Minister for Finance Senator Mohammad Ishaq Dar Wednesday said the government of Pakistan Muslim League (Nawaz) had saved 14 percent interest amount being paid on delay in the payment of Rs 500 billion circular debt to Independent Power Producers (IPPs) and others left by the previous government.
Giving a policy statement to clarify the government stance on payment of circular debt, he said, the government has saved Rs 67.2 billion per annum interest to be paid on the non payment of the (accumulated) circular debt to the IPPs and others. He said the payment of the circular debt helped adding over 1700 MW of electricity in the national grid. The payment of circular debt has also ensured 7 percent growth in industrial production from June to July 2013 due to end of load shedding.
Expressing his annoyance over the propaganda of the opposition, he said, the amount of circular debt is being twisted.
The details of Rs 480 billion has been placed on the website of the Ministry of Finance.
He said a total of Rs 503 billion circular debt was due including Rs 23 billion liquidity damages.
Giving the details of circular debt payment, he said the government has only paid Rs 59 billion cash to IPPs and others.
An amount of Rs 128 billion has been arranged from Pakistan Investment Bonds, Rs 135 billion has been arranged by imposing a cut on the expenditures of the ministries.
An amount of Rs 20 billion, he said has been gathered from dividends of Public Sector Organisations and Rs 138 billion has been arranged from recoveries of the defaulting institutions.
Regarding agreements inked with the International Monitory Fund (IMF), he said, the agreements have been placed on the website of the ministry.
He said nine IPPs had filed cases in Supreme Court against the non payment of Rs 503 billion while load shedding up to 17 hours continued in the country due to the non-payment of the circular debt by the previous government.
The Minister said further detail of the circular debt can be checked from the Ministry of Water and Power as the government believes in transparency and wanted to share information with masses.
He informed the house that GDP growth has increased from 2.9 percent to about 5 percent of the first quarter of the current fiscal year. He regretted that the PPP government had failed to achieve target of tax.
He said budget deficit has also been reduced to 2.2 percent from 2.9 percent. Stock Exchange has registered 27 percent increase due to steps taken by the government.
He added that secret funds of 32 departments were abolished by the government soon after assuming charge. The government has also imposed ban on the officials to become members of boards of more than one institution.
The minister informed the house that former finance minister without following the set procedure increased the salary of Deputy Governor State Bank from 0.75 million to 1.5 million.
He said governor of the State Bank was also allowed to purchase bullet proof vehicles without following procedure. The minister said these two orders were taken back by the government.
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