Electricity consumers will continue to bear the financial burden of Pakistan’s power sector circular debt, as the government plans to collect Rs. 278 billion through a debt servicing surcharge during the current fiscal year, Finance Ministry sources informed ProPakistani.
Sources said a major portion of this amount will be used to meet interest payments linked to the power sector’s mounting circular debt. Around Rs. 156 billion is expected to go toward servicing interest obligations, while the remaining Rs. 122 billion will be allocated for repayment of the principal amount.
Sources in the Finance Ministry said that, in principle, repayment of the principal should reduce the overall stock of circular debt. However, the proposed Circular Debt Management Plan does not clearly indicate a visible decline in the total debt burden despite these repayments.
At present, electricity consumers are paying a debt servicing surcharge of Rs. 3.23 per unit on their power bills. The surcharge was imposed by the federal government specifically to generate funds for the settlement of circular debt accumulated in the power sector over the years.
Officials acknowledged that reliance on surcharges remains a key tool for managing the debt, but it continues to add pressure on consumers already facing high electricity tariffs and rising living costs. The issue has drawn concern as households and businesses struggle with increasing utility expenses.
The Finance Ministry maintains that servicing the circular debt is necessary to prevent further disruption in the power sector, even though the financial impact is largely being passed on to electricity users.
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All this money is looted by mafia Pakistan, n9w to be recovered from poor awam.
True. GOVT SHOULD DECREASE ITS OWN EXPENDITURE AND EXPENSES RATHER THAN PUTTING FURTHER LEVY ON THE POOR MASSES. LAW OF JUNGLE PREVAILS IN OUR COUNTRY
welldone gan*oos.
Why people pay interest amount as this is due inefficient bureaucracy. I think government appointment should be done by normal appointment process followed by private sector instead of PSC or Cẞsc
People must know the details of this horrible debt, from where it comes and according to which law/rules of business it is charged from the poor despite Pakistan is not producing its power by just one source,Hydel,100% local materials,gas more than 40% locally produced,solar 100% local materials,wind mill,100% local materials excluding the benefits of byproducts enjoyed by the government by patrol.With reference to Ejaz Gohar trillions of payments were given illicitly to the loved even to the non producing companies.
Switch to solar as early as possible,It is the only way to get rid of such surcharges.
Do why didn’t you ask the questions why ?
Spineless journo
Do increas unit cost to pay circular debt but if this cost is in paisa per unit may be ok but if in rupees per unit, it will not be right decision. Also, think of other alternative, to increase efforts to reduce losses in term of theft.
کئ دھائیوں سے نوکریاں بند۔ لیکن ٹیکس بڑھائے جاو۔قربان جائیگی اس دانش پر۔
جن سرکاری ملازمین کو مفت بجلی دے رہے ہیں سب سے پہلے وہ بند کرو آرام کھانے والوں شرم کرو
Yay! ALL IMRANKHANS FAULT! But now anti-imrandoos will fix everything! Inshallah Hu Tabarak U Tallah 😋🙃. Yay! 🥳🙌🏻👏🏻
It is a government of swines
How can I refuse to pay ? I don’t trust them. I am very serious about leaving this country for my family’s stability.
Great going. Keep it up. Silence of the lambs.
You can never pay off circular debt it will always keep rising since the geniuses at pmln didn’t even think the whole design through when concluding contracts.. Three major sources for debt increase 1) inefficiency losses + theft 2) Banks exorbitant interest at 22% (2023 -2024 ) and now 11% govt uses to pay power companies 3) idle payments & delayed interest payment to IPPs…. For reference ottoman empire collapsed at 9-12 % interest rate…
Mohammad Anwar poor people should be bombed shel once for ever
Will we paying this when the national grid is gone, which will be soon, due to solar, there will be localized grids with backups, the eternal contracts they’ve signed well be moot, because if they try to push the issue everyone will go off grid
Switch to solar/reduce fuel imports, stop theft, reduce government expenditures. Utilise funds thus saved to payout circular debt.
This is great oppression. Govt officials, forces, MNAs, MPAs, bureaucrats, agencies, top officials of private & semi-govt institutes are enjoying free electricity, gas, petrol, telephone, traveling, housing, etc etc
And poor oppressed citizens who are going below poverty line day by day will again bear this burden. It seems that neither justice nor judiciary exist in Pakistan. What a joke?
Bro, who said them to maintain riba policy.
Great job. The Administration is working professionally and let this Awam sleep
Why is the common consumer being punished for bills which the DISCOs can’t recover? Why aren’t the DISCOs not cutting off the electric supply for non payment like they do for common citizens?
Who will give justice to the citizens against this unfair judgement?
The ones who are creating circular debt are going unpunished. It is as if govt is telling them “You don’t have to pay your bills, we will collect it through the common man”
People must know the details of this horrible debt, from where it comes and according to which law/rules of business it is charged from the poor despite Pakistan is not producing its power by just one source,Hydel,100% local materials,gas more than 40% locally produced,solar 100% local materials,wind mill,100% local materials excluding the benefits of byproducts enjoyed by the government by patrol.With reference to Gohar Ejaz trillions of payments were given illicitly to the loved even to the non producing companies.
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Instead of commenting here and there… Pakistanis why not you protest about this and several other mishaps the culprits are doing? Do this once and for all if you really love your motherland. Otherwise stop this hippocratic behavior… and pay whatever bill the govt is asking! 78 years are too much for the rona gana for any nation to stay on track. Blame game and nothing. Select the thugs to rule who fleece the public. That’s it.