ISLAMABAD: Pakistan’s power sector is facing mounting financial stress as the circular debt surged by Rs147 billion in the first two months of 2025, reaching a staggering Rs2,531 billion by the end of February, up from Rs2,384 billion in December 2024.
According to government sources, the debt rose by Rs60 billion in January 2025, hitting Rs2,444 billion, followed by an additional Rs87 billion increase in February. The sharp rise reverses the slight improvement seen in the first half of the fiscal year.
Data shows that from July 2024 to February 2025, the circular debt rose by Rs138 billion. Notably, a Rs9 billion reduction was achieved between July and December 2024. However, the early months of 2025 have offset that progress, sparking concern over the sector’s financial stability and the effectiveness of existing reforms.
