Minister for Finance and Revenue Senator Mohammad Ishaq Dar on Friday chaired a meeting to finalise modalities and framework to bring sustainability in the energy sector and improve macro-economic indicators of the country, the Ministry of Finance shared via its official Twitter handle.
The meeting was attended by Minister of State Petroleum Musadik Masood Malik, Special Assistant to Prime Minister on Finance Tariq Bajwa, SAPM- Revenue Tariq Pasha, Secretary Petroleum, and other government officials.
The meeting resorted to bring sustainability in the energy sector, including measures to reduce the circular debt in the gas sector.
Despite massive increase in power tariff after coming into power, the ruling coalition of Pakistan Democratic Movement has failed to overcome the vicious cycle of circular debt.
The government increased base tariff of electricity by Rs4.96 per unit from July 1, 2023, across the country as per understanding with the International Monetary Fund taking base tariff up to Rs29.78 per unit, premised on revenue requirement of Rs3.281 trillion, based on different yearly economic assumptions.
In February, 2023, Minister of State for Finance Dr. Aisha Ghaus Pasha said reforms in the energy sector were critical for the economy, and the Ministry of Energy had shared with the International Monetary Fund as to how it would reduce the circular debt of the power sector.
Energy Minister Engineer Khurram Dastgir Khan in May, 2023, told the National Assembly during a question hour that as of December 2022, the circular debt had stood at Rs2.536 trillion.
Later, Prime Minister Shehbaz Sharif chaired a high-level meeting before the Budget’24 in June to discuss budget proposals regarding the energy sector. He was given a detailed briefing on reforms in the energy sector and projects included in the budget.
During that meeting, the prime minister directed to make the energy sector reforms part of the budget and wanted the new electricity projects to be started from alternative sources in a phased manner by minimising the dependence on expensive imported fuel. He also directed to include effective measures to curb line losses and electricity theft in the upcoming budget and wanted the inclusion of wind and solar energy projects in the upcoming budget.