Annual growth of Rs450 billion in circular debt a threat to economy.

KARACHI -- President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Friday said the annual accumulation of over Rs450 billion in the infamous circular debt is a great threat to the economy.

The government should take serious steps to initiate meaningful reforms in the power sector to resolve the issue which will trigger economic growth, he said.

Talking to the business community, the veteran business leader said that circular debt can be resolved through abolishing corruption and full recovery of bills from consumers which is not happening.

The former minister noted that the circular debt build-up was Rs465 billion for the last year; it was Rs450 billion in 2013 which has now jumped to Rs1.62 trillion.

He...