October 22, 2018 (MLN): Government has deferred its decision on electricity price hike yet again, in today’s Economic Coordination Comiittee (ECC) meeting. The meeting was concluded on the note that until the system of receivables is not improved, government will not increase the prices.

A decision will now be taken in the next ECC meeting which will be held on Wednesday, 24^th October. This meeting will discuss electricity receivables issue and ways to improve it amongst other important matters.

The power tariff hike had become necessary under current circumstances owing to an addition of Rs35 billion to the circular debt, bringing the total to Rs1.2 trillion. Due to this increase in circular debt, banks had stopped lending to the power sector, further enhancing its liquidity crisis issues.

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