Circular debt of power sector touches highest level of History

Circular debt of power sector touches highest level of History
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ISLAMABAD - The circular debt , loans and liabilities of the power sector have surged to an all-time high of Rs1,155 billion.

They include Rs575 billion in outstanding payments and loans of Rs580 billion parked in the Power Holding Private Limited. Meanwhile, the amount owed to Pakistan State Oil has increased to Rs331.5 billion. Collectively, they pose a threat to the smooth functioning of the power sector.

Power division officials also told the cabinet that previous government's claim to have brought an end to electricity load-shedding were incorrect, a senior official said.

Balochistan, Sindh and Khyber Pakhtunkhwa provinces were still subject to power cuts because of a 4,000-megawatt shortfall caused by shortcomings in the national electricity distribution system, the cabinet was told.

The prime minister instructed the power division to formulate workable proposals for uninterrupted power supplies to the industrial sector and the supply of electricity at affordable prices.

Economy