Circular Debt: Sort out the persisting issue, ICCI says
Due to the persistent energy crisis the industry is already operating far below capacity, says ICCI president
ISLAMABAD:
Islamabad Chamber of Commerce and Industry (ICCI) has shown concern over the increasing circular debt that has risen to Rs280 billion, and called upon the government to take urgent measures to address the issue. ICCI President Muzammil Hussain Sabri said that due to the persistent energy crisis the industry is already operating far below capacity and the rising circular debt would cause a reduction in production activities. “If this issue is left unattended, it would badly hit production and send the economy into further slump,” he said. He said the main cause of swelling circular debt was poor recovery of electricity bills due to which receivables had risen to Rs.576 billion. As a result, power system was sustaining huge annual loss of Rs100 billion.
Published in The Express Tribune, January 10th, 2015.
Islamabad Chamber of Commerce and Industry (ICCI) has shown concern over the increasing circular debt that has risen to Rs280 billion, and called upon the government to take urgent measures to address the issue. ICCI President Muzammil Hussain Sabri said that due to the persistent energy crisis the industry is already operating far below capacity and the rising circular debt would cause a reduction in production activities. “If this issue is left unattended, it would badly hit production and send the economy into further slump,” he said. He said the main cause of swelling circular debt was poor recovery of electricity bills due to which receivables had risen to Rs.576 billion. As a result, power system was sustaining huge annual loss of Rs100 billion.
Published in The Express Tribune, January 10th, 2015.