Pak circular debt reaches Rs. 740 billion - May 29, 2012
 

STAFF REPORT KHI: The circular debt has jumped up to the level of Rs 740.65 billion where the receivables from federal and provincial governments and other departments are at Rs 375.73 billion while the amount of payable is Rs 364.92 billion as on March 31, 2012.
According to the statistics available, this includes an amount of Rs 68.88 billion due as receivables from the provinces, Rs 14.27 billion from the federal government, Rs 60.4 bn from KESC; Rs 20 billion from FATA; Rs 14.56 billion from AJK government and others departments till March 2012. Likewise an amount of Rs 215.62 billion was payable to IPPs, Rs 70.32 billion to Wapda Hydel, Rs 31.299 billion to NTDC and RPPs, Rs 26.65 billion for oil and Rs 21 billion for gas.
The rising circular debt has remained a long standing problem for the policy makers and recently government has finalized an amount of Rs 82 billion to be raised as TFC to partially settle the growing circular debt.
The power tariff has consistently been raised to cope this issue, however, amid lack of administrative measures and rising international petroleum product prices, the circular debt has continued to plague the system.

Source: [url]http://www.technologytimes.pk/2012/05/29/pak-circular-debt-reaches-rs-740b/[/url]