ISLAMABAD (Dunya News) – Federal Energy Minister Awais Leghari has claimed that Pakistan’s long-standing circular debt problem will be wiped out within the next six years.
Speaking to the media in the federal capital, Leghari said circular debt has been nothing but a thorn in Pakistan’s side, but the government has been burning the midnight oil to tackle it.
He noted that during the PTI government, circular debt ballooned to record levels. “Our government has already slashed the debt by Rs1trillion,” he said, adding that power sector losses have also been brought down.
The minister pointed out that revisiting agreements with Independent Power Producers (IPPs) has saved the country billions of rupees.
He said the government has also curbed losses in distribution companies and worked out a banking solution for Rs1,225 billion worth of circular debt.
“Within six years, circular debt will be history,” Leghari vowed, stressing that strong performance and tough reforms are the key to achieving this goal.
He further said reforms in the energy sector remain the government’s top priority, and once the circular debt is settled, consumers will finally breathe a sigh of relief with lower electricity bills.