ISLAMABAD (Daily Point) — In compliance with the International Monetary Fund’s (IMF) stipulations, Pakistan has disbursed Rs140 billion to government-operated power plants to tackle the circular debt issue in the energy sector, according to an official document from the finance ministry on Friday.

According to the document, Pakistan is required to reduce the circular debt in the energy sector by Rs400 billion during the fiscal year 2023-24 as per the conditions set by the IMF.

The finance ministry’s document revealed that Rs57 billion has been allocated to Karachi Electric to address the circular debt problem. In the upcoming fiscal year 2023-24, it is anticipated that Pakistan will disburse Rs260 billion to the power sector and Rs65 billion to gas companies, sources reported.

Currently enrolled in the IMF’s Stand-By Arrangement (SBA) program, Pakistan is diligently working to fulfill the prerequisites for the next staff-level agreement.

In a prior development, the Pakistani government assured the International Monetary Fund (IMF) of maintaining the circular debt in the power sector at Rs2.31 trillion. The Power Division presented these details before the Senate Standing Committee for Power, with the caretaker federal government committing to uphold the circular debt of the power sector.