Karachi: The Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Amaan Pracha, has called on the government to pass the benefits of a notable reduction in the power sector’s circular debt directly to electricity consumers.

Pracha highlighted a reduction of Rs. 700 billion in the circular debt, which has decreased from Rs. 2,300 billion to Rs. 1,600 billion. The decline is attributed to decreased electricity losses, enhanced recoveries by distribution companies (DISCOs), and savings from renegotiated agreements with Independent Power Producers (IPPs).

He emphasized the importance of significantly lowering electricity tariffs to ease the financial strain on the trade and industrial sectors.

Pracha also commended the Economic Coordination Committee’s (ECC) decision to approve a technical supplementary grant. This grant supports the electric vehicle subsidy, addresses remittance scheme claims, and provides free electric bikes to high-performing students of public colleges under the subsidy scheme.