Finance:Circular debt

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In Pakistan , circular debt is a public debt which is a cascade of unpaid government subsidies,[1] which results in accumulation of debt on distribution companies. When this happens, the distribution companies cannot pay independent power producers who in turn, are unable to pay fuel-providing companies thus creating the debt effect as seen in the country.[2] As of January 2021, the total circular debt of Pakistan was Template:PKR.[3]

References

  1. ↑ The Conundrum of Circular Debt. Energy Law & Policy eJournal. Social Science Research Network (SSRN). Accessed 28 January 2020.
  2. ↑ "Lights out: 'Circular debt' cripples Pakistan's power sector". https://www.aljazeera.com/ajimpact/lights-circular-debt-cripples-pakistans-power-sector-190524055240222.html. 
  3. ↑ "PTI govt adds Rs565 billion to circular debt". 15 January 2020. https://tribune.com.pk/story/2138035/2-pti-govt-adds-rs565-billion-circular-debt/. 



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