Rs441 bn circular debt to cause power outages

The government has entered 2018 with monster of circular debt of Rs441 billion in power sector which is destined to create the cash flow situation in future that will result in power outages not because of the non-availability of power but because of the liquidity crisis, top officials at Power Division told The News.

According to Zargham Eshaq Khan, joint secretary (power), the circular debt stands at Rs441 billion; however, the relevant mandarins claimed that circular debt has swelled to over Rs520 billion. The loans and liabilities of over Rs400 billion of power sector have been parked in PHPL (Power Holding Company Limited) and if the PHPL loans are included then the circular debt factually stands at Rs920 billion. The power sector receivables have surged up to Rs850 billion.

Published in The News, 3rd January, 2018