Pakistan’s energy sector running ‘on tick’ as economy reflects bad shape

Author: Agencies

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 documents available with SAMAA TV containing details of dues of the energy sector revealed that it is running on credit amid the poor economic situation.

The documents disclosed that Pakistan State Oil (PSO) is facing a severe liquidity crunch as its circular debt has soared past Rs615 billion as gas and power companies fail to clear their dues. As per documents, Pakistan International Airlines (PIA) had purchased oil worth Rs43 billion from PSO but the national flag carrier hasn’t cleared the dues yet.

Similarly, the power plants are also purchasing oil from PSO on credit. Besides this, the power sector has outstanding dues worth Rs177 billion and gas companies have around Rs394 billion under oil and liquefied natural gas (LNG) purchases.

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