Circular debt piling up fast to Rs600b level

KARACHI: The circular debt in the country’s power sector reached a new height of 600 billion rupees on Thursday.
An increase in loadshedding all over the country is likely due to the ugly situation of circular debt.
According to PEPCO sources, K-Electric has to pay dues of 56 billion rupees.
Power sector of Pakistan State Oil and other departments have to pay dues of 230 billion rupees out of which 40 billion rupees have to be paid to local and multinational refineries.
PSO has asked government to urgently release 10 billion rupees.
In case of non-payment of circular debt, the supply of furnace oil to the power generation companies would be reduced which will worsen the situation of electricity in the country.