Pakistani government clears $0.49bn circular debt

The Pakistan Muslim League Nawaz (PML-N) led Pakistani government has completed a non-cash transaction of USD 0.14 billion through book adjustments to clear the circular debt of energy sector. The Finance Ministry's adviser and spokesman, Rana Assad Amin told that the finance ministry cleared USD 0.35 of the total circular debt of USD 0.49 last month. The advisor further told that the circular debt stood at USD 0.51 billion and a partly sum of USD 0.22 billion related to cases filed by independent power producers (IPP) in the apex court was now outstanding. The Finance Ministry has cleared the circular debt of energy sector by paying off the remaining USD 0.14 billion through book adjustments. Moreover, the newly appointed Chairman Federal Board of Revenue (FBR), Tariq Bajwa declared zero tolerance over the corruption in the tax machinery. While attending a meeting of chief commissioners of 18 regional tax offices and three large taxpayer units, he told that no one would be spared if found involved in corrupt practices. The FBR has been facing crisis as Pakistan has incurred the highest ever shortfall in the FBR history of over USD 0.46 billion in revenue collection in the current fiscal year 2012-2013.