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Pakistan Prepares An Exhaustive Strategy To Fight The Circular Debt
By NOSHIN BASHIR On OCT 1, 2019
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IMF plans usually come with the condition to erase the subsidies that the government offers to the masses. Removing the subsidy saves the public sector entity from furthering the loss it makes.
Photo credit AFP.
Circular debt hitting a thousand billion mark paints a gloomy picture of persistent and longstanding energy crises in Pakistan. This kind of debt, in general, arises out of power theft, inefficiencies in the distribution lines, and the government’s inability to recover the total amounts billed to consumers by power companies. The debt haunts both the energy as well as the financial sector.
The government is said to have prepared a comprehensive circular debt reduction plan with quarterly targets for losses, collection, and accumulation of arrears by Discos, a report from the News International read.
Monitoring and incentive framework for strengthening the sector’s performance, improving distribution companies governance’, reducing the implicit government subsidies to particular economic sectors are some of the elements of the plan to reduce the circular debt crisis.
By NOSHIN BASHIR On OCT 1, 2019
0
Share
IMF plans usually come with the condition to erase the subsidies that the government offers to the masses. Removing the subsidy saves the public sector entity from furthering the loss it makes.
Photo credit AFP.
Circular debt hitting a thousand billion mark paints a gloomy picture of persistent and longstanding energy crises in Pakistan. This kind of debt, in general, arises out of power theft, inefficiencies in the distribution lines, and the government’s inability to recover the total amounts billed to consumers by power companies. The debt haunts both the energy as well as the financial sector.
The government is said to have prepared a comprehensive circular debt reduction plan with quarterly targets for losses, collection, and accumulation of arrears by Discos, a report from the News International read.
Monitoring and incentive framework for strengthening the sector’s performance, improving distribution companies governance’, reducing the implicit government subsidies to particular economic sectors are some of the elements of the plan to reduce the circular debt crisis.
