The president of the Korangi Association of Trade and Industry (KATI), Masood Naqi, has expressed concern over the piling up of circular debts of the power sector. Citing media reports, he said the circular debt of the power sector has once again accumulated and risen to Rs 800 billion, and that the IMF has mentioned the situation in its annual report.
Quoting the statistics available, Masood Naqi said that due to low oil prices and betterment of recovery, the financial performance of the power sector had improved in previous years but circular debts have piled up once again. He expressed concern over the fact that power tariffs have not been addressed since along although the required measures in this regard have been demanded repeatedly.
The KATI president noted that the circular debt could cause harm to investments, industrialization and the country's international financial ranking. "Exports have dropped and the cost of production is getting more expensive for industry. In this scenario lower energy prices for industry is a need of the time. Prime Minster Shahid Khaqan Abbasi should take immediate notice of this situation," he demanded.
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