinance industry.
