Power Division submits plan to tackle rising circular debt, tariff - News Summed Up

Power Division submits plan to tackle rising circular debt, tariff


ISLAMABAD: The Power Division has submitted a comprehensive circular debt management plan to the federal cabinet, recommending to clear Rs435 billion worth principal loan of power plants under China-Pakistan Economic Corridor (CPEC) in the next 13 years instead of making immediate payments. Circular debt is expected to reach Rs 2587billion till June 2021 despite all governmental actions. Sources said that the federal cabinet, while advising the Power Division to pass on a little burden of the power tariff on the citizens, has directed finance minister and SAPM on Power and Petroleum Tabish Gauhar to submit a final report in this regard within two weeks. “The power tariff for consumers will possibly witness reduction with such measures whereas, coat will be priced at $30 per tonne after witnessing a decrease from $50 to $60 per tonne. More over, the Power Division further recommended that the government should negotiate with the Sindh government for decreasing coal price and change in pricing formula in a bid to end the dollar indexation.


Source: Pakistan Today May 06, 2021 16:03 UTC



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