Govt to immediately clear Rs50 billion in circular debt

ISLAMABAD - The Pakistan Tehreek-e-Insaf's (PTI) federal government decided on Thursday to immediately pay back Rs50 billion in circular debt.

The decision has been taken after independent power producers (IPP) threatened that they would suspend power generation, local media reported.

The phase-wise payment would start from Monday after the Ashura holidays and the weekend.

On Monday, Rs34 billion will be paid to the Ministry of Power and the remaining Rs16 billion will be given at the end of next month.

The Rs50 billion have been taken as loan from eight banks.

Earlier, it emerged on media that previous PML-N govt passed on a gigantic circular debt of Rs1.148 trillion to the new government of Pakistan Tehreek-e-Insaf (PTI), which faces a bumpy road ahead.