Pakistan’s "Forum Express" reported on July 26 that the history of circulating debt in Pakistan’s power industry exceeded 800 billion rupees for the first time, and Pakistan’s Economic Coordination Committee agreed on Tuesday to postpone the payment of bank loans of 193 billion rupees for 2-3 years.
The report pointed out that the 800 billion rupee revolving debt includes the 425 billion rupee debt of Pakistan Power Company and other 375 billion rupees debt. Pakistan has promised to the International Monetary Fund that it will solve the debt problem of Pakistan Power Company through privatization of transmission and distribution companies, but so far it has failed to fulfill its promise.
The report commented that the government’s failure to solve the problem of debt due shows that the financial environment of the power industry is deteriorating. According to the documents of the Ministry of Water and Electricity, from July to December, 2016, the income of Pakistani power industry companies dropped significantly.