World Bank (WB) expressed serious concerns over power sector’s rising circular debt which already ballooned to Rs1241 billion during last six years, reported 24NewsHD TV channel on Monday.
According to World Bank, the circular debt increased gradually from Fiscal Year 2019-2021 while during Fiscal Year 2022 to 2024 the ratio was lower.
World Bank said that from Fiscal Year 2019 to Fiscal Year 2021 circular debt reached to Rs1128 billion, while during the same period of FY 2022-24 an increase of Rs113 billion was registered in circular debt.
The volume of circular debt of power sector was registered at Rs2393 billion in FY 2024 by the World Bank.
During Fiscal Year 2018 circular debt of power sector was Rs1152 billion. In Fiscal Year 2019 circular debt touched to Rs1612 billion.
The World Bank said that during Fiscal Year 2020 circular debt was reached to Rs2150 billion, while in FY2022 circular debt touched Rs2253.
During Fiscal Year 2023 the volume of circular debt was Rs2310 billion, according to the World Bank.
Reporter: Waqas Azeem