Energy sector: Major step taken towards reducing circular debt

ISLAMABAD: Caretaker Prime Minister Anwaar-ul-Haq Kakar directed the Ministry of Energy to prepare and submit a comprehensive and sustainable plan after consultation with the Finance Ministry to reduce the circular debt of power and gas sectors.

The caretaker prime minister directed this during a review meeting he presided over on the action plan to reduce the circular debt in the energy sector.

He stated that soon after coming into government, the caretakers have taken steps to restore the economy on a priority basis. He further stated that the caretaker government is taking all possible steps to reduce the circular debt.

Circular debt reduction: MoF objects to plan tailored by minister

Kakar added that all the stakeholders have to work together to reduce the circular debt. He maintained that anti-electricity theft operation has improved significantly the recovery of billed amount of the power distribution companies. The review meeting primarily was held to discuss action plans to reduce the circular debts of petroleum and power sectors.

The meeting attended by caretaker federal ministers, Dr Shamshad Akhtar as well as Muhammad Ali and relevant officials were given a detailed briefing on the current situation of circular debt of petroleum and energy sectors. The meeting was also presented some suggestions to reduce the circular debt of various companies.

Upon this, the caretaker premier, according to the Prime Minister’s Office, directed the Ministry of Energy that after consulting with the Ministry of Finance a comprehensive and sustainable plan should be formulated to lessen the circular debt.

Copyright Business Recorder, 2024