WB shows displeasure over rising circular debt

Following the tradition of the International Monetary Fund, the World Bank has also started dictating its conditions to the government as the international bank expressed its serious reservations over the increasing load of circular debt in Pakistan, reported 24NewsHD TV channel.

Sources divulged to News24 on Monday that the World Bank had shown its displeasure over the government’s decision not to raise power tariff. The bank was articulated about its reservations over the ballooning of circular debt. It showed its dissatisfaction over the government’s pace to implement the plan for slashing the circular debt and demanded of the government to provide a roadmap in this regard.

Sources said that the government was deliberating on different suggestions pertaining to reduce the circular debt. There is a proposal to increase subsidy of the power sector in order to bring down the debt, sources said adding that the power plants agreements would also be reviewed.

Reporter Waqas Azeem