ISLAMABAD: The Ministry of Power reaffirmed on Sunday that the circular debt targets agreed upon with the International Monetary Fund (IMF) are well within limits, with the December 2024 goal firmly on track.
In a statement, the Power Division clarified that its performance aligns with quarterly targets for circular debt management. “The agreed target with the IMF ensures circular debt remains within specific thresholds during each quarter, and the power sector is operating comfortably within these limits,” the ministry said.
Addressing recent reports, a Power Division spokesperson emphasized that routine inter-ministerial communication had been mischaracterized. “Regular updates are shared with the Finance Division as part of the budget strategy, ensuring timely monitoring of releases and expenditures,” the spokesperson stated.
During the first quarter of FY2024-25 (July-September), the power sector received Rs128 billion in subsidies. For the second quarter, Rs31 billion has already been released, with over Rs50 billion in process. These figures underscore the ministry’s adherence to targets while improving loss reduction and recovery rates.
The spokesperson dismissed claims linking IMF compliance solely to subsidy releases as misleading, noting that circular debt management encompasses multiple factors.
By December 19, 2024, the circular debt flow stood at Rs70 billion, significantly below the agreed target of Rs461 billion. The Power Division expressed confidence in achieving the year-end goal, citing ongoing improvements and robust financial oversight.
