Dar pays back Rs326 billion, hopeful to meet August deadline for ending circular debt

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Federal Finance Minister Ishaq Dar on Friday announced that the first installment of Rs 326 billion out of the total of Rs503 billion of circular debts would be paid to the Independent Power Producers (IPPs) today (Friday).

The finance minister reiterated his pledge to resolve the circular debt problem within sixty days in his budget speech.

Addressing the National Assembly here, Dar said that the government would pay Rs326 billion to the IPPs and banks in cash and bonds – Rs194 billion in cash and Rs128 billion in bonds. He said that after payment of Rs326 billion, the balance of circular debt would be reduced to Rs177 billion for which the payment deadline as promised by him was August 10 and he was hopeful that remaining amount would also be paid by middle of July.

The finance minister also announced a Ramazan package of Rs2 billion, which would be utilized for providing items of food and beverages at subsidised rates in the holy month.