LAHORE – As per the plan already shared with International Monetary Fund (IMF), federal government has initiated the process of reducing circular debt of gas sector.
Ministry of Finance has approved release of Rs415 billion to bring down gas circular debt presently estimated at Rs1600 billion.
As per the insiders, the amount will be released during next week to bring gas circular debt below Rs1200 billion.
As per the officials, funds will be released after approval of already shared plan by the global lending agency.
Earlier, IMF asked Pakistan to further increase electricity and gas tariffs for easing pressure on energy sector.
The government had already enhanced electricity and gas tariffs in accordance with the agreement signed with the IMF for getting a bailout package.
Welcoming increase in the interest rate, IMF also wanted Pakistan to strict the monetary policy further to decrease the inflation.
