Petroleum Minister Warns of Circular Debt Surge Amid LNG Agreement Breaches
Federal Minister for Petroleum, Ali Pervaiz Malik, has raised alarms over a potential rise in Pakistan’s circular debt, attributing the concern to energy companies backing out of LNG purchase agreements.
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“The IMF has set a condition to eliminate circular debt,” the minister stated, “but some power companies are violating agreements by refusing to buy LNG cargoes. Initially, six vessels were committed to—now they’ve reduced it to only four.”
Malik underscored the government’s efforts to find sustainable solutions to the ongoing energy crisis. “We will first break the cycle of circular debt,” he said, adding that the ministry is exploring multiple options to ensure its complete elimination.
The remarks highlight growing pressure on Pakistan to meet IMF targets while maintaining stability in the energy sector.
