No more Circular Debt by 2020 in Pakistan, PM Imran Khan

No more Circular Debt by 2020 in Pakistan

PM Imran Khan was briefed in a high-level meeting that the circular debt is likely to be brought down to Rs.293 billion during the current year and by 2020, it would be Rs.96 billion. However, it would completely overcome the end of next year.

Officials of the Ministry of Power informed the PM that circular debt had increased by Rs.450 billion in 2017-18. The ongoing reforms in the power sector will eliminate the drawbacks in power transmission, measures to restrict power theft and cope with the issue of circular debt.

A fresh power policy will also be introduced which will incur alternate power sources to fulfill the demand and supply deficit. Under this policy, a total of 20% of the electricity would be produced from alternative resources by 2025, which would enhance 30pc by 2030.

To counter the line loses by theft or by technical/transmission issues, fruitful steps were taken. As reported, 27,000 FIRs were registered against the involved while 4,225 people and 433 officials from the power sector have been arrested. Moreover, other 1,467 officials had been charge-sheeted. Power capacity has enhanced by 3,000 megawatts, by overcoming the 15 major shortcomings.

Per capita, the energy consumption of Pakistan is around 500 kilowatt, which is almost 700kW less than the region, 2,400kW less than China and more than 7,000kW less than developed countries.

“The meeting was attended by Minister for Power Omar Ayub Khan, Finance Advisor Abdul Hafeez Sheikh, Special Assistant to the Prime Minister (SAPM) on Petroleum Nadeem Babar, SAPM on Information Dr Firdous Ashiq Awan, PM Spokesperson Nadeem Afzal Chan, SAPM Yousuf Baig Mirza, Power Division Secretary Irfan Ali and other senior officers”, a PM Office statement said.

I am an accountant with over 3 years of experience in the field of Accounts and Finance. I contribute to e-Syndicate as Researcher and News Writer. I write about Finance, Business, Local Pakistani News and International Finance.