Petroleum Division Denies Reports of Delay in Circular Debt Reduction Plan

The Ministry of Energy (Petroleum Division) on Sunday dispelled “negative perception” created by some media reports regarding delays in the circular debt reduction and tariff rationalization plans due to no consent given by the International Monetary Fund (IMF). “his is to dispel the negative perception being created regarding Circular Debt Reduction and Tariff Rationalization Plans. There have been productive deliberations with IMF after which additional information has been shared,” it said in a tweet on X. It added, “Further progress on these plans is expected in the coming weeks”. Last week the caretaker government virtually met with IMF to discuss tariff rationalization and circular debt reduction measures. Still pending, the proposed tariff rationalization would cut the industry’s tariff from 14 cents per unit to 8.5-11.75 cents per unit via a subsidy-neutral approach. Meanwhile, the energy sector’s circular debt stock of Rs. 1.27 trillion will be settled with funds from the Government of Pakistan.