It is good to know that in order to address the longstanding circular debt issue, the federal government has issued the first five-year Pakistan Energy Sukuk-I (PSE-I) worth Rs 200 billion. According to a Business Recorder news item, the issuance of Shariah bond will provide the much-needed liquidity to the power sector and help the government resolve the circular debt faced by Pakistan's economy.
A question that needs to be answered is whether or not this step will help the government resolve the issue of circular debt in the energy sector once for all. I have my doubts in this regard, because successive governments have in fact themselves helped this circular debt monster grow bigger and bigger. After Sukuk, what is next?