Overview
- Pakistan has set a fiscal-year goal of zero net inflow into power-sector circular debt, tied to a $1.2 billion IMF tranche under the EFF.
- Circular debt stands at roughly Rs1,615 billion, with sources warning it could approach Rs2,300–2,350 billion without corrective action.
- The plan projects Rs212 billion in relief from annual tariff rebasing (Rs55b), reduced DISCO losses (Rs18b), and improved recoveries (Rs121b).
- Authorities aim to close a remaining Rs522 billion gap through Rs120 billion in principal repayments and about Rs400 billion in disbursements to IPPs and state plants.
- The IMF has emphasized zero inflow as a core reform commitment, and officials caution that strict implementation and timely payments are essential to avoid pressure on tariffs and fiscal stability.