- “A lot of space in the debt service surcharge of RS2.83”.
- The minister says he will not add any burden to consumers in any way.
- Government in conversations with banks to borrow RS1200BN, he says.
Federal Energy Minister Awais Ahmad Khan Leghari clarified on Sunday that a new surcharge would not be imposed on energy consumers to liquidate the circular debt of RS2400 billion.
His comments arrived a day after reports arose in certain sections of the local media, claiming that the Government, during the technical conversations with the International Monetary Fund (IMF), proposed on approximately RS2.83 per unit of additional financial surcharge on electricity over the next five years to get rid of the circular debt of the Energy Division.
Talk about Geographical news Naya Pakistan program, the Minister of Energy, said that “there was a lot of space in the debt service surcharge from RS2.83” that the government is currently charging energy consumers.
He said the energy division had improved its efficiency, and added that they were “feeling safe” and saving amounts due to lower interest rates. “We will get rid of the circular debt within the next five to six years.”
“We have taken the IMF on board [about the matter]. They are our development partners. ”
The minister categorically announced: “We will not add any burden to our consumers in any way.”
Hatalized the former PTI government for adding RS1,580 billion in the circular debt during his mandate and said that the previous PDM and the current governments maintained the circular debt “almost flat”.
In response to a question, the minister said that the total circular debt currently was around RS2400BN, and added that a certain part of the loan had to pay to government plants.
“We would not borrow banks for such loans,” he said, adding that the Government saved RS460 billion after the discussion with the IPP under revised agreements and provided relief to people.
The minister said they were negotiating with commercial banks to borrow RS1200bn to resolve the remaining circular debt.
When asked if the IMF rejected a proposal on reducing taxes on electricity bills, the minister described his meeting with the “very good” global lendist delegation, saying that his development partners did not reject any proposal.
For another consultation, the minister said the government would not make amendments to existing agreements related to the net solar measurement.
