Islamabad: The World Bank has described the losses of the energy sector and revolving credit as a threat to the country’s economy.
According to the Pakistan Development Update Report issued by the World Bank, the revolving credit in the electricity and gas sector has reached 5 thousand 501 billion rupees.
By January 2024, the revolving debt of the power sector has reached 2635 billion rupees, which is equal to 2.4 percent of the GDP. Similarly, the circular debt in the gas sector has reached 2866 billion rupees. The debt of the gas sector is equivalent to 2.7 percent of the GDP.
According to the World Bank, if there are no reforms in the energy sector, there will be no choice but to increase the price of electricity. The report also emphasized on protecting the poor from the rising prices of electricity. According to the report, the distribution of electricity by 2022. Losses of car companies have increased to 0.5% from 0.2%.
The World Bank has assured support to reduce transmission losses in the energy sector, but has also made it clear that the government will also have to improve energy sector receipts. The World Bank has also emphasized on pension reforms for long-term financial stability.
The World Bank has also suggested raising taxes on socially harmful goods, including tobacco, and eliminating personal income tax withholding charges on consumption of energy products, telecommunications, financial services and others in order to reduce tax burden on poor and vulnerable households. The load can be reduced.
