Poor financial or economic management has led to increasing the country's circular debt. This astronomical rise in debt has been attributed to highly mismanaged power sector after top positions of public sector's power companies have been occupied by Power Ministry's officials. The circular debt piled up again after the government cleared Rs 480 billion soon after coming to power in June 2013 due to less recovery and high losses. According to a Business Recorder report, the current stock of Rs 525 billion is in addition to Rs 400 billion loans availed by the power Distribution Companies (Discos) and parked in the books of Power Holding Company Limited (PHPL).

These figures constitute a rebuttal to incumbent government's claims in relation to fiscal prudence and discipline in particular. It has already taken the stock of country's external debt to an unprecedented high. In order to meet its budgetary requirements, the government has planned record borrowings in this quarter of the fiscal year 2017-18. The so-called economic czar, Ishaq Dar, is said to be unwell; country's economy is not well either. There seems to be no light at the end of tunnel at this point in time.

Copyright Business Recorder, 2018