Energy sector debt out of control

ISLAMABAD: For the first time in the history of the country, circular debt in the power sector has crossed a staggering figure of Rs977 billion.

According to details, the government has to pay Rs89 billion to Pakistan State Oil (PSO), Rs70 billion to HUBCO, and Rs73 billion to KAPCO.

Minister for Power Sardar Awais Laghari in his recent statement has already acknowledged the bitter fact that the country will have to bear a huge power sector loss of Rs360 billion this year mainly because of insignificant reductions in the system from 19 per cent in 2013 to 17.8 per cent in 2018.

The government is all set to borrow more loans of Rs80 billion from commercial banks to lay off some arrears of IPPs and some of the PSO.

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