Karachi, May 18, 2012 (PPI-OT): Circular debt amount has surged to PkR 740.65 bn where the receivables from federal and provincial governments and other departments are at PkR 375.73 bn while the amount of payable is PkR 364.92 bn as on March 31, 2012, as reported in the local newspaper.
According to Alfalah Securities Limited, this includes an amount of PkR 68.88 bn due as receivables from the provinces, PkR 14.27 bn from federal government, PkR 60.4 bn from KESC; PkR 20 bn from FATA; PkR 14.56 bn from AJK government and others departments till March 2012. Likewise an amount of PkR 215.62 bn was payable to IPPs, PkR 70.32 bn to Wapda Hydel, PkR 31.299 bn to NTDC and RPPs, PkR 26.65 bn for oil and PkR 21 bn for gas.
The rising circular debt has remained a long standing problem for the policy makers and recently government has finalized an amount of PkR 82 bn to be raised as TFC to partially settle the growing circular debt. The power tariff has consistently been raised to cope this issue however, amid lack of administrative measure and rising international petroleum product prices, the circular debt has continued to plague the system and companies associated to the energy chain have suffered a great deal to persistent liquidity crunch arising due to circular debt.