Pakistan’s circular debt crosses Rs4.177 trillion

ISLAMABAD: The circular debt of Pakistan’s energy sector has crossed an alarming level of Rs4,177 billion, ARY News reported on Tuesday, citing sources familiar with the development. 

With the country’s economic situation getting appalling, the documents have revealed that Pakistan’s energy sector is running completely on credit.

The circular debt in the energy sector is also swelling as the government is unable to pay dues to independent power producers (IPPs).

The energy sector’s circular debt is increasing Rs129 billion yearly, the sources said.

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Furthermore, the circular debt of the electricity sector has reached Rs2,277 billion, while Pakistan State Oil’s (PSO) debt has crossed Rs600 billion. The country’s national oil company has sought Rs80 billion from the finance ministry to save its letter of credit from defaulting.

Similarly, the circular debt of the gas sector has reached Rs1,400 billion. The sources feard that the energy supply chain might get affected due to a massive rise in circular debt.
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