Islamabad [Pakistan] August 21 (ANI): A report from the Pakistan Ministry of Energy showed that circular debt has almost doubled in the last three years in the country despite a regular increase in electricity prices.
In the final circular debt report for the fiscal year 2020-21, the ministry reported that debt has reached Rs 2.28 trillion in the country due to the government’s failure to address losses in electricity, Express Tribune reported.
Earlier, Imran Khan‘s party had promised to bring down the circular debt to zero by December 2020 but it has almost doubled from Rs 1.148 trillion to 2.28 trillion after Pakistan Tehreek-e-Insaf (PTI) came in power.
Circular debt is a public debt that is a cascade of unpaid government subsidies, which results in the accumulation of debt on distribution companies.
Pakistan government has been making efforts to improve the efficiency of the power sector but the situation of the power sector remains fragile despite putting an additional burden of Rs 150 billion on consumers in the past year by increasing electricity prices, showed the summary, Express Tribune reported.
Earlier, PTI had added Rs 464 billion in the circular debt while it added Rs 538 billion in the next year. (ANI)
