Pakistan economic body approves $2.3 billion for circular debt financing

KARACHI: The Economic Coordination Committee (ECC) on Friday approved the issuance of a government guarantee of over Rs659 billion ($2.3 billion) for circular debt financing of Rs1.225 trillion (4.3 billion), the finance ministry said. The decision was made at an ECC meeting, presided over by Finance Minister Muhammad Aurangzeb, to review proposals submitted by various ministries and departments, including a Power Division summary seeking the guarantee. Circular debt is an ever-growing chain of unpaid bills within Pakistan’s power and gas sector where one entity’s arrears cascade to the next.

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