UBG leader Abdul Rauf Alam said that system weaknesses have translated into losses of Rs200 billion annually
KARACHI: United Business Group (UBG) said that circular debt has emerged as a major threat to the economy. UBG leader Abdul Rauf Alam said that system weaknesses have translated into losses of Rs200 billion annually while Rs40 billion was being paid as interest. Power sector distribution losses have climbed by 18.2% to Rs50 billion while defaulters including federal and provincial governments owe Rs628 billion to the power sector. He said that government and IMF have agreed to settle circular debt in three years, as it would be brought down to Rs218 billion in 2016-17 and Rs204 billion during the next year. Similarly, losses would be reduced by 1.5% while recoveries will be improved by five percent. Lauding the move, he underlined need to keep masses insulated from the impact.
Published in The Express Tribune, October 30th, 2015.
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