ISLAMABAD: The government has paid back the circular debt of Rs85 billion while the remaining Rs12-15 billion would be paid back in the next couple of weeks, resolving a long standing issue of the energy sector.

Finance Minister Shaukat Tarin who met Prime Minister Syed Yusuf Raza Gilani at the PM House, briefed him on the overall economic situation in the country.

The prime minister was informed that during the last one month, inflation had come down by half a per cent while current account deficit in August was surplus as against a deficit of US $2 billion in August 2008. Record remittances worth $780 million were received during the last month.

He said the stock market responded positively because of economic results and the KSE 100-share index was close to 9,500. He said forex reserves bounced back to $14.4 billion, rising from $6.6 billion in October last year.

Shaukat Tarin also briefed the prime minister about his upcoming visits to New York and Istanbul for IMF and World Bank meetings.

The prime minister directed the finance minister to review the performance of some public sector organisations.—APP