Former Prime Minister of Pakistan – Shahid Khaqan Abbasi, during one of his last interactions with the media, said that the only way to overcome the menace of circular-debt is to privatize all the power-distribution companies.
The Former Prime-Minister substantiated his advice with the fact that; Except for K-Electric, which has regularly paid its dues against the electricity, provided by the government, all other Distribution-Companies (DISCOs) in Pakistan had defaulted on payments. Mr. Abbasi expressed his confidence that privatization of DISCOs is a crucial decision, with the potential to transform Pakistan’s power-sector.
During his recent interview with a private television channel, Mr. Abbasi highlighted that; Major causes of the rising circular-debt, include the losses incurred by Power-Distribution companies, due to power-theft. The fact that the privatized K-Electric had no contribution in circular-debt, further supports the government’s plans to facilitate private investment in DISCOs.—PR