The government has successfully reduced circular debt in the power sector by around eight hundred billion rupees within one year.

This was stated by Minister for Power, Sardar Awais Ahmad Khan Leghari, while addressing a news conference in Islamabad on Friday.

Presenting detail of the reduction in circular debt, he said that 242 billion rupees were cut by lowering losses of power distribution companies, curbing electricity theft, improving recoveries, and ensuring better financial management. He added that 175 billion rupees were saved due to lower interest rates and improved macroeconomic conditions.

The Minister further said that 363 billion rupees were saved by reviewing agreements with Independent Power Producers, which led to the waiver of late payment charges. As a result, the total reduction in circular debt reached 780 billion rupees.

He said now the circular debt has come down from 2393 billion rupees last year to 1614 billion rupees this year.

Sardar Awais Ahmad Khan Leghari said the remaining circular debt will be managed through special agreements with banks at lower interest rates. He expressed confidence that the country would eliminate circular debt within the next six years.