ISLAMABAD: The Ministry of Energy informed the National Assembly on Friday that Pakistan’s circular debt has decreased by Rs9 billion in the first half of the current fiscal year, attributing the improvement to the government’s targeted reforms.
In a written response to the House, the ministry reported that circular debt stood at Rs2,393 billion as of June 2024, and had reduced to Rs2,384 billion by December. It credited improved recovery rates from power distribution companies (Discos) and implementation of strategic reforms for the progress.
As part of its 2025–2029 roadmap, the ministry outlined measures such as computerized audits of distribution transformers to detect power losses, and the introduction of advanced metering infrastructure (AMI) for real-time monitoring to identify unauthorized consumption.
The ministry stressed the importance of ensuring that all electricity consumers have functioning meters and announced plans to install area bundle contractors in regions with high theft. Recovery actions under the Land Revenue Act will also target permanently disconnected defaulters.
To curb grid dependency, the strategy includes the solarization of agricultural tube wells and the launch of a recovery scheme for local administrations and Discos to collect outstanding dues.
Meanwhile, the National Electric Power Regulatory Authority (NEPRA) approved an average Rs1.71 per unit subsidy for electricity consumers—applicable from April to June. The Rs58.6 billion relief will be funded by a Rs10 per litre petroleum levy imposed in March. Although the base electricity tariff remains unchanged, officials confirmed a Rs1.90 per unit negative quarterly adjustment, subject to currency and interest rate fluctuations.
Story by Irfan Sadozai
