Islamabad: (RightNow). The federal government and the IMF have not reached an agreement on settling the gas sector’s circular debt. The government proposed reducing the debt to Rs 1,700 billion.

Sources reveal that the IMF has presented new conditions. The circular debt in the gas sector has reached Rs 3,300 billion. The IMF has expressed concern over this situation.

Virtual negotiations took place between Pakistan’s economic team and the IMF. The government team attempted to persuade the IMF on the settlement plan, but no agreement was reached. The next round of talks is expected in September.

According to sources, the IMF has suggested fulfilling new conditions before the next negotiation phase. The IMF wants the settlement plan to include the losses of gas companies.

It is noteworthy that the final discussions on the settlement plan with the IMF will now occur in September. This settlement plan will be prepared with IMF’s advice to reduce the circular debt.