ECC Approves Guarantee of Rs659 Billion for Circular Debt Financing

Islamabad: The Economic Coordination Committee has approved the issuance of Government of Pakistan guarantee over 659 billion rupees for circular debt financing of 1.225 trillion rupees. The approval was given during a meeting in Islamabad chaired by Finance Minister Muhammad Aurangzeb.

According to Radio Pakistan, the guarantee is intended for the settlement of Power Holding Limited’s debt and overdue payments to Independent Power Producers. The Committee also discussed and agreed on the framework regarding rationalization of tariffs and payment adjustments for nuclear power plants, government-owned power plants, OGDCL and SNGPL.

In another decision, the Committee endorsed a phased, data-driven approach to ensure stability in remittance inflows and to avoid any abrupt disruption that could adversely impact the economy.