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Friday, May 31, 2024  
22 Dhul-Qadah 1445  

IMF expresses serious concerns over uncontrolled circular debt in Pakistan

The circular debt in the energy sector has surged by Rs 150 billion
The image shows the IMF website. Photo via the IMF website
The image shows the IMF website. Photo via the IMF website

The International Monetary Fund (IMF) has expressed strong concerns over the uncontrolled growth of circular debt in Pakistan.

The circular debt in the energy sector has surged by a staggering amount of Rs150 billion, raising alarms about its potential impact on the country’s economy.

There are apprehensions that the circular debt could reach a daunting Rs2.5 trillion by the end of the current fiscal year.

The IMF had set a target to control the circular debt at Rs 2.31 trillion for the ongoing fiscal year, urging an increase in tariffs for power and gas.

For the next financial year, the IMF seeks to increase tariffs for power and gas; however, negotiations are ongoing with the IMF mission with the officials of the Ministry of Energy.

Read more

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Despite expensive electricity and gas, circular debt balloons to over Rs5 trillion

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