Mounting circular debt

What a shame that officials of the Ministry of Water and Power admitted before the subcommittee of a National Assembly’s Special Committee on Energy Crisis that it was due to defective strategy that had led to increase in the circular debt to the tune of Rs 711 billion. At the time when PPP assumed power, the circular debt was recorded at Rs 161.21 billion. According to these officials, electricity theft, non-recovery of massive bills and production of electricity from outdated power plants, the circular debt has touched Rs 872.41 billion figures. The meeting of the subcommittee which was chaired by its convener, Shahid Khaqan Abbasi was also informed by these officials that the situation in the coming summer would be worst if immediate measures were not taken without any further delay. These officials argued that the situation could not improve till the private sector is encouraged to start producing electricity. People are suffering debilitating blackouts and yet receiving inflated bills. With India blocking water flow in three main rivers and Indus river not being fully utilised for power generation, the spectre of drought and famine has started to stare us in the face. The federal as well as the provincial governments have to join forces to find out a solution.

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