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PEW says circular debt crosses Rs600 bln due to lethargy of officials
INP
ISLAMABAD - Pakistan Economy Watch President Dr Murtaza Mughal on Friday said that 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 Islamabad Chamber of Small Traders Patron Shahid Rasheed Butt and members of business community. Dr 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 Pakistan, punish masses and hurt limping industry which should be probed. He said that Pakistan Muslim League-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.
Courtesy www.dailytimes.com.pk