Recoveries push up circular debt to over Rs750bn

The Ministry of Power Division said on Monday that power recoveries of distribution companies have increased the circular debt to over Rs750 billion and consequently DISCOs have been unable to invest in power infrastructure.

The acknowledgement came from the Ministry of Power Division first time in the backdrop of the discussion that lack of investment in transmission lines has been causing frequent tripping and loadshedding, especially in remote areas.

The ministry admitted during a meeting of the Planning and Development Sub-Committee of the National Assembly, presided over by Sher Akbar Khan, that governance issues in the power sector have pushed up circular debt to an unsustainable level.

Published in Business Recorder, 13th March, 2018