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