Govt may issue Sukuk-II to raise Rs200bn for retiring circular debt

ISLAMABAD: The Pakistan Tehreek-e-Insaf(PTI) government may issue  Sukuk-II for raising Rs200 billion in a bid to retire mounting circular debt, a local newspaper reported.  

It has been learnt that the Power Division has initiated the process to issue the Sukuk-II for raising Rs200 billion after getting a competitive interest rate of the loans from a consortium of banks.  The Power Division will soon submit a summary in this regard to the Economic Coordination Committee (ECC) for approval. The circular debt has crossed Rs1.8 trillion in the power sector while the existing volume of loans and liabilities parked in the Power Holding Private Limited currently stand at Rs804 billion. The consortium of local banks will pledge the assets of DISCOs and GENCOs to offer the loan.

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