ISLAMABAD: Pakistan’s chronic power sector circular debt surged by Rs79 billion in the first quarter (July–September) of fiscal year 2025–26, pushing the total to Rs1.693 trillion by the end of September, according to the latest report released by the Power Division.
The debt stock, which was Rs1.614 trillion at the close of FY2024–25, has resumed its upward trajectory, reigniting concerns over inefficiencies, financial leakages, and weak governance within the electricity supply chain.
Energy experts attributed the increase to persistent power theft, poor bill recoveries, and structural weaknesses across state-run distribution companies (Discos). They warned that without meaningful reforms, the circular debt could continue to grow, further straining public finances.
Receivables from K-Electric alone reached Rs229 billion by September 2025 — comprising Rs42 billion in principal and Rs187 billion in markup. The mounting receivables and debt accumulation, analysts said, underscore the urgency for the government to implement financial and operational reforms to stabilize the sector and reduce the burden on the national exchequer.
Story by Israr Khan
