Omar rejects news item about circular debt

ISLAMABAD, Dec 8 (APP):Minister for Energy Omar Ayub Khan Sunday rejected a news item appearing in a section of media about increase in circular debt.

The minister, in a tweet said, the gross circular debt buildup for first quarter of the fiscal year 2019-20 was Rs 77 billion.

“This number was before subsidy payment (TDS) in the budget,” he said, out of which, Rs 39 billion had been paid from the budget leaving only Rs 38 billion as net addition to circular debt that translated into about Rs 12 billion a month.

He said the news item only quoted the month of August prior to subsidy, adding “The TDS is the subsidy to ensure that the same tariffs are applied across all electric DISCOs and to provide deeply discounted electricity to the poorest consumers using 300 units and below as well as Agricultural Tube Well subsidy.”

He said it had been admitted in the news items that Asian Development Bank had acknowledged drastic reduction in the circular debt, and “we are delighted that ADB has verified the government claims.”