Federal Minister for Petroleum Ali Pervaiz Malik has expressed concern over a possible surge in the country’s circular debt, warning that energy companies are violating agreements to purchase LNG cargoes.
Expressing his thoughts, the minister said: “The IMF has set a condition to eliminate circular debt,” Malik said. “Yet, some power companies are breaching agreements by refusing to buy LNG cargoes after initially committing to six vessels and later backing out after agreeing to only four.”
The minister stressed that sustainable solutions are being developed to address challenges in the energy sector. “We will first break the cycle of circular debt and are actively working on multiple options for its complete elimination,” he added.
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