Circular debt shoots up by 'Rs500b'.

ISLAMABAD -- The parliamentary Public Accounts Committee (PAC) was informed on Wednesday that circular debt in the gas sector increased during the current year but efforts were afoot to bring it down.

The committee which met with its chairman Noor Alam Khan in the chair, also sought details of perks provided to the top government functionaries including the prime minister, ministers as well as the judges of the superior judiciary.

PAC received a briefing from the petroleum secretary. He told the committee that the circular debt of the petroleum sector was Rs1,200 billion in the last year, which had now risen to Rs1,700 billion.

'A plan has been prepared to get rid of the circular debt of the petroleum sector,' the secretary said. 'The Ministry of Finance and the Ministry of Energy are working on it,' he added.

It has been decided to swap the assets of the institutions, he said, adding that Rs300 to 400 billion dues would be cleared in lieu of power plants. He also said that an increase in the gas tariff had reduced the debt by Rs250 billion.

During the meeting, the chair asked the secretary why was the ban on new gas connection had not been lifted despite PAC's order. The secretary replied that the summary in this regard was put up before the federal cabinet but it was rejected.

Noor Alam Khan ordered that PAC's recommendations would be sent to the Prime Minister's Office for lifting of the ban on gas connections. Khan also directed the gas utilities not to collect the increased meter rent from the gas consumers.

The chair expressed satisfaction with that recent reduction in the prices of petrol and diesel and stressed the need...