President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain on Wednesday expressed deep concern as the circular debt has crossed the mark of Rs800 billion.
The power sector circular debt has crossed the limit of Rs800 billion for the very first time in the history of country which has become a threat to the Gross Domestic Product (GDP) and it is hitting masses with power outages in the sizzling summer, he said.
Mian Zahid Hussain said that the circular debt has become a big threat to the image, credit rating and economic revival which merits urgent attention of the policymakers.
He said that circular debt is hitting industrial expansion, private investment in energy projects and pushing away much-needed investment.
The debt has reduced power generation by private sector leaving them unable to but fuel to run power plants of repay bank loans while it has eroded the ability of the Pakistan State Oil (PSO) to buy fuel resulting in problems, he added.
The business leader said that emerging situation can hit credit rating of Pakistan while is already under threat due to trade gap and current account deficit.
It which will change the perception of country among the international business community which is something we cannot afford at this juncture, he noted.
He said that circular debt results in loss of productivity in almost all the sectors, increase cost of production, reduce exports and tax collection and fan agitation.
Government should pay proper attention to the crumbling power sector which has become unmanageable, he said, adding that this sector has become dysfunctional because of the apathy of the successive governments.