Energy SAPM Tabish Gauhar says that the government has a Debt Management Plan to tackle circular debt, and has predicted that without its implementation it will lead to circular debt doubling to Rs 4.6 trillion in the two years to 2023, from the present Rs 2.3 trillion. He also mentioned that the circular debt had been Rs 1.1 trillion when the PTI took office. He has mentioned as a consequence that tariffs would have to be hiked, clearly implying that the coming hike, of Rs 4.50 per unit, will only cover current debt stock, not future debt. It is likelier than not that the problem will blow up in its face in an election year. Mr Gauhar has said that the Prime Minister does not want to raise tariffs any further.

Source: Pakistan Today April 11, 2021 17:26 UTC