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Standing Committee on Energy Takes Notice of Electricity Infrastructure Theft

Standing Committee on Energy Takes Notice of Electricity Infrastructure Theft
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National Assembly of Pakistan

Circular debt: Govt wants powers to embed more surcharges into tariff

July 14, 2021 ISLAMABAD: In line with the understanding reached with the IMF, the government is trying to have powers to impose more surcharges in the consumers tariff not only to fund future projects of paramount importance but also meet financial obligations of the government in the power sector. The consumers will also pay the principal amount of loans apart from debt servicing in the shape of surcharges with an aim to settle the circular debt that has hiked to Rs2.4 trillion. And more importantly the surcharges to be levied by the government to this effect will not be made public in the electricity bills, rather it will be made part of expenditures to be charged by DISCOs as cost of service or part of Distribution Margin.

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