The Ministry of Energy asked the ruling government for Rs 1.54 trillion to settle the power sector’s circular debt.
According to sources, the International Monetary Fund (IMF) placed a demand for power-producing businesses to settle their circular debt in fiscal years 23-24.
According to sources, the Ministry of Energy’s loan demand is staggering, despite the fact that the government has already presented the plan to the IMF, and that the government has increased the power tariff and reduced the subsidy twice, but the circular debt remains a major challenge for the power sector.
More than 70% of the requested amount, or Rs 634 billion, exceeds the expected electricity subsidy.
The ruling government has already added Rs419 billion to the power sector’s circular debt in the first eight months of the current fiscal year, bringing the total to Rs2.67 trillion.