Pakistan approves circular debt management plan, extra surcharge on electricity

KARACHI, Pakistan : Pakistan’s Economic Co-ordination Committee on Friday approved a plan it is negotiating with the International Monetary Fund to slash its circular debt, a form of public debt that builds up in the power sector due to subsidies and unpaid bills.

The committee, led by Finance Minister Ishaq Dar, also approved an additional surcharge of Rs 1 per unit of electricity for FY 2023-24 to recover an estimated 76 billion Pakistani rupees ($282.81 million) in power sector liabilities.

Pakistan and the IMF are to resume talks online next week they said on Friday, after ten days of face-to-face discussions in Islamabad on how to keep the country afloat ended without a deal.

($1 = 268.7300 Pakistani rupees)