Economics & Business

Power sector circular debt surges over Rs 130b

The National Assembly has been informed that the power sector is facing huge difference between expenditure on power generation and income that has resulted in huge circular debt of 130 billion rupees. Minister for Natural Resources Syed Naveed Qamar responding a call attention notice said that due to this huge burden Pakistan State Oil is also facing difficulties and its payable circular debt has been raised up to 145 billion rupees. He said the situation demands massive injection of funds from the federal government which could only be generated with the cooperation of the National Assembly. He said PSO has also to pay 85 billion rupees to the oil refineries as payment of oil which has also worsened the situation.

Syed Naveed Qamar said the government is considering to float special bonds besides eliminating subsidies in the power sector. He said the government will also have to increase power tariff to overcome this circular debt. The call attention notice was moved by Raja Muhammad Asad Khan and others regarding poor financial condition of Pakistan State Oil due to heavy circular debt.

The House which is transacting private members’ business today passed the Privatization Commission (Amendment) Bill 2009 moved by Dr. Donya Aziz. Under this Bill two members from the National Assembly and two from the Senate will be included in the Privatization Commission. Supporting the Bill Minister for Privatization Waqar Ahmad Khan hoped this Bill help ensure transparency and level playing field in privatization process besides attracting more investment.-NNI

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Mian Ahsan Liaqat

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