Finance ministry releases Rs53 billion to ease off circular debt

ISLAMABAD: The Finance Ministry has released Rs53 billion to the Power Division to help pay off the country’s soaring circular debt — the payables involving the power sector.

According to sources in the division, the funds have been released to pay off fuel and electricity payments related to the Pakistan State Oil and Independent Power Producers.

The payment is part of a decision by the economic coordination committee of the cabinet last month wherein it was agreed to release Rs80 billion to pay off the circular debt.

When the present Pakistan Muslim League-Nawaz government came to power in 2013, it had made a one-time payment of Rs480 billion to settle the circular debt. 

However, the amount has again reached a staggering Rs541 billion, according to official figures.