ISLAMABAD: According to The News, the government has created a detailed plan to handle the Rs 1,640 billion in circular debt in the gas industry.

To safeguard lower income users from an increase in gas costs, the plan calls for securing dividends of Rs 800-850 billion from the two gas companies, SNGPL and SSGCL, as well as raising the rate and modifying existing slabs.

The government is developing a strategy to eliminate the circular debt for the energy sector, which includes electricity and gas and has exceeded Rs4.1 trillion, in an effort to end the impasse with the IMF.

The government is also developing a strategy to deduct unpaid intergovernmental dues directly from the source. Numerous alternatives have been suggested to stop the accumulation of circular debt caused by unpaid invoices within state-owned firms (SOEs).

Saturday's meeting on energy sector reforms at the Finance Division was presided over by Finance Minister Senator Ishaq Dar

The special committee led by Ashfaque Tola calculated the circular debt in the gas sector and projected it to be Rs1,640 billion. The survival of the gas industry cannot be guaranteed without changes and a decrease in unaccounted for gas (UFG). While the government works to update the existing slabs with the purpose of avoiding burdening the lower slab users as much as possible, a rise in gas prices of between 60% and 78% is also planned.

According to a formal statement released by the Ministry of Finance, senior officers from the Finance and Petroleum divisions as well as Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, SAPMs on Finance and Revenue Tariq Bajwa and Tariq Mehmood Pasha, Ashfaq Yousuf Tola, the chairman of the RRMC and SECP, Controller General of Pakistan and Account

The chair was informed of the amount of circular debt in the gas sector as well as the procedures and framework for introducing reforms in the energy sector to lessen the burden of circular debt in the gas sector by Ashfaq Yousuf Tola, convener of the committee for the settlement of circular debt in the gas sector.

In order to achieve economic prosperity for the nation, the group reviewed workable proposals aimed at bringing sustainability to the energy industry.

Senator Ishaq Dar, the minister of finance, emphasised that the government's top goal is to address the problems in the energy sector, especially the circular debt, in order to ensure the industry's financial sustainability and the nation's economic progress. The committee was further instructed by the finance minister to complete its report and action plan for the early repayment of circular debt in the gas sector.