Failure to introduce reforms in the power sector has caused the national exchequer to suffer a daily loss of one billion rupees owing to power theft and line losses, while the circular debt is constantly on the increase. According to reports, the government had allocated Rs 170 billion in the budget for power sector to provide relief to the poor and middle classes. However the Finance Ministry has made payment of Rs 225 billion in the first seven months of the year, which is Rs 55 billion more than the allocations for the whole year. The government had assured the IMF, World Bank, Asian Development Bank and other institutions to bring reforms in the power sector by improving the distribution system, reducing line losses and preventing theft of electricity. However sources said the government has so far failed to take the required steps and it is feared that the subsidy in power sector would reach Rs 365 billion by the end of the year.
