ISLAMABAD: In spite of significantly increasing electricity prices, the power sector circular debt during Pakistan Tehreek-e-Insaf (PTI) has broken all previous records as the circular debt reached the highest level of Rs 2,476 billion in the history of the country.
According to media reports, the power sector circular debt has increased by Rs 196 billion to a record high of Rs 2,476 billion during the first six months (July-December) of the Fiscal Year 2021-22 as compared to the same period of the previous year.
The circular debt increased at a monthly average Rs 32.50 billion from July to December, the reports said, adding that the volume of circular debt till August 2018 was Rs 1,148 billion which increased to Rs 2,476 billion by December 2021.
The circular debt piles up due to the gap between the cost of electricity generation, transmission and distribution and actual money collected on account of bills including increase in tariffs and payment of subsidies.
