Islamabad: The government has successfully reduced the circular debt in the power sector by approximately eight hundred billion rupees within one year. This achievement was announced by Minister for Power, Sardar Awais Ahmad Khan Leghari, during a news conference in Islamabad on Friday.

According to Radio Pakistan, Minister Leghari detailed the reduction process, explaining that 242 billion rupees were saved by minimizing losses of power distribution companies, curbing electricity theft, improving recoveries, and ensuring better financial management. Additionally, 175 billion rupees were saved due to lower interest rates and improved macroeconomic conditions.

The Minister also highlighted that 363 billion rupees were saved by reviewing agreements with Independent Power Producers, which led to the waiver of late payment charges. This comprehensive approach resulted in a total circular debt reduction of 780 billion rupees.

Leghari noted that the circular debt has decreased from 2393 billion rupees last year to 1614 billion rupees this year. He emphasized that the remaining circular debt will be managed through special agreements with banks at lower interest rates and expressed confidence that the country would eliminate circular debt within the next six years.