Plan afoot to clear circular debt
The incumbent government is reportedly preparing another plan to clear energy sector’s circular debt which is hovering around Rs 525 billion mark piled due to continuous poor performance of power sector despite creation of new Ministry i.e. Ministry of Energy by clubbing together Power Division and Petroleum Division, well-informed sources told Business Recorder.
The new stock of Rs 525 billion circular debt is over and above Rs 430 billion already parked in the books of Power Holding Private Limited (PHPL) on behalf of power Distribution Companies (Discos) who are paying interest on the amount, which implies that the overdue amount against the power sector stands at Rs 955 billion.
Published in Business Recorder, 31st January, 2018