Islamabad
The Islamabad Chamber of Commerce and Industry (ICCI) has shown concern over the rising circular debt which has swelled to Rs280 billion and called upon the government to take urgent measures to address the serious issue as left unattended it would badly hit production activities and send the economy into further slump.
ICCI President Muzammil Hussain Sabri said that industry was already operating far below its actual capacity due to the persistent energy crisis and the rising circular debt would give rise to loadshedding and cause further reduction in production activities, leading to drop in exports and slowdown in economic activities.
He said the main cause behind the swelling of circular debt was poor recovery of electricity bills due to which receivables have risen to Rs576 billion. He said owing to poor recovery of electricity bills by DISCOs, the power system was sustaining huge annual loss of Rs100 billion and if this worsening situation was not arrested, the whole power system would paralyse. He said China has promised to invest more than $33 billion in Pakistan’s energy sector to generate more than 16000MW of electricity, but was afraid that without urgent and drastic overhauling, the present crumbling power infrastructure would not be able to sustain additional power load.
ICCI Senior Vice President Muhammad Shakeel Munir criticised the inefficient performance of power transmission and distribution system which was incurring huge losses of up to 20 to 25 percent on account of poor infrastructure, mismanagement and power pilferage.
ICCI Vice President Muhammad Ashfaq Chatha said that power loadshedding was again on the rise due to which business activities were suffering and people were facing great problems. He urged that the government should increase power generation on top priority basis by utilising alternative sources of energy, including hydro, solar and wind, to provide electricity at affordable rates.