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Circular Debt Expected to Increase Till June 2021


Circular Debt Expected to Increase Till June 2021
The Additional Secretary Power Division (M/o Energy) informed the Committee about the sector-wise circular debt.
He presented the numbers of current circular debt up to December 2020 and expected increase till June 2021, which were Rs. 2,303 billion and Rs. 2,587 billion, respectively. The Committee expressed its grave concern about increasing circular debt and directed the Power Division to furnish a comprehensive draft for controlling the increase in circular debt before submission to Cabinet.
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The Committee members were of the view that an increase in circular debt will create significant problems for the economy of the country, especially towards the smooth functioning of the industries. The Committee noted the increased flow of circular debt at Rs. 55 billion monthly and declared an alarming situation for the country. ....

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