Settlement of Rs514bn circular debt in sight

ISLAMABAD : The Power Division is all set to settle circular debt of Rs 514 billion as of December 2017 aimed at ensuring energy sector’s sustainability and power supply till September next – a period during which General Elections 2018 are likely to be held.

Ministry of Power (Power Division) and Finance Division has deliberated on the issue. Accordingly, following proposals were submitted to the ECC as immediate measures to ease out liquidity issue of the power sector; (i) raising of Rs 80 billion as commercial loan through Power Holding Private Limited (PHPL); (ii) payment of Rs 14 billion against AJ&K subsidies; (iii) payment on account of FATA GST amounting to Rs 14 billion; (iv) budgetary support from Government of Pakistan (GoP); (v) raising of Rs 50 billion through commercial financing against Discos balance sheets and; (vi) issuance of Term Finance Certificate (TFC) to IPPs of appropriate value.

Published in Business Recorder, 19th March, 2018