Hammad Azhar says circular debt in June 2018 was Rs0.7 trillion which swelled to Rs1.1tn by May 2021
ISLAMABAD: Federal Minister for Energy Hammad Azhar on Thursday said that the petroleum sector’s circular debt has increased by almost 50% during the three years of the PTI government.
Azhar made the statement while informing the National Assembly about petroleum sector debts during the question and answer session.
“The circular debt in June 2018 was Rs0.7 trillion which swelled to Rs1.1tn by May 2021,” said Azhar.
Apprising the assembly about the reason behind the surge in the debts, he said that the ministry has been told that a delay in recoveries in the gas sector are the main reason for the increase in debt.
“Similarly, the poor financial condition of government institutions is another reason for the increase in debts,” said Azhar.
The minister further stated that a working group of petroleum companies has been formed to resolve the matter of circular debt in the petroleum sector.