ISLAMABAD: The government on Thursday announced the successful conclusion of a landmark Rs1.225 trillion circular debt resolution plan, assuring that the arrangement will not impose any additional burden on power consumers. Repayments, it clarified, will be serviced through the already levied surcharge of Rs3.23 per unit.
In a statement, the Ministry of Finance said the breakthrough was achieved through coordinated efforts of the Prime Minister’s Task Force on Power, the Ministry of Energy, the State Bank of Pakistan, the Pakistan Banks Association, and 18 commercial banks.
The agreement covers the restructuring of Rs660 billion in existing loans and Rs565 billion in fresh financing to clear overdue payments to power producers. It also unlocks Rs660 billion in sovereign guarantees, releasing liquidity for key sectors including agriculture, SMEs, housing, education, and healthcare.
“This restructuring represents a decisive step in addressing one of the most chronic challenges of Pakistan’s energy sector,” the finance ministry said.
Finance Minister Muhammad Aurangzeb hailed the deal as a milestone toward restoring fiscal discipline, investor confidence, and energy sector sustainability. He said the achievement demonstrates the government’s ability to resolve long-standing structural bottlenecks while maintaining financial stability.
Aurangzeb added that the resolution sets an important precedent for tackling Pakistan’s economic challenges through “innovation, unity, and resolve,” while signalling the government’s firm commitment to both reform and consumer protection.
