Pakistan’s circular debt has been reduced by 564 billion rupees by making payments to the power plants in the last financial year.
According to details, the country’s circular debt currently stood at Rs2.253 trillion even after paying Rs564 billion to power plants.
Sources said that the debt of power projects of the China-Pakistan Economic Corridor (CPEC) crossed Rs220 billion. The government repaid Rs50 billion for the CPEC power project in June, they added.
Sources further claimed that investors of CPEC’s power projects have expressed reservations over the rising circular debt. Meanwhile, the International Monetary Fund (IMF) also raised objection to expensive power plants. The federal government has indicated to end the circular date of CPEC power project. Sources added that the government has assured payment to CPEC power project if energy rates are reduced.—INP