ISLAMABAD: Pakistan’s ministries of finance and energy Saturday presented recommendations to address the escalating circular debt crisis.
Local media reports indicate that the proposed solution involves a one-time payment of Rs4 trillion to Independent Power Producers (IPPs) to alleviate the burden on electricity consumers. This collective payment aims to ease the pressure on circular debt.
The payments could be spread over three to five years, potentially reducing electricity prices by Rs5 per unit.
The Finance Ministry is responsible for securing the necessary financing for this substantial payment to the IPPs.
Media reports say that the final decision will be made following consultations with the International Monetary Fund (IMF).
