No short-term solution to fix circular debt issue, says caretaker minister

KARACHI: Minister for Energy, Power and Petroleum Muhammad Ali has said there are no short-term solutions to the issue of the circular debt.

Speaking at the 20th Annual Excellence Awards organised by the CFA Society Pakistan on Friday evening, Mr Ali said a roadmap to address the issues in the energy sector, including the circular debt, will be developed by November 2023.

“The resolution of the circular debt in the gas sector is expected sooner,” he said, adding that the energy sector’s challenges have the spillover effect on other segments of the economy.

The caretaker minister stated that markets will play a key future role in energy pricing, adding that distribution companies are going to be privatised, according to a press release.

Owing to a crackdown against power theft and defaults, about Rs17 billion has been recovered by the caretaker administration, he said.

Speaking on the occasion, State Bank of Pakistan Deputy Governor Dr Inayat Husain said he expected lower inflation and a lower current account deficit in the coming months.