Centre in Rs114 billion debt of Punjab govt

The federal government could not repay the liabilities of the Punjab government in the heads of hydel profit and other sectors as the federal government payables to the province have mounted to Rs114 billion. Besides this, the federal government is also struggling under the enormous pressure of circular debt which has astoundingly swollen to Rs2,379 billion, reported 24NewsHD TV channel.

Sources informed 24NewsHD on Friday that the Punjab government’s liabilities on the federal government hovered around Rs114 billion and the Punjab treasury department made a request to Chief Minister Usman Buzdar to nudge the federal government for the release of the said amount. 

According to the break-up, the federal government has to pay Rs57 billion under the head of Net Hydel Profit (NHP); Rs44 billion under wheat procurement; Rs10 billion under PRA and FBR cross adjustment; and Rs3 billion under the head of Rawalpindi Metro Bus Service to the Punjab government.

Sources say the Punjab treasury department has requested CM Buzdar to talk to the federal government for the repayment of liabilities so that this money could be spent on the service delivery of the province.

On the other hand, a big increase in the circular debt has been observed in Sept 2021 that is Rs85 billion. With this, the total circular debt in power sector has reached Rs2,379 billion. 

Sources reveal that from July to Sept 2021, the circular debt was ballooned by Rs99 billion. In the same period, the average monthly increase in the circular debt was observed Rs33 billion.

During 37 months of the present government, the circular debt was raised by Rs1,231 billion. The volume of circular debt in Aug 2018 was 1,148 billion and it reached Rs2,379 billion in Sept 2021. In June 2021, the volume was Rs2,280 billion.

Since the creation of Pakistan till Aug 2018, the circular debt was Rs1,148 billion. 

Reporter Waqas Azeem