Circular debt settlement plan hits snags

ISLAMABAD: Power Division’s circular debt settlement plan has reportedly hit snags as the Auditor General of Pakistan (AGP) is reluctant to conduct pre-audit of IPPs invoices make payment of Rs 80 billion, well informed sources told Business Recorder.

The undue delay on part of AGP may lead to shut down of power plants due to financial woes causing load shedding in summer season

The economic coordination committee (ECC) had approved a circular debt settlement plan on March 7 and decided to immediately pay Rs80 billion to power producers and fuel suppliers out of Rs514 billion worth of dues aimed at easing their financial constraints.

Published in Business Recorder, 29th March, 2018