C

circular debt

energy & resources.

In Pakistan’s power sector, the build-up of unpaid bills along the electricity supply chain. Distribution companies, short of revenue because of losses, low bill collection and delayed government subsidies, cannot fully pay the Central Power Purchasing Agency, which in turn delays payments to power producers, who then owe fuel suppliers. Limiting its growth is a recurring commitment in Pakistan’s IMF programmes.^1,2

Linked from 2 pages across CUPA.

Sources

1. 1 Circular Debt Impact on Power Sector Investment (supplementary document). Asian Development Bank. Official
2. 2 IMF urges Pakistan to cut power sector circular debt. Business Recorder. Press