Leghari rules out new power surcharge to settle circular debt 

Federal Minister for Energy Awais Ahmad Khan Leghari on Sunday made it clear that no new surcharge would be imposed on power consumers to settle Rs2400 billion circular debt, reported 24NewsHD TV Channel. 

Responding to reports emerged on local media which claimed the government, during technical talks with IMF, proposed about Rs2.83 per unit additional financial surcharge on electricity for the next five years to get rid of the power division circular debt. 

The energy minister said that there was "a lot of room in debt servicing surcharge of Rs2.83" that the government is currently charging from power consumers. He said that the power division had improved its efficiency, adding that they were feeling secure and saving amounts due to the lower interest rates. He claimed the govt will get rid of the circular debt within the next five to six years. The minister categorically said, “the government will not add any burden on our consumers in any way.” 

He slammed the former PTI government for adding Rs1,580 billion in the circular debt during its tenure and claimed that the previous PDM and the current governments kept the circular debt almost flat. 

To a question, the minister said that the total circular debt currently stood at around Rs2400bn, adding that a certain part of the loan had to be paid to the government’s plants.