Call to tackle gas sector circular debt



Islamabad(PR):The Pakistan Economy Watch (PEW) on Sunday asked the government to tackle gas sector circular debt before it put a question mark on the success of the energy policy. He expressed concern over the gas sector circular debt that has touched the mark of Rs 12 billion.
The debt should be contained before it damage the gas sector like it has played havoc with the electricity sector, said Dr. Murtaza Mughal, President PEW.
He said that country is already faced with circular debt of Rs 650 billion and now Rs 12 billion of gas debt has added to it creating more uncertainty.
Government is buying LNG since April 2015 and such losses in a short span are not acceptable, he said, adding that the government has assured IMF that circular debt will be controlled but it couldn’t.
He said that a gas utility has reported profit after three years of losses therefore immediate steps should be taken to streamline gas sector.
Dr. Murtaza Mughal said that government inherited circular debt worth Rs 450 billion which is not at 650 billion that means the government has added Rs 200 billion to it due which has damaged economy.
He the energy managers whose inefficiency continue to compromise the growth of the economy. Minister of Water and Power recently slapped ban on using imported fuel for power generation which was overthrown by higher authority.
He demanded of the government to divulge details of deal with the Qatar Gas to bring rumours to an end.