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Photo Source: Dawn

Pakistan Reader# 483, 20 December 2022

Prime Minister Shehbaz Sharif attempts to alleviate circular debt in the energy sector



The government tries to restrict the burden on consumers while also strengthening the industry.

Avishka Ashok

On 19 December, Prime Minister Shehbaz Sharif chaired a meeting on reducing circular debt and preventing an additional financial burden on energy consumers. PM Sharif further called for consolidating the system of collecting electricity and gas bills while ensuring the prevention of energy theft in the country. The agenda of the meeting was to devise a strategy to overcome the circular debt in the power and gas sectors of Pakistan. PM Sharif urged the gas distributors to rectify their bill recovery systems. Meanwhile, the energy-saving plan will be reviewed and presented to the federal cabinet.  
 
The government has been encouraged to undertake measures that will save and conserve energy. In the furtherance of this aim, the market timings have been restricted until 2000 hours. The media sources within the country revealed that the circular debt increased by 185 billion in the last year, from PKR 2.253 trillion in September 2021 to PKR 2.437 trillion in 2022. (“PM wants no more burden on power, gas users,” The News International, 20 December 2022; “PM Shehbaz wants measures to reduce circular debt in energy sector,” Dawn, 20 December 2022)
 

 
 

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