PTI government comes up with innovative plan to pay off circular debt
ISLAMABAD - PTI government has come up with an innovative plan to payoff circular debt of power sector.
The meeting of the Economic Committee of the Cabinet has approved getting Islamic Financing Facility to reduce the circular debt in the energy sector.
The ECC had recently directed the power and finance divisions to prepare a joint plan for raising Rs 300 bln Islamic financing by mortgaging assets of Discos.
The amount will be used to clear a portion of circular debt of the energy sector which has now touched Rs700 bln in addition to Rs 600 bln parked in the books of Power Holding Private Limited (PHPL).
The meeting also discussed issuance of the Government of Pakistan Guarantee to National Power Parks Management Company.