ISLAMABAD: Pakistan’s energy sector’s circular debt has expanded by Rs1179 billion in last three financial years. In FY21 ended in June 2021, the overall energy sector’s circular debt mounted to Rs2,327 trillion. In the preceding fiscal year i.e., FY20, the circular debt stood at Rs1.612 trillion.
In the last three years, circular debt rose by almost Rs1.179tn as it was at Rs 1.612 trillion in FY19 and Rs1.148 trillion in FY18.
Observing circular debt at record high level, the Cabinet Committee on Energy (CCoE) decided to pace up efforts for fast-track implementation on oil crisis report including transfer of additional powers to Oil & Gas Regulatory Authority (Ogra) to regulate oil marketing sector.
Planning Minister Asad Umar chaired the meeting of the cabinet committee on energy. The CCoE supported a final position of all the stakeholders on allocation of pipeline capacity and tie-in mechanism before the next meeting to secure final investment decisions (FIDs) from investors of two additional merchant LNG terminals. The CCoE observed some discouraging signs for the investors having stakes in energy sector who had paid different fees and made other expenditures so far.
