Pakistan’s power sector circular debt rises to Rs.1.675 billion

Add ARY News on GoogleFollow on Google DiscoverImage EnvatoAAResizeCircular debt in Pakistan’s power sector rose to Rs.1.675 trillion by 30 June 2026; the power division presented the details in the National Assembly.

The debt stood at Rs.1641 billion at the end of the 2024-25 financial year, marking an increase of Rs.34 billion over the year.

The Power Division attributed the rise to outstanding payments for electricity supplied from the national grid to K-Electric (KE).

It said a case seeking recovery of the outstanding dues from KE was pending in court.

Officials also said agreements with independent power producers (IPPs) based on the “take-or-pay” model had been terminated and replaced with a hybrid take-and-pay model in an effort to reduce circular debt.

The Power Division has also disclosed that 15 villages in Dera Ismail Khan remain without electricity.

It said that a project to provide electricity to these villages has been planned for the 2026-27 financial year.

However, completion of the project depends on the release of funds and the availability of equipment, according to the Power Division.

The Peshawar Electric Supply Company (PESCO) has announced a six-month schedule for power shutdowns to carry out maintenance and development work on the electricity network, and also advises against outages on Fridays and Sundays. According to an official notification, the schedule will remain in effect from 16 October 2026 to 31 March 2027. PESCO has […]