Category: Latest News

ISLAMABAD: The Power Division has requested Prime Minister Shehbaz Sharif to personally witness the signing of agreements with 18 banks for raising Rs1.225 trillion in loans aimed at partially retiring the power sector’s circular debt, which currently stands at around Rs1.7 trillion, down from Rs2.5 trillion, official sources confirmed. All codal formalities for the massive financing package have been completed. The boards of Discos, the Central Power Purchasing Agency-Guarantee (CPPA-G), Power Division, and Finance Division have cleared the agreements, while all requisite documents and guarantees are now in place. Sources…

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MULTAN/LAHORE: Widespread flooding in South Punjab has forced the Multan Electric Power Company (MEPCO) to suspend electricity supply to more than 113,000 consumers across 13 districts as a precautionary measure. Officials said power from 151 feeders was cut at the transformer level under safety SOPs to prevent accidents and protect lives. In Sahiwal, supply to 15,610 consumers on nine feeders was suspended, with restoration for 7,685 once water receded. In Bahawalpur, 22 feeders affecting 10,987 consumers were switched off. Lodhran, Pakpattan, and Rahim Yar Khan also saw feeder shutdowns impacting…

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ISLAMABAD: Pakistan’s energy sector remains a major drag on the economy, with accumulated liabilities exceeding Rs4.6 trillion and little progress on long-promised reforms. Weak recoveries, rampant theft, poor infrastructure, governance lapses, and market inefficiencies have entrenched the so-called “circular debt,” according to a new report by the Washington-based Institute of International Finance (IIF). The IIF estimates that energy-related debt now equals 4% of GDP, weighing heavily on fiscal stability, growth, inflation, and the external balance. Despite periodic government interventions — including a recent Rs800 billion payout — the underlying debt…

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Karachi, September 05, 2025: In a wide-ranging and hard-hitting interview published in the September 2025 issue of US award winning magazine SouthAsia, former Finance Minister Dr. Miftah Ismail delivers a sharp critique of Prime Minister Shehbaz Sharif’s economic governance, arguing that the country is not moving in the right direction and that urgent structural reforms are being ignored. Dr. Ismail, a two-time finance minister and renowned economist with a PhD from the Wharton School, emphasizes that while some macroeconomic stability has been achieved, it has come at the cost of…

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