Pakistan has informed the International Monetary Fund that it expects the loss of electricity sector losses. In this financial year, 535 billion, an increase of 35 % over the previous year, as the ineffective and poor bill recovery continues to increase the country’s chronic circular debt.
According to the Express Tribune, the Power Division informed the IMF that the circular loan flow, or the unpaid responsibilities collected in connection with the power supply, RS. This year, 505 billion, more than rupees borrower demanded 200 billion roof.
Expected losses are driven by two key factors: in power companies, who are expected to raise RS. A total of electricity bills, and a total of 276 billion, which can contribute to another rupee. 260 billion, twice the figures from the previous year.
Officials attributed the rapid rise in under -regulation to the effects of floods and other external shocks.
Despite efforts by both citizens and military leaders to reform this sector, Pakistan, including dialogue with free power generators, has struggled to address the main causes of its power sector problems.
The government has relied heavily on budget subsidies and new debt to overcome circular debt, which RS. 1.6 trillion in June, RS. 2.42 trillion a year ago, to a large extent because of the steps.
The IMF pressured Pakistani authorities why preliminary reforms in July and August, when losing in defective and weak recovery, dropped 37 % to Rs 500 year. 153 billion, could not last for the rest of the financial year. Officials referred to the limited room for further benefits, especially after the flood after Punjab, and said that the structural problems of the sector were not solved.