ICST asked govt to settle circular debt

Lahore : Islamabad Chamber of Small Traders on Tuesday asked the government to settle issue of circular debt to save poor masses from sizzling heat in summer.

Honest customers should not be penalised for the inefficiency and mismanagement in the power sector, it said.

Infamous circular debt has reached to Rs 329 billion which would have been Rs700 billion if the oil prices were stable, said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt.

He said that government had decided to pay Rs118 billion as subsidy to the power producers but so far the finance ministry has released Rs104 billion which has resulted in problems for the producers.

Shahid Rasheed Butt said that decision to keep power plants closed in not the solution to the issue of circular debt which amounts to punish masses without any justification.

He said that government is not ready to settle circular debt which power subsidy has been blocked which has prompted power producers to stop pay the bill of PSO that can result in disruption of oil supply chain in the country.

The business leader said that finance ministry has opined that honest consumers should be burdened with additional Rs80 billion to make for the losses of the power sector which is violation of the human rights.

He said that average line losses and thefts of the power distribution companies’ amounts to 19 percent while average bill collection stands at 89 percent.

Masses are not responsible for corruption, mismanagement and inefficiency in the power sector, he said.