How to control circular debt Opinion April 30, 2021 The writer is a former member of the Energy Planning Commission and author of ‘Pakistan’s Energy Issues: Success and Challenges’. It was recently reported that the PM has asked the Ministry of Finance and the Power Division to reduce circular debt without increasing the tariff, and handle the capacity charges. One is relieved to hear of the PM’s interest in the issue. Indeed, the best option is to somehow reduce the capacity charge which has been increasing due to slow demand and higher capacity cost. Increase in tariffs would have political consequences among rising inflation. Even the economy and exports may be hurt due to an increase in electrical tariff.