Concern expressed as circular debt overwhelms LNG sector; Govt asked to streamline gas sector immediately

Islamabad, October 05, 2016 (PPI-OT): Islamabad Chamber of Small Traders on Wednesday expressed concern as the circular debt has engulfed LNG sector raising questions about it.

The LNG sector circular debt has been reported to be at Rs 12 billion which should be contained before it destroy the gas sector like it has played havoc with the electricity sector, said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt.

Talking to the newly elected president IWCCI Shamim Aftab, he said that country is already faced with circular debt of Rs 650 billion and now Rs 12 billion of gas debt has added to it creating more uncertainty.

Government is buying LNG since April 2015 while deal with Qatar Gas was signed in March 2016, he said, adding that such colossal losses in a short span are not acceptable.

The business leader said that government has assured IMF in 2008 and 2013 that circular debt will be culled but meaningful steps in this direction were not taken which is amazing.

A gas utility has reported profit after three years of losses therefore immediate steps should be taken to streamline gas sector, he demanded.

At the occasion, Shamim Aftab said that incumbent government inherited circular debt worth Rs 450 billion which is not at 650 billion that means the government has added Rs 200 billion to it due which has damaged economy.

She blamed the energy managers whose inefficiency continue to compromise the growth of the economy.

Ms Aftab said that Minister of Water and Power recently slapped ban on using imported fuel for power generation which was overthrown by higher authority in haste.

She demanded of the government to divulge details of deal with the Qatar Gas to bring rumours to an end.

For more information, contact:
Jahangir Akhtar
Secretary General
Islamabad Chamber of Small Traders and Small Industry
Office No, 9 Block E, Super Market, Islamabad
Cell: 0344-5111174