Energy sector circular debt touches record Rs922bn

Pakistan’ energy sector’s circular debt is estimated to have gone beyond a record Rs922 billion mark by end of November 2017.

According to a report submitted to the parliament this week, the Ministry of Finance has put the amount of circular debt at Rs472.678bn as of November 30, 2017.

The report, however, did not explain that another Rs450bn debt was separately parked with Power Holding Private Limited (PHPL) — a subsidiary of the power division — created to raise funds from commercial banks and is financed through surcharges built into the consumer tariff.

Published in Dawn, 2nd March, 2018