Islamabad, Sep 9: The federal government has notified the International Monetary Fund (IMF) that the circular debt of the power sector is expected to increase by Rs. 100 billion during the current fiscal year.
It is anticipated that the total circular debt will surpass Rs. 2.55 trillion by June 2025.
According to current data, the circular debt of the power sector has already increased by Rs 2.4 trillion.
The IMF has encouraged the government to act quickly to contain circular debt, expressing displeasure with the way it has being managed. Preventing the circular debt from rising above Rs. is one of the main demands made to the IMF.
The problem still exists even after Pakistan promised the IMF that prompt tariff adjustments would be made to reduce circular debt. Complicating matters further was the government’s inability to handle the debt in line with the agreed-upon share plan last year.
According to sources, Pakistan’s circular debt cannot exceed the agreed-upon ceiling of Rs 2.31 trillion for the current fiscal year.
