The International Monetary Fund (IMF) has asked Pakistan to submit a comprehensive plan to eliminate the gas sector’s circular debt, which has surged to Rs. 2,800 billion, official sources told ProPakistani.
To support repayments under the plan, the government is considering imposing a petroleum levy of Rs. 3 to Rs. 10 per liter, which could generate an estimated Rs. 180 billion annually. Additionally, a gas bill surcharge is also under discussion as a further repayment mechanism.
The federal government has begun formulating a debt resolution strategy that also includes seeking bank loans of up to Rs. 2,000 billion on concessional terms. Negotiations are ongoing with banks for possible interest waivers or reductions, particularly on Rs. 800 billion of outstanding interest, sources said.
The proposed plan includes phasing out repayments over five years. However, officials noted that eliminating circular debt will also require addressing the significant operational losses being incurred by the Sui gas companies and other state-owned oil and gas firms.
The tax, levies n duties r the only capabilities of government to increase revenue. Investment opportunities, incentives for industrial n business n better employment opportunities r not their concern.
Form 47 govt will continue such practices to squeeze blood of awam, and will not bring back their looted Tax money into main money stream of the the country, which is more than IMF LOAN MONEY.
No plan. No strategy to reduce circular debt. Don’t know how to improve efficiency. Not prepare to abolish/ reduce free electricity as perk to elites. Only way left is to increase electricity rates for common man.
Dear not only electricity even all the utilities and all kind justified or unjustified Taxes too.
100 % agreed
if good quality EVs are introduced many people with excess solar capacity will switch