Pakistan has shared with the World Bank a revised outline of the Circular Debt Management Plan that seeks rationalization of taxes, negotiated takeover of old independent power plants (IPPs) and closure of all old public sector plants to increase electricity tariffs, Dawn reported.

 This was decided at a meeting between Federal Minister for Finance and Revenue Shaukat Tarin-led team of economic ministers and Managing Director (Operations) of the World Bank Axel van Trotsenburg.

Federal Minister for Economic Affairs Omar Ayub Khan, Minister for Power Hammad Azhar, Special Assistant to the Prime Minister on Power Tabish Gauhar, SAPM on Revenue Dr Waqar Masood, the secretaries of finance, power and economic affairs divisions, Federal Board of Revenue chairman and State Bank of Pakistan governor attended the meeting.

An official statement said the energy minister briefed the World Bank MD about the efforts underway in the energy sector for bringing efficiency into the system by eliminating inefficient power plants to improve service delivery.

An official said this meant the government’s 3500MW power plants, half of which has already been closed, would be completely shut down in about 18 months.

The old power plants in the private sector would be taken over through the financial products to get out of their take or pay obligations as capacity charges in consumer tariff, the report said.

Rationalization of taxes, the takeover of old IPPs & closure of all old public sector plants to increase power tariffs are also included in the plan.