Soaring circular debt may pose more economic challenges: LCCI

LAHORE: The Lahore Chamber of Commerce and Industry has feared that soaring circular debt would bring in more economic challenges for the country, therefore it should be controlled through disciplinary measures.

LCCI President Malik Tahir Javaid said that rising circular debt is the biggest threat to the power sector and can become a major hurdle in power generation. He said that distribution losses, less recoveries, non-payments are the biggest reasons of heavy circular debt. The power sector has already started feeling the heat of circular debt and situation may further aggravate in the days to come which would hit trade, industry, agriculture and public very hard, he said.

He said that concerned departments have always chosen easy way to allow power distribution companies to charge heavy system losses from consumers. He also urged NEPRA and other concerned authorities not to facilitate and encourage defaulters by writing-offs and putting whole burden on the shoulders of consumers.

Published in Business Recorder, 25th August, 2018