Author: Admin

Seasonal Factors Behind Circular Debt Increase, Says Power Division

Admin
Power-Division

ISLAMABAD: The Ministry of Energy (Power Division) has attributed the rise in circular debt between July and November 2025 to seasonal factors that affect monthly debt flows, stressing that such increases are typically reversed by the end of the fiscal year. In a statement, a Power Division spokesperson said that circular debt flows eased in December 2025, bringing the net increase to less than Rs80 billion for the July–December 2025 period. “It is important to note that the circular debt flow declined in December 2025, resulting in a net debt…

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Govt Drops Plan to Terminate APL Deal, Explores Alternative Use of Strategic Pipeline

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gas-pipeline

ISLAMABAD: The government has shelved a proposal to unilaterally revoke the implementation agreement with Asia Petroleum Limited (APL), citing concerns over potential damage to foreign investor confidence, and has instead decided to pursue an alternative use of the strategic pipeline to facilitate a third entry point for white oil imports into the country. The Economic Coordination Committee (ECC) has approved the new approach and constituted a high-level committee to finalise the terms and conditions for the alternative use of the pipeline by January 31, 2026, viewing the move as a…

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KE Cleared from Al Jomaih Power Suit, Board Elections Still on Hold

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K-Electric

ISLAMABAD: K-Electric (KE) Limited has announced that it is no longer a party to a major legal case after Al Jomaih Power Limited and other plaintiffs withdrew their claims, leading to the dismissal of all related proceedings by a Karachi court. Despite this development, KE remains unable to hold board elections due to continuing judicial restraints and a standing regulatory directive from the Securities and Exchange Commission of Pakistan (SECP). In a material information disclosure submitted to the Pakistan Stock Exchange (PSX) and the SECP on January 26, 2026, KE…

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Circular Debt Climbs Again Despite Heavy Borrowing, Capital Injection

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Circular-Debt

ISLAMABAD: Despite substantial capital injections and over Rs1.225 trillion in commercial borrowing during the last fiscal year, Pakistan’s power sector circular debt rose by Rs75 billion in the first half (July–December) of the current fiscal year, reaching Rs1.689 trillion — a 4.65 per cent increase in six months. At the close of FY25 on June 30, 2025, circular debt stood at Rs1.614 trillion, having been reduced by Rs780 billion through government capital injections and about Rs1.225 trillion in commercial borrowing, largely aimed at replacing expensive Power Holding Private Limited (PHPL)…

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FPCCI has called for the immediate correction of industrial electricity tariffs by demanding the removal of cross subsidies

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FPCCI

Atif Ikram Sheikh, President FPCCI Karachi: Mr. Atif Ikram Sheikh, President FPCCI, has called called for the immediate correction of industrial electricity tariffs by demanding the removal of cross subsidies; Power Holding Limited (PHL) surcharge and a rational redesign of peak-hour (Time-of-Day) electricity charges, which are placing an unsustainable burden on Pakistan’s industrial and export sectors. The FPCCI President Atif Ikram Shaikh stated that industrial electricity tariffs have drifted far away from cost-reflective principles. Instead of reflecting the actual cost of power supply, tariffs have become layered with non-energy charges…

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