Overview
- Power Minister Awais Leghari announced a syndicated Islamic financing of Rs1.225 trillion with 18 banks, reported at KIBOR minus 0.9% and expected to lower interest costs by about 3.5% to 5.5%.
- The government says the circular debt stock fell to about Rs1.614 trillion by June 2025 and contends the new facility will reduce it to roughly Rs389–400 billion.
- Officials plan to service the bank exposure through a surcharge of about Rs3.23 per unit on electricity bills, which they say will end within five to six years.
- During technical talks in Islamabad, the IMF pressed for zero fresh inflows into circular debt in the current fiscal year and was briefed on moving annual tariff rebasing to January 1 starting in 2026.
- Media reports say authorities told the IMF they will seek a waiver on Rs220 billion in late‑payment surcharges claimed by Chinese IPPs, a stance that could carry fiscal and diplomatic risks.