Federal Minister for power Sardar Awais Ahmed Khan Leghari said the government has made a record reduction of Rs 780 billion in circular debt within one year. Circular debt has been a huge burden on Pakistan’s economy, rising from Rs 1,100 billion in 2018 to about Rs 2,400 billion before PML-N returned to power. By controlling theft, losses, renegotiating power purchase agreements, and cutting interest rates, the government saved billions and reduced circular debt significantly. The remaining Rs 1,225 billion circular debt has been resolved through an agreement with 18 banks, promising to eliminate this debt within six years. The current surcharge of Rs 3.23 per unit will be eliminated in 5-6 years as well. The minister highlighted the reforms will boost investor confidence and benefit consumers by improving the energy sector’s financial health.
Prime Minister Shehbaz Sharif officially launched this historic circular debt reduction scheme recently.
