What is Circular Debt in Pakistan: Issues and Impacts [Article]


Power sector inefficiencies have cost this country significantly in direct budget costs in the last five years. In addition, growth has been slowed down by at least 2% per annum i.e., 10% lost growth in the last five years. Yet the problem is far from behind us. The restructuring and reform of the power sector has been held up for over two decades leading the costs to accelerate in recent years. The
important question that arises is “Why are we incapable of addressing such a big problem.” The problem requires careful study and research which can only happen if time and resources are devoted to the problem. With enough independent expertise and research for developing a body of knowledge on the required reform, a process of reform must be developed in Pakistan. There have been major
shortcomings at all levels of the reform spectrum which are split into three main areas:

1. At the policy level there is complete disarray between all entities involved. The Ministry of Water & Power, which is the main
policy maker of the sector has no roadmap set out for itself and is more reactive than proactive to power sector reforms which of
course is coupled by a lack of political will to help improve the system.

2. At the regulatory level there is an authoritarian attitude towards all entities involved. The regulator has failed to address or acknowledge problems of the power sector and is working in isolation.

3. At the entities level there is a complete breakdown of governance. Though they are being micromanaged by both the policy makers
and the regulator, the entities themselves have no aspirations of  moving ahead reforms and are happy to maintain status quo.

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Circular debt is one of the major issues in Pakistan. The Oil, Gas and Power sectors of Pakistan are the main sufferers of this giant dilemma to deal and manage the circular debt in an appropriate and suitable manner. The policy makers of Pakistan have been striving hard to find a way to solve this problem, but up till now they had not been able to find out an effective solution. Nonetheless, as a consequence of this, the circular debt in Pakistan as it is termedhas been circling around the three most important sectors of Pakistan, and the predicament is increasing day by day.

Circular debt arises when one of the two parties do not have enough cash to pay out its liabilities and pay the withholding payments to its suppliers.  This creates difficulty for the supplier to pay out its liabilities, which ultimately sets out an-unfathomable circle of debt liabilities in the economy.

In June 2011 the total circular debt reached to the level of more than Rs. 200bn, and in this year it is increasing by Rs.95 crore a day. It is a misfortune that mismanagement with regard of government owned power generation and power distribution agencies is one of the major reasons for a continuous increase in the circular debt of Pakistan. However a proper and cost effective management and organization of these companies would be able to reduce this debt position by a considerably higher level in the long run.

The significance of the management of the circular debt in Pakistan is not a secret any more. The government of Pakistan should try different types of strategies to critically fathom the core reason and find the solution that should be effective enough to positively deal with this critical issue as soon as possible.

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Thanks to http://www.pakonomy.com/2012/01/30/circular-debt-in-pakistan

Thanks to http://www.pc.gov.pk/hot%20links/2013/Final_USAID-Pakistan%20Circular%20Debt%20Report-Printed%20Mar%2025,%202013.pdf

Beautiful Pakistan – Don’t believe!!! Facts about Pakistan


Beautiful Pakistan

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Astola Island” [near Pasni Baluchistan 40 km from shore]

Astola is Pakistan’s largest offshore island and the only significant offshore island in the northern Arabian Sea.

253560_232809510077856_198199843538823_1033530_87982_n.jpg“Arror Rock” [near Rohri in Sindh]

The shape of rock was caused by unknown natural forces. There is also a Shrine on the top.

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This is an amazing view of a tunnel and bridge over a river on the railway track from “Rohri to Quetta”.

This track passes through 20 tunnels and over 368 bridges. It’s the longest Railway gradient of world, and most scenic Railway ride of Asia.

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Headmarala

Sialkot Mountains of Jammu & Kashmir in the background.

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Attabad Lake also known as Hunza Lake is a lake in the Hunza Valley of northern Pakistan.
The beautiful lake was formed due to a massive landslide at Attabad village in Gilgit-Baltistan, 9 miles (14 km) upstream (east) of Karimabad that occurred on January 4, 2010.

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Is this Great Wall of China?
No. It’s Wall of Sindh in Ranikot [3 hrs drive from Karachi]. It’s the part of one of the Largest Fort in World, Fort of Ranikot.

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Kalam Valley
It is a valley along the upper reaches of the Swat River in Swat, Pakistan. Kalam Valley is known for its waterfalls, lakes and lush green hills, and is a 270 km drive from Islamabad, the capital of Pakistan.

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Kachura Lake
The Kachura Lakes are two lakes in the Skardu District of Gilgit-Baltistan, Northern Pakistan. The lakes, at 2,500 metres (8,200 ft) in elevation, are Upper Kachura Lake and Lower Kachura Lake.

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This is a ‘Mud Volcano

In Pakistan there are more than 80 active mud volcanoes, all of them in Baluchistan province; there are about 10 locations
having clusters of mud volcanoes. In this region, the heights of mud volcanoes range between 800 to 1,550 feet (243.8 to 472.4 m). The most famous is Chandaragup.

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Laila Peak, Hushe, Karakoram Range, Pakistan
It has a distinctive spear-like shape. One of the most beautiful & scenic snow covered mountain of the world. The Laila peak has been climbed only twice.

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This is not Fox and Franz Josef Glacier, New Zealand
This is Biafo Glacier – which is a 63 km long glacier in the Karakoram Mountains, Pakistan meets the 49 km long Hispar Glacier at an altitude of 5,128 m (16,824 feet) at Hispar La (Pass) to create the world’s longest glacial system outside the polar regions.

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Makran, Pakistan
The present day Makran derived its name from Maka, a satrap of Achaemenid Empire. Maka was an important early eastern satrapy of Cyrus the Great, founder of the Achaemenid Empire.

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K2

It is the second-highest mountain on Earth, only after Mount Everest. It has a peak elevation of 8,611 m [28,251 feet]!!!

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Concordia Base Camp, Pakistan
This is the view from Concordia towards the valley of the Baltoro Glacier at dawn. On the left [Paiju peaks], middle ,[Trango towers] & on the right [Grand Cathedra].

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The epic Lake Saiful Muluk
It is located at the northern end of the Kaghan Valley (34°52′37.34″N 73°41′37.71″E) near Naran, Pakistan. The clarity of the water comes from the multiple glaciers all around the high basin which feed the lake.

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Village Halmet, Neelum Valley, Pakistan
Neelum Valley is definitely another hidden pearl of Pakistan. No other valley in Kashmir can compare this valley and even most of the Pakistanis know little about it and have little visited there.

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Lansdowne Bridge of Rohri, Pakistan
A marvel of nineteenth century engineering, the ‘longest “rigid” girder bridge in the world’ at that time, was begun in 1887.
Designed by Sir Alexander Meadows Rendel, the girder work weighing a massive 3,300 tons was erected by F.E. Robertson, and Hecquet.

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Is this Grand Canyon or Texas?
No. It’s Hingol National Park of Baluchistan, Pakistan. It got Mysterious Mud mountains, beautiful blue water Hingol river, desert and deep blue Arabian sea. [3.5 hrs drive from Karachi on Makran coastal highway]

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Cold Desert of Skardu in Pakistan
This is one of the most beautiful tourists attraction of Northern areas of Pakistan. There are huge sand plains in Skardu.

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Passu Peaks, Hunza, Pakistan
Mysterious mountains stand like a wall between Hunza river and valley.

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Uli Biaho Tower, Pakistan
It is a peak near Trango Towers and Baltoro Glacier in the Northern Areas of Pakistan. It consists of two main peaks,
Uli Biaho Tower (listed by Roskelley as 19,957 feet, and by Kopold as 6109 m (20,058 feet)); and Uli Biaho Peak (Kopold: 6417 m), which as of 2006 was unclimbed.

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Rakaposhi, Pakistan
Rakaposhi is also known as Dumani [Mother of Mist]. It is situated in the Nagar valley.

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Nanga Parbat
It is the ninth highest mountain on Earth and among the eight-thousanders with a summit elevation of 8,126 meters (26,660 ft).It is also an immense, dramatic peak that rises far above its surrounding terrain.

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Karamber Lake
Karambar Pass marks the boundary between the Chitral and Ishkoman Districts of Pakistan. The Karmabar Lake is almost 3 km long approx and it is 4300 meters above sea level. The flowers of autumns are worth seeing on this lake.

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Deosaid plains – Skardu

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Bara Pani – Deosai

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  Dudiptsar Lake or Dudipat Lake is a lake encircled by snow clad peaks in Lulusar-Dudipatsar National Park.
The lake lies in the extreme north of the Kaghan Valley

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Quaid–E–Azam M. Ali Jinnah Passport [Picture Gallery]


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Golden History – Old Currency of Pakistan [Free .PPT]


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