Circular debt swells to over Rs 400 billion

Author: Afzal Bajwa

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.

Share
Leave a Comment

Recent Posts

  • Technology

Digital Innovation: Transforming Pakistan’s Trade Infrastructure

  Pakistan's logistics industry stands at a critical crossroads, grappling with significant challenges that impede…

3 hours ago
  • Top Stories

EU expresses concern over military court sentences against May 9 rioters

The European Union (EU) has expressed concern over the sentencing of 25 individuals involved in…

4 hours ago
  • Pakistan

Ahsan Kamray Elected President of Lahore Garrison University Alumni Association

Lahore Garrison University (LGU) celebrated a milestone event as its Department of Mass Communication organized…

4 hours ago
  • Fashion

Neo Hum Bridal Couture Week 2024: Grand Finale Celebrates Fashion and Social Change

Lahore, Pakistan – December 22, 2024 – The highly anticipated finale of Neo Hum Bridal…

4 hours ago
  • Top Stories

US lifts $10 million bounty on new Syrian leader after talks in Damascus

The United States has removed a $10 million bounty on Ahmed al-Sharaa, the leader of…

4 hours ago
  • Pakistan

Accountability Court postpones verdict in £190 million case

An accountability court hearing the £190 million case involving Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan…

4 hours ago