ISLAMABAD: Pakistan’s power sector circular debt increased by Rs34 billion to Rs1,675 billion by June 30, 2026, while gas sector circular debt surged by Rs344 billion to Rs3,631 billion during the same period, according to figures presented by the Power and Petroleum Divisions in the National Assembly on Monday.
Thank you for reading this post, don't forget to subscribe!During the question hour, the Power Division informed the House that power sector circular debt stood at Rs1,641 billion at the end of fiscal year 2024-25 before rising to Rs1,675 billion by June 30, 2026.
The division attributed the increase primarily to outstanding payments by K-Electric for electricity supplied through the national grid. It said a case involving the recovery of these dues was pending before a court, with a decision expected soon.
To address the circular debt problem, the government has introduced several measures, including the termination of costly independent power producer (IPP) contracts and a shift from the take-or-pay model to a hybrid take-and-pay arrangement. Other steps include waiving late payment interest, reducing interest rates on future contracts and capping rupee depreciation and annual inflation adjustments in tariff indexation.
The Power Division further disclosed that the government had secured a Rs1,225 billion circular debt financing facility from commercial banks at KIBOR minus 0.9 percentage points for six years. The facility was used to repay a previously contracted Rs659 billion loan carrying markup of up to KIBOR plus one percentage point, as well as to settle overdue payments to IPPs subject to waivers of late payment interest.
Meanwhile, the Petroleum Division informed the National Assembly that gas sector circular debt had risen from Rs3,288 billion on June 30, 2025, to Rs3,631 billion a year later, an increase of Rs344 billion. The total included Rs1,783 billion in late payment surcharges.
The division also provided details of Pakistan’s recoverable oil and gas reserves and cumulative production. The country’s recoverable gas reserves stood at 68,803 billion cubic feet (BCF), of which 48,140 BCF had been produced. Recoverable oil reserves were reported at 1,378 million barrels, while cumulative crude oil production amounted to 1,102 million barrels.
Separately, the Ministry of Foreign Affairs informed the National Assembly that 21,647 Pakistanis were imprisoned in 71 countries on charges involving various offences, including drug trafficking, currency-related offences, human smuggling and forgery.
In a written reply to a question by Tahira Aurangzeb, the ministry stated that 8,569 Pakistani prisoners had been sentenced, while the trials of more than 13,000 others were ongoing in foreign courts.
Saudi Arabia accounted for the largest number of imprisoned Pakistanis, with 10,745 nationals behind bars, followed by the United Arab Emirates with 5,297. Other countries with significant numbers included India, with 738 prisoners; China, with 625; Qatar, with 599; Oman, with 578; Greece, with 516; and Malaysia, with 444.
The figures also showed that 353 Pakistanis were imprisoned in Italy, 218 in Bahrain, 190 in Turkiye, 169 in Iran and 141 in the United States. Meanwhile, 23 Pakistanis were held in the United Kingdom and 27 in Australia.
