Govt vows to end Rs 500bn circular debt in 60 days

E-Paper | May 07, 2026

ISLAMABAD: Finance Minister Ishaq Dar on Tuesday vowed to end Pakistan’s crippling circular debt worth over Rs 500 billion within 60 to 70 days.

The finance minister was presenting highlights from the Economic Survey of Pakistan for the year 2012-2013.

Pakistan suffers from a prevalent energy crisis, compounded by an acute shortage of liquidity in the cash-strapped power sector.

“We will try and end the circular debt as soon as possible,” said the finance minister.

“We have set the target for GDP growth rate at 4.4 per cent,” he said.

Real GDP growth for 2012-13 was estimated at 3.6 per cent compared to 4.4 per cent in the previous fiscal year 2012, according to the survey.

During the first nine months of 2012-13, fiscal deficit stood at 4.6 per cent, however Dar said that his government would curtail it through “strict financial discipline”.

The government had set a target of eight per cent for inflation in the next financial year, he added.

He said that the economy during the last five years grew on average at the rate of 2.9 per cent per year.

Dar went on to say that terrorism had also caused major damage to the economy, “however, we will bring the growth rate back up to seven per cent.”

He said that harsh decisions will need to made for the betterment of Pakistan’s economic conditions.

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Kurban

Jun 11, 2013 08:55pm

Time to sell. PIA. National shipping Corp. Railway, Steel Mill, PTLC, circuit houses, rest houses, guest houses,all public dispensaries, govt. medical colleges,poly tech. institutes, Hindu gymkhana, abolish PAKISTAN RADIO AND PAK TV STATIONS, telegraph dept. make all banks private except state bank of Pakistan. Pakistan post office must be revenue generating or going to become private just like in Japan. Pakistan printing press , and state bank of Pakistan should fully autonomous bodies.

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Jun 11, 2013 10:05pm

Hope that this time they will not ask the poor awam (Just like Nawaz did ones he wa sin power befoer 1999 "Qarz utaro mulk sawaro scheme"), lets help the goverment. you know our government is like a FIROON government, like suck the everysingle drop of blood of the paksitani awam. i do not knwo whythey do not Fear the one (Allah), who is more powerfull than them. 60 to 70 days is just a joke. They have not said when those 60 day will start. you have to have money in your account to do that, oh sorry there account is already so full that they still plan to add more, i was reffering to government account.

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A. Etchen

Jun 11, 2013 10:55pm

Tax to GDP ratio to be brought back to 7%! It is too low. It should be at least 15%. Another round of deficit financing and heavy borrowing. And I had thought this government would be a little better.

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muzammil ullah khan

Jun 11, 2013 11:06pm

Will it take 60 days to print the 60 billion required to clear the circular debt ?!! Good beginning by Ishaq Dar !! Print one billion a day and lo and behold the debt will be cleared after 60 days . Good maths !!!

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Gerry D'Cunha

Jun 12, 2013 12:51pm

Finance Minister Ishaq Dar on Tuesday vowed to end Pakistan

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