ISLAMABAD: Pakistan’s power sector has achieved a significant reduction in circular debt, shedding Rs 1,065 billion during the first 16 months of the current government’s tenure.
Official documents from the Power Division reveal the debt stood at Rs 2,679 billion in February 2024 but dropped sharply to Rs 1,614 billion by June 2025. This marks a reduction of nearly 40% over the period.
The most dramatic decrease occurred in June 2025 alone, when the debt fell by Rs 856 billion from May 2025’s level of Rs 2,470 billion.
The report also notes progress in the previous fiscal year (July 2023-June 2024), with circular debt decreasing by Rs 779 billion, bringing it to Rs 2,393 billion by June 2024. The latest figures indicate accelerated efforts to address the longstanding financial challenge in the power sector.
