Circular debt curtailed by Rs408 in FY21: minister

Hamza HabibOur Correspondent

04th Aug, 2021. 07:01 pm
World Bank

ISLAMABAD: The circular debt has been curtailed by Rs408 billion in the outgoing fiscal year, a senior government official said on Wednesday.

During a meeting with the World Bank delegation, led by its Vice President for South Asia Hartwig Schafer, which called on him, Federal Minister for Energy Hammad Azhar said that due to the effective government measures, the surge in the circular debt is being curtailed to a considerable amount.

During the last fiscal year 2020/21, an amount of Rs130 billion was added, whereas in the previous year 2019/20 Rs538 billion was added in the circular debt.

The minister informed the delegation that around 20 per cent increase was witnessed in the peak demand for electricity during this summer, which is a good omen for the energy sector and the economy.

The Power Division plans addition of a considerable capacity in the existing transmission network by the end of the current fiscal year, for which funds have also been allocated, he added.

Azhar underscored the importance of the World Bank assistance in expansion and modernisation of Pakistan’s electricity transmission system.

Acknowledging the efforts by the Ministry of Energy in curtailing the circular debt, the World Bank official renewed the commitment to continue working with the government of Pakistan in the energy sector.

Pakistan has the potential of achieving a growth rate of 6 per cent to 7 per cent. He also stressed on the closer working between the experts group of the Ministry of Energy and the World Bank for achieving the targets.

During the meeting, matters related to the World Bank-funded ongoing projects in the energy sector also came under discussion.

Special Assistant to the Prime Minister on Power and Petroleum Tabish Gauhar, secretaries of the power and petroleum divisions, Pakistan’s executive director at the World Bank Naveed Kamran Baloch, World Bank Country Director for Pakistan Najy Benhassine and other senior officials attended the meeting.

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