Pakistan, July 22 -- The government has found a new way to tackle the growing Rs 2800 billion circular debt in the gas sector. Like the power sector, the plan will shift most of the burden to gas and fuel consumers. A special petroleum levy is under consideration to collect funds for repaying loans. This levy could range from Rs 3 to Rs 10 per liter. The government plans to borrow Rs 2000 billion from commercial banks and repay it using this levy.

If Rs 1 per liter is charged, the government could collect Rs 18 billion each year. With Rs 10 per liter, it could collect up to Rs 180 billion annually. However, to repay the entire loan, the government needs to raise Rs 250 billion every year. This collection plan will continue for the next s...