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ISLAMABAD: Pakistan’s circular debt in the energy sector has crossed an alarming level of Rs4,177 billion.
Also read: Circular debt of gas sector rises to Rs900 billion
According to media reports, Pakistan’s energy sector is now believed to be managed entirely on credit as the country’s economic situation gets deteriorated with each day passing.
Reports suggest that the circular debt in the energy sector is also swelling as the government is unable to pay dues to independent power producers (IPPs), and the same is increasing at a rate of Rs129 billion yearly.
Also read: Circular debt surges to whooping Rs2.47 trillion
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.
