Hamad Azhar fears huge increase in circular debt 

By: News Desk      Published: 05:29 PM, 15 Oct, 2021
Hamad Azhar fears huge increase in circular debt 

Federal Minister for Energy Hamad Azhar has said that the rent of power plants are increasing with every passing day, reported 24News HD TV on Friday.   

Addressing a press conference in Islamabad, the minister said that circular debt was due to capacity payment of power plants, circular debts will go from Rs2500 billion to Rs3000 billion by 2030. 

Six thousand to ten thousand megawatts of electricity will be added and we will have to suffer the consequences of installing expensive electricity plants, he added. 

Hamad Azhar said that all these projects had been installed during the rule of Pakistan Muslim League N (PML-N) and Pakistan Peoples Party (PPP).

Federal Minister said that NEPRA had proposed to increase the tariff and the electricity tariff is being increased by Rs1.39. The Pakistan Tehreek-e-Insaf (PTI) has not signed any power deal yet, he added. 

Hamad said that there were Rs185 billion capacity payments which have now increased to 700, 800 billion. The PTI government has approved a long-term agreement with the Council of Common Interest (CCI).

We have introduced an industrial package to increase power consumption, we have introduced seasonal tariff for winter this year, he added. 

Hamad Azhar said that it will not be an additional burden on the industry, the rate of increase in circular debt has reached 150 billion, the new tariff will not be applicable to domestic consumers using 200 units.

We have to raise tariffs because of expensive deals in the past, " he said.