Circular debt rises Rs61 billion to Rs1.675 trilli...

Summary

• Islamabad:  Pakistan’s power sector circular debt rose by Rs61 billion to Rs1.675 trillion by June 30, 2026, with the government blaming nonpayment by K Electric for electricity supplied from the national grid.
• The figures show that circular debt increased from Rs1.614 trillion at the end of financial year 2024 to 25 to Rs1.675 trillion at the end of June 2026.
• The government expects a decision soon, but the reply did not provide a date for the expected ruling or say how much of the circular debt increase was directly linked to the dispute.

AI Generated Summary

Islamabad:  Pakistan’s power sector circular debt rose by Rs61 billion to Rs1.675 trillion by June 30, 2026, with the government blaming nonpayment by K Electric for electricity supplied from the national grid. The government has told the National Assembly that a pending court case over K Electric’s tariff is a major reason for the unpaid amount, while a decision in the case is expected soon.

The disclosure came in a written reply by Energy Minister Sardar Awais Ahmad Khan Leghari to a question from MNA Mussarat Rafique Mahesar during the National Assembly’s 30th session. The figures show that circular debt increased from Rs1.614 trillion at the end of financial year 2024 to 25 to Rs1.675 trillion at the end of June 2026.