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Pakistan Confirms Rs79 Billion Q1 Rise in Power Circular Debt to Rs1.693 Trillion

Officials cite seasonal operational pressures, saying the uptick will not affect consumer tariffs.

Overview

  • The circular debt stock reached Rs1.693 trillion at end-September from Rs1.614 trillion in June, a Rs79 billion increase in Q1 FY2025-26.
  • Payables to power producers rose by Rs83 billion to Rs944 billion during the quarter, according to official data.
  • The Power Division attributed the rise to higher fuel costs, delayed payments and weaker distribution company recoveries.
  • Year-on-year performance indicators improved, with DISCO inefficiencies reduced by Rs67 billion and under-recoveries lower than the same quarter last year.
  • The report flagged Rs229 billion in receivables from K-Electric and noted Rs19 billion in subsidy releases, while the total debt remains roughly Rs774–780 billion below last year’s level.