Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Monday said circular debt (CD) is a great threat to the country’s economy.
The government should accept the challenge of eliminating CD to ensure economic growth at a rapid pace, he said.
Mian Zahid Hussain said that the unsatisfactory volume of exports and CD are among the threats to the Pakistani economy.
Talking to the business community, the veteran business leader said that every government made announcements to eliminate the CD but it increased its volume.
In the last few months, the electricity tariff has been hiked drastically but the CD has not decreased but has increased, and now its volume has reached 2252750 million rupees which is unsustainable.
He said that reasons for increasing CD include weak power transmission and distribution systems, corruption, theft, and line losses.
One of the causes of CD is the generation of electricity with imported fuels and ignoring cheaper sources for power generation, he added.
The business leader said that fuel import bill cannot be reduced and pollution cannot be tackled unless solar power is patronized.
Solar power is necessary to reduce dependence on imported fuel, provide relief to the masses and propel the economy.
Mian Zahid Hussain further said that the bureaucracy does not like to do anything itself nor allows the private sector to do anything.
Some bureaucrats are after the solar sector and they are discouraging it and all possible efforts are being made to harm it, but no one in power is ready to take notice.
He said that until the private sector is allowed to participate fully in the electricity sector, the recovery of bills is improved and defaulters are not dealt with according to the law, this important sector will continue to suffer.
A revived power sector can attract investment, and help reduce poverty play a positive role in economic development.