Fresh circular debt piles up to Rs566bn

ISLAMABAD: The fresh flow of circular debt has built up to Rs566 billion in addition to old stocks of about Rs500bn parked in a special purpose vehicle, accumulating the total liability to about Rs1.066 trillion.

This was reported to a special committee of the Senate on circular debt by the Power Division at a meeting on Wednesday where the power distribution companies claimed that almost Rs100bn circular debt was caused by unjustified sales tax collections by the Federal Board of Revenue even on unrealised bills.

Published in Dawn, 2nd August, 2018