The federal government on Thursday has decided to immediately pay back Rs: 50 billion in circular debt. According to the confirmed sources of Finance Ministry the pronouncement has been taken after independent power producers (IPP) endangered that they will suspend power generation.
The phase-wise payment will be started from Monday after the Ashura holidays and the weekend, sources added.
On Monday, Rs: 34 billion will be paid to the Ministry of Power and the remaining Rs: 16 billion will be given at the end of next month, they added.
The Rs: 50 billion have been taken as loan from eight banks, sources further said.