President of Korangi Association of Trade and Industry (KATI) Masood Naqi, Senior Vice President Ghazanfar Ali Khan and Vice President of the association Umer Rehan have shown grave concern over pilling up circular debts of power sector, in a statement released by the association. “According to Media reports circular debt of power sector once again accumulated and reached to Rs 800 bn while IMF has also mentioned the situation in its annual report” statement said.

Masood Naqi said that according to available statistic due low oil prices and betterment of recovery financial performance of power sector has improved in previous years but once again circular debts have piled up. He said that concerns over power tariffs were not being addressed since along although required measure in this regard has been demanded repeatedly. President KATI noted that circular debt could cause harm to investments, industrialization and international financial ranking of country.

“Exports are dropped and cost of production is getting more expensive for industry, in this scenario lower energy prices for industry is a need of time. Prime minster Shahid Khaqan Abbasi should take immediate notice of this situation” demanded in the statement released by KATI