Connect with us

Hi, what are you looking for?

Latest News
• Police contingents deployed on entry and exit points of Islamabad • 4 drivers die of starvation in Makran due to closure of Pak-Iran border • Shireen Mazari slams UK for putting Pakistan on red list of travel ban states • Over 200 Pakistanis deported from Iran • Plan to hold NA session amid covid surge on the table • Punjab launches crackdown against sugar hoarders • Establishment Division refuses to disclose civil servants’ assets • Boarding school to be set up in Koh-i-Suleiman: CM Buzdar • FM Qureshi urges orderly pull-out of troops from Afghanistan • Terror threat has ‘moved’ from Afghanistan: US • American call for US police reform at fresh protest over Daunte Wright’s killing • US, China commit to climate cooperation ahead of summit • Germany mourns its 80,000 Covid dead at memorial • 19 members of Pakistani squad test negative for Covid, start practice against Zimbabwe today • Bollywood’s Arjun Rampal tests positive for Covid
News Alert
    • PM lays the foundation of Margalla Highway
    • PM Imran Khan makes a promise to the nation
    • We'll campaign  internationally  in a way that no one will dare to demeans Muhammad (SAW): PM
    • Covid Updates: 5,152 cases reported while 73 deaths recorded in last 24 hrs
    • Currently, 82,276 cases are active in the country
    • The death toll reaches 16,316 in Pakistan
    • 3,362 people recovered in last 24 hrs
    • The current positivity rate is 8.56% in the country 


Govt Plans Not to Revolve in Circular Debt Forever

The mitigation plan is aimed at improving recoveries over a period of three years

The circular debt mitigation plan was approved by Cabinet Committee on Energy (CCOE) on Monday in order to curtail losses and improve recoveries over a period of three years.

The debt mitigation plan covers the period FY21 to FY23 which will help cut the flow of circular debt from the current Rs538 billion per annum to less than Rs112 billion per annum.

Moreover, the cabinet body on energy was informed that the power sector could add Rs538 billion to the circular debt if the corrective measures proposed in the circular debt mitigation plan were not taken.

The Power Division informed the CCOE meeting that pending policy decisions contributed more than 70% to the circular debt.

It further projected that in 2023, the circular debt would rise to Rs1.258 trillion from Rs881 billion in 2022 and Rs436 billion in 2021 if the government failed to take measures.

The committee was informed by the Power Division that collections by distribution companies would rise 5.73% and losses would fall 2.12% following implementation of the circular debt mitigation plan.

However, the Power Division warned that the circular debt would jump by Rs495 billion per annum if the Water and Power Development Authority (Wapda) paid net hydel profit (NHP) in line with the AGN Kazi formula.

The plan also proposed an increase in tariff. The Power Division estimated the increase under the quarterly tariff adjustments in October 2021 at Rs1.59 per unit. It will reduce the burden by Rs97 billion in FY22 and by Rs54 billion in FY23.

It was also informed that the tariff would rise by Rs1.39 per unit in July 2021, which would have a financial impact of Rs181 billion.

The plan also envisages technical losses of 17% in FY21, 16.32% in FY22 and 15.70% in FY23.

According to a statement, the CCOE meeting, chaired by Federal Minister for Planning, Development and Special Initiatives Asad Umar, discussed the summary of the comprehensive Circular Debt Management Plan (CDMP) 2021, which covered the three-year period from FY21 to FY23, described the mechanisms and initiatives to address the issues and suggested an action plan to control the circular debt with a monitoring matrix.

The CCOE approved the summary presented by the Power Division to ensure the effective management of circular debt.

Written By

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *




India made astonishing record of Covid surge on Wednesday crowds of pilgrims gathered for a religious festival despite oxygen shortages and strict curbs in...


At $2.7bn, the remittances were up 20% compared to February and 43% compared to March 20. Total $21.5bn during July-March FY21, up 26% over...


Pakistani actress Sara Khan, wife of singer Falak Shabir has been admitted to hospital due to poor health. Husband, Falak Shabir turned to social...

Latest Updates

4 people dead, over 300 policemen in Punjab, including 97 in Lahore, had sustained injuries

Copyright © 2021 The Truth International