- Finance Minister considering plan to reduce the stock of circular debt in both power and gas sectors by dividends or issuance of term finance certificates
ISLAMABAD: Finance Minister Ishaq Dar is considering a plan to reduce the stock of circular debt in both power and gas sectors by dividends or issuance of term finance certificates (TFC).
Sources said that Finance Minister has sought a viable plan from the Ministry of Energy during a meeting on energy sector reforms on Saturday to reduce the stock of circular debt through dividends or TFC. He was informed by the Ministry of Energy during a presentation that the stock of circular debt in the gas sector was increased to Rs1,549 billion.
Sources further stated that the meeting was specific about the problem of circular debt in the energy sector and the finance minister sought a viable plan from the Energy Ministry to reduce the circular debt in a way that there is no increase in the tariff of gas and power. Dar said to have directed the ministry to come up with a plan to reduce or eliminate the circular debt through dividends or TFC. The plan would be presented to the prime minister for his approval before going for its implementation.
The meeting was attended by the Minister of State for Finance and Revenue, Dr Aisha Ghaus Pasha, Minister of State for Petroleum MusadikMasood Malik, Special Assistant to Prime Minister (SAPM) on Finance Tariq Bajwa, Secretary Finance, Secretary Power, and senior officers attended the meeting.
The meeting discussed introducing various reforms in the energy sector and issues of stock and flow of circular debt in the sector.
The finance minister, highlighting the importance of reforms in the energy sector, said that reforms are crucial in energy sector for the economic growth of the country.
The minister added that the present government puts priority to address the issues of energy sector including circular debt in order to bring financial sustainability of the sector and economic growth of the country. He further directed the relevant authorities to make viable solutions for the settlement of all issues of the energy sector.
Copyright Business Recorder, 2022