Rs 600 billion circular debt resurfaces

KARACHI: Pakistan Economy Watch (PEW) on Sunday said circular debt amounting to Rs 600 billion has resurfaced scaring investors, threatening industrial output and jeopardizing growth rate.

Government has settled circular debt after coming to power, but serious steps were not taken to stop it from reappearing which is disappointing, said Dr Murtaza Mughal, President PEW in a statement issued from Islamabad.

He said that government had not completed any noteworthy power project in the last two years while no major gas deposit had been found which had escalated the energy crisis impacting every person and all sectors of the economy.

He said that the present electricity production is 10,800 MW while demand stands at 15, 500 MW. The current shortfall of 4700 MW will become 7000 MW in the months of June and July.

Mughal said, Uch II power plant has not started production, Nandipur has only wasted 69 billion rupees while development of Neelum-Jhelum project is far from satisfactory.

The power production has decreased while demand is increasing at the pace of eight percent per annum. He said that unending energy crisis in the country suits the objectives of some influential, Mughal concluded.