Circular debt declines Rs 189bn during July-April: Umar

Federal Minister for Planning, Development, Reforms and Special Initiatives Asad Umar on Tuesday said that Pakistan’s circular debt build-up during July-April this fiscal year was recorded at Rs 260 billion against Rs 449 billion reported in the same period last year, witnessing a significant decline of Rs 189 billion or 42 percent.

“Circular debt buildup in Jul-Apr this fiscal year is Rs 260 billion versus Rs 449 billion in the same period last year, a reduction of Rs 189 billion. The full-year circular debt build up this year is expected to be more than Rs 100 billion less than the circular debt build in PML-N last year of government,” said Umar in a series of tweets.

The federal minister said that this ‘huge improvement’ in the circular debt buildup against the last year of PML-N government has been achieved despite massive increase in capacity payments caused by decisions committed by the former government.

“Prime Minister Imran Khan government is improving performance and clearing mess inherited from PML-N in every sector,” he said.

Umar further added that this improvement in energy sector performance and slowdown in buildup of circular debt has been the result of “sustained hard work, analytical data-based decision making and willingness to break the nexus between decision-makers and powerful elite.”