Pakistan’s circular debt rising by Rs50b per month

The economic situation in the country is set to get worsen day by day as there is an increase in the circular debt of the country at an alarming pace, the 24News TV reported Saturday.

According to sources, the circular debt broke all the country’s record and has reached a new high of Rs2253billion.

The circular debt is increasing at an alarming pace of Rs50billion per month and if it continues the same trend, the circular debt of the country will be doubled in the next five years.

Chairman Nepra has also verified that the circular debt has reached at a record level in the country.

According to sources, in the last fiscal year, the circular debt had wiped off one-third of the budget. The government has not paid Rs1150billion to the power companies.

The sources said the government failed to recover Rs1178billion from the defaulters. Electricity consumers have not paid Rs509billion. There are Rs238billion outstanding in agriculture tube-well electricity bills.

The K-Electric company is defaulter of Rs137billion for the consumption of fuel. The federal and the provincial governments have also not paid Rs249billion in electricity bills.