Debt service surgery

Our circular debt has reached alarming levels, severely disrupting government efforts to enhance economic growth and undertake essential development projects needed to meet the demands of a rapidly growing population. Successive governments, including the current one, have tried various strategies to tackle this persistent issue. However, progress remains largely invisible on the ground. According to recent news reports, the government is now preparing to introduce a new and supposedly innovative solution to this long-standing problem.

It plans to secure a massive loan of Rs617 billion from commercial banks – at a high interest rate – to address the circular debt. Rather than focusing on more sustainable and effective measures such as reducing line losses, curbing leakages and eliminating electricity theft, the government seems to have opted for the simpler route: borrowing funds and shifting the financial burden onto the already overburdened people. This approach may offer a temporary fix, but it places an unfair strain on the common citizen, who continues to grapple with the rising cost of living.

Engr Jan Nisar

Peshawar