New Wine in Old Bottle: IPPs Get Rs 683B under Circular Debt Elimination Plan?
By Salman Khan
Islamabad: The new wine is in a new bottle now to address the chronic issue of circular debt in the power sector. The Independent Power Producers (IPPs) are going to get another financing of multibillion rupees under a plan to resolve the circular debt issue.
The government has already pumped multibillion rupees into the power holding company, and the same plan goes again.
The cabinet has approved a financial scheme to eliminate the Rs1,275 billion circular debt over the next six years, without putting new fiscal constraints on the national budget.
Under the scheme, the government will refinance Power Holding Company to the tune of Rs683 billion and will also pay the arrears of Independent Power Producers (IPPs).
Prime Minister Shahbaz Sharif chaired a cabinet meeting on Wednesday.Chashma-5 Nuclear Power Plant Progressing Rapidly
The Federal Cabinet has approved Pakistan’s largest financial scheme to the elimination of circular debt in the power sector.
The government said that it had taken a historic step towards restoring financial stability in the power sector.
The scheme is aimed at eliminating the Rs1,275 billion circular debt over the next six years.
Under the scheme, the government will refinance Power Holding Company to the tune of Rs683 billion to pay the arrears of Independent Power Producers (IPPs).
The government also said that this decision has reflected the Government of Pakistan’s commitment to implementing sustainable institutional reforms.
It will also be reducing the fiscal burden and restoring investor confidence in the energy sector and a major achievement for Pakistan’s economy and power sector, which will help lead the country towards a sustainable future.
Prime Minister has praises Army Chief Field Marshal Syed Asim Munir’s address to Pakistanis living in the US during his visit.
Federal Cabinet has taken historic step towards restoring financial stability in the power sector by eliminating circular debt of the power sector.
Taking a historic step towards restoring financial stability in the power sector, cabinet has approved Pakistan’s largest financial scheme.
The government has termed this decision as a major success for Pakistan’s economy and power sector to help lead the country towards a stable future.
The Federal Cabinet paid tribute to Federal Finance Minister Muhammad Aurangzeb and his team for the people-friendly federal budget for the next fiscal year.
The federal cabinet, on the recommendation of the Ministry of Human Rights, has also approved the appointment of Kamaluddin Tipu as the Chairperson of the Commission for the Protection of Journalists and Media Professionals.
The Federal Cabinet has approved to grant exemption under Section 21 of the Pakistan Public Procurement Regulatory Authority Ordinance 2002 to the National Power Parks Management Company Limited to procure various services in the context of the acquisition of the Roush Power Plant.
The Federal Cabinet has ratified the decisions taken in the meeting of the Cabinet Committee on Legislative Cases held on May 21, 2025.
