PRIME Analytical Reports are independent evidence based studies on the investment climate, economic policies and demographic changes in Pakistan, prepared to improve understanding of business and policy challenges faced by the country’s private sector to help steer it on path of growth. This report focuses on Circular Debt.
Circular debt is the shortfall in collections by an entity which causes it to withhold payments to its suppliers spreading the cash crunch to the whole supply chain. More specifically, with regards to Pakistan’s power sector, circular debt refers to unpaid bills by DISCOs to key players especially: oil companies, gas companies, IPPs, and WAPDA.
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