Islamabad:
The International Monetary Fund (IMF) has asked Pakistan to present a comprehensive plan to eliminate the growing circular debt.
According to the sources, the circular debt of the gas sector has shot at RS2,800 billion, causing severe financial tension in SUI gas companies and other state oil and gas entities. In response, the government is working on a strategy to address the crisis, which includes ensuring a loan of RS2,000 billion banks in favorable terms.
According to reports, negotiations are underway with banks to reduce or give up interest rates. The Government is also considering imposing an rs3 oil tax for RS10 per liter and an additional surcharge on gas invoices to raise funds for debt reimbursement. Through the proposed oil tax alone, it hopes to generate around 180 billion rupees.
It is expected that the reimbursement of bank loans covers five years. Meanwhile, the Government will also need to reduce the operational losses of gas companies to effectively address the problem of circular debt.
