ISLAMABAD: Mostly state-owned energy sector of Pakistan is fast slipping into hot waters, as notorious circular debt has starting ballooning again beyond Rs 400 billion mark, an official told this scribe on Wednesday.
According to the official who requested anonymity, the government faced with political upheavals resulting in reshuffling of portfolios, including that of the prime minister, had failed to arrange private borrowing to ease down the ever-pilling-up circular debt.
At the beginning of the current financial year in June, the government had planned to borrow about Rs 100 billion from the private sector, mainly banks, to ease out revolving payables/receivables of the energy sector companies. “This was to be done in two phases,” the official said, adding, “Not even the first phase’s arrangement of Rs 55 billion could be materialised.” The second reason for increasing of the circular debt, he said, was that the three government ministries – involved in estimation and catering to this bubble of revolving liabilities – were not on the same page.
Published in Daily Times, November 9th 2017.