ISLAMABAD: (Rizwan Abbasi) Despite government measures to reduce the power sector’s circular debt, a significant increase has been recorded during the first eight months of the current fiscal year.
According to documents, the power sector’s circular debt has increased by Rs224 billion from July 2025 to February 2026.
According to the circular debt report of the Power Division obtained by Ausaf and ABN News, the total circular debt of the power sector increased to Rs1837 billion by February 2026, while its volume was Rs1614 billion at the end of June 2025.
According to the report, the government had signed agreements of Rs1225 billion with banks in September 2025 to reduce the circular debt, but despite this, the debt continued to increase. Sources say that the power sector’s circular debt increased by another Rs144 billion between October 2025 and February 2026.
According to the documents, the circular debt of Pakistan’s power sector was Rs 1693 billion as of September 2025. Experts say that it will be difficult to control circular debt without improving financial discipline and collection systems in the power sector.
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