Pakistan’s power division confirms Rs79 billion debt increase

ISLAMABAD: The Power Division has confirmed an increase of Rs79 billion in Pakistan’s circular debt during the first quarter of the current fiscal year. According to a spokesperson, the rise was mainly due to seasonal and operational factors.

The spokesperson clarified that from July to September 2025, inefficiencies among distribution companies (DISCOs) were reduced by Rs67 billion, showing improvement in their performance. He added that some sections are presenting the increase in circular debt with misleading interpretations.

The government remains committed to controlling the growth of circular debt, the spokesperson said, noting that during the same period last year, the debt had increased by Rs73 billion.

He further stated that by the end of the last fiscal year, the total circular debt was reduced by Rs780 billion, reflecting the government’s strong resolve to stabilize the power sector.

The spokesperson emphasized that temporary fluctuations in circular debt will not affect consumer electricity tariffs, assuring that the situation remains under control.

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