Circular debt hits Rs1.14 trillion, being serviced through tariff

ISLAMABAD: The power division on Friday reported that the circular debt at the end of June 2018 stood at Rs1.148 trillion, including Rs583 billion parked in a holding company and that all of it is being serviced through consumer tariffs.

Testifying before a special Senate committee presided over by PTI Senator Shibli Faraz, joint secretary (power) Zargham Ishaq Khan said loans of the power sector worth a total of Rs618bn had been transferred to the Power Holding Company Limited (PHCL).

However, since some loans had already been paid for or rolled over, the outstanding debt in the PHCL books now stood at Rs582.86bn. This also includes a mark-up of Rs153bn. On top of this, the debt outstanding against distribution companies (Discos) amounts to Rs566bn.

Published in Dawn, 18th August, 2018