Islamabad, June 19 -- Pakistan's federal cabinet has approved a 1.275 trillion PKR (approximately USD 4.6 billion) plan to tackle circular debt in the power sector, aiming to restore financial stability and investor confidence, according to the Prime Minister's Office, reports Samaa TV.
Describing it as a "historic step", Prime Minister Shehbaz Sharif said the plan would bring sustainable reforms, reduce fiscal burden, and strengthen the country's energy infrastructure without adding pressure on the national budget.
Under this plan, over PKR 683 billion (USD 2.4 billion) will be refinanced by the Power Holding Company, and outstanding payments to Independent Power Producers (IPPs) will also be settled. The PM termed it a "major mile...