PBIF terms rapid swell in circular debt potent peril to economy.

Karachi -- President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain has said the annual accumulation of over Rs450 billion in the infamous circular debt is a great threat to the economy.

Talking to the business community, he said on Friday that 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.

He 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 noted that over Rs300 billion are lost annually to mismanagement and inefficiency of concerned departments which can be controlled.

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