| Submit your comments on this article |
| India-Pakistan |
| IMF asks Pakistan to reduce circular debt to zero in current fiscal year |
| 2025-09-28 |
| [GEO.TV] The International Monetary Fund (IMF) has asked Pakistain to reduce inflows into the considerable circular debt to zero from the current fiscal year, The News reported citing sources. The inefficiencies of the Power Distribution Companies (Discos) have continued to be a significant factor, resulting in losses of Rs265 billion in FY25 compared to Rs276 billion in FY24. Additionally, under recoveries were recorded at Rs132 billion in FY25, down from Rs315 billion in FY24. The IMF has been briefed about the baseline tariff, which will be implemented from January 1, 2026. The National Electric Power Regulatory Authority will review the eight Discos' interim tariff for 2025-26 as power firms requested Rs455 billion in revenues. ''If translates this into a per unit hike in tariff, it may hover around Rs2 to 4% increase in tariff,'' said the sources, and added that it would depend on the tariff determined by the Nepra. Keeping in view the losses incurred by the Power Distribution Companies (Discos), it is not possible to reduce the losses to zero, but the IMF insists upon the authorities to reduce the losses as much as possible, and the remaining losses to be financed through budgetary subsidies. |
| Posted by:Fred |