The energy sector circulation debt hits Rs 1665 trillion as reported by the Ministry of Energy officials, as reported by the Ministry of Energy officials to the PAC sub-committee yesterday which was cheered Leader of the House in Senate Shibli Faraz.
They also informed that they have come up with new plans to upgrade the distribution and transmission which can help in reducing the circular debt.
Thi plan has already been supported by Asian Bank and the World Bank. However, it still needs to be approved by IMF by Friday.
The shortage of electricity distribution was briefed by the Ministry of Energy officials to the committee and the measures which can be taken on it.
Credit will be borrowed in order to reduce the circular debt of the energy sector. In the first go, Rs 100 billion will be borrowed for which a proper guarantee will be given.
It was also revealed that Rs229 billion were taken from October 2018 to October 2019 and the recovery process has shown improvement by 1.13% as compared to last year.
The National Transmission and Distribution (NTDC) officials told the committee that financing projects will be finalized by June next year. Power issues in Baluchistan were also discussed in the meeting.