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Petroleum Division circular debt mounts to whopping Rs2.897tr

Our Correspondent
Thursday, Sep 05, 2024

ISLAMABAD: The National Assembly was informed on Wednesday that the circular debt of Petroleum Division was Rs2,897 billion, which includes interest of Rs814 billion.

In a written reply to a question of Rai Hassan Nawaz Khan, Minister for Energy (Petroleum Division) Musadik Malik told the National Assembly that the petroleum sector’s circular debt was Rs2,897 billion which includes interest of Rs814 billion.

He said the major part of circular debt was related to the gas sector which includes tariff differential due to non-increase of consumer gas prices during the fiscal year 2013 to 2023, diversion of RLNG from FY2019 to FY2023, taxation claims, recoveries pending in courts, etc. He said to stop the flow of circular debt in the gas sector, mainly tariff differential and diversion of RLNG to domestic sector, the government has revised the gas prices. The minister was quoted as saying that to handle the circular debt before fiscal year 2024, the government was working on various options for cash/non-cash settlements.