Circular debt crosses Rs600 bln due to lethargy of officials: Pakistan Economy Watch

Islamabad, January 16, 2015 (PPI-OT): President of the Pakistan Economy Watch Dr. Murtaza Mughal on Friday said wrong decisions of the bureaucracy are behind the petrol crisis which has made life difficult for millions and hit economy.

Those who failed to take corrective measures in time should be asked to give reasons for the disaster, he said.

The officials concerned continued to ignore plight of PSO despite record receivables of 235 billion and power sector circular debt hitting a record mark of Rs 600 billion, he said while talking to Patron of the Chamber of Small Traders Islamabad Shahid Rasheed Butt and members of business community.

Dr. Murtaza Mughal said that PSO started defaulting on its obligations in November 2014 and the institution faced refusal by the banks for any loans.

In the same month faced fine of Rs 250 million by banks, Rs 180 million demurrage charges and damages claim to the tune of Rs 65 million by foreign oil suppliers but it was not enough to get attention of the policymakers.

Unfortunately, the indifferent attitude of authorities helped circular debt engulf whole country, punish masses and hurt limping industry which should be probed.

He said that PNL-N led government allocated Rs 500 billion to tame circular debt after coming to power and the finance minister in the first budget speech termed it a great victory claiming to bury the problem forever. The promise of the finance minister was not kept, said Dr. Mughal.

For more information, contact:
Dr. Murtaza Mughal
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671

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