Pakistan’s power sector achieved a notable reduction in its circular debt. Official figures showed a decrease of Rs283 billion over 13 months. According to Power Division documents, the debt stood at Rs 2,396 billion by March 2025.
It went down from Rs 2,679 billion in February 2024. The most significant monthly improvement was in March 2025. When the debt decreased by Rs135 billion from the previous month’s Rs2,531 billion level.
This positive trend followed years of struggle with the chronic circular debt problem. It plagued Pakistan’s energy sector. The government’s efforts seem to be yield results, with consistent reductions in recent months.
However, the progress hasn’t been entirely linear – data reveals the debt increased by Rs3 billion during the first nine months of the current fiscal year, reaching Rs2,393 billion by June 2024 before the downward trend resumed.
The fluctuating figures highlight both the successes and ongoing challenges in addressing this complex financial issue. While the substantial reduction marks important progress. The temporary increase earlier in the fiscal year shows the structural weaknesses.
These weakesses continue to affect the power sector. Authorities remain focused on implementing sustainable solutions to maintain this positive momentum and achieve long term stability in Pakistan’s energy finances.