Massive circular debt, due to expensive power agreements by past governments: Shibli

ISLAMABAD: Minister for Information and Broadcasting Senator Shibli Faraz Wednesday said circular debt did increase due to expensive power agreements by previous governments, without streamlining the transmission and distribution network and removing impediments for new renewable energy projects.

Speaking at a press conference along with Special Assistant to Prime Minister for Petroleum Nadeem Babar, he said the present government with its robust and successful strategy, had brought down use of furnace oil from 23 percent to three percent at the power houses.

The present government was accountable and answerable to the people, he said and added there was a big demand gap of electricity during the winter and summer seasons.

Shibli said it was responsibility of the government to put forth facts before the people.

He said the government had to face huge circular debt due to expensive agreements signed by the previous governments and added these international agreements could not be changed.

He pointed out the current government had held formal talks with the Independent Power Producers to sort out the issue.

The minister said the past governments did not raise the tariff because of political objectives and this was the main reason for the increase in the circular debt.

He said current government inherited the circular debt and there was no work done on distribution and transmission and the focus was just on generation and added the surplus electricity had become a problem for the government.