Cut in circular debt: FPCCI leader for benefiting consumers

KARACHI: Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Amaan Pracha has demanded that the benefit of the significant reduction in the power sector’s circular debt be passed on to electricity consumers.

He stated that there has been a reduction of Rs. 700 billion in circular debt, bringing it down from Rs. 2,300 billion to Rs. 1,600 billion.

He added that the main reasons for this decrease are reduced electricity losses, improved recoveries by Discos (distribution companies), and savings from renegotiated agreements with IPPs (Independent Power Producers).

Therefore, the government should significantly reduce electricity tariffs to help alleviate the financial burden on trade and industry.

In addition, Amaan Pracha appreciated the decision of the Economic Coordination Committee (ECC) to approve a technical supplementary grant for the electric vehicle subsidy, the payment of remittance scheme claims, and the provision of free electric bikes to high-performing students of public colleges under the subsidy scheme.

Copyright Business Recorder, 2025