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October 9, 2016

Small traders express concern over

National

October 9, 2016

Rs12 bn LNG circular debt

ISLAMABAD: Islamabad Chamber of Small Traders on Wednesday expressed concern as the circular debt has engulfed LNG sector raising questions about it.

The LNG sector circular debt has been reported to be at Rs12 billion which should be contained before it destroy the gas sector like it has played havoc with the electricity sector, said patron Islamabad Chamber of Small Traders Shahid Rasheed Butt.

Talking to the newly elected IWCCI President Shamim Aftab he said that country is already faced with circular debt of Rs650 billion and now Rs12 billion of gas debt has added to it creating more uncertainty.

The government is buying LNG since April 2015 while deal with Qatar Gas was signed in March 2016, he said adding that such colossal losses in a short span are not acceptable.

The business leader said that the government has assured IMF in 2008 and 2013 that circular debt will be culled but meaningful steps in this direction were not taken which is amazing. A gas utility has reported profit after three years of losses therefore immediate steps should be taken to streamline gas sector, he demanded. At the occasion, Shamim Aftab said that incumbent government inherited circular debt worth Rs450 billion which is now at 650 billion that means the government has added Rs200 billion to it which has damaged the economy. She blamed the energy managers whose inefficiency continues to compromise the growth of the economy.

Ms Aftab said that Minister of Water and Power recently slapped ban on using imported fuel for power generation which was overthrown by higher authority in haste.

She demanded of the government to divulge details of deal with the Qatar Gas to bring rumours to an end.