ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has disputed the Power Division’s circular debt report, terming it a result of technical adjustments, accounting reclassifications, and shifting benchmarks rather than any real improvement in power sector efficiency.
In an analysis shared with Nepra and leading business houses, FPCCI alleged that financial liabilities were being parked off balance sheets, particularly rising payables of K-Electric, while fiscal injections from taxpayer money were used to show slower growth in circular debt instead of addressing structural issues such as cross-subsidies imposed on industry.
The FPCCI research team, led by Rehan Javed, noted that net circular debt rose by Rs75 billion during July–December 2025, compared to Rs79bn in July–September, indicating no material improvement in cash flows. It said a Rs224bn fiscal injection during the first half of the year masked the true increase, arguing that without this support, circular debt would have grown significantly.
The analysis added that reclassifying liabilities from “amount parked in PHL” to “CD Financing” changed presentation but did not reduce overall obligations, underscoring that the system remained operationally cash-negative.
Story by Khaleeq Kiani
