ISLAMABAD: More than three decades of power sector reforms have failed to restore confidence in Pakistan’s energy market, with persistent inefficiencies eroding economic growth, undermining consumer trust and aggravating financial stress, according to the National Electric Power Regulatory Authority (Nepra). Read More: NEPRA unveils 2025 net metering rules In its flagship State of the Industry Report […]
circular debt
Power users to pay debt surcharge for up to six years
ISLAMABAD: The government on Wednesday announced that the Rs3.23 per unit debt surcharge on electricity consumers would remain in place for up to six years as part of efforts to resolve the country’s long-running circular debt crisis. Read More: Govt ‘plans’ to collect Rs 278bn debt surcharge from power consumers The surcharge’s continuation accompanied the notification of a revised […]
Pakistan Seeks ADB Loan to Cut Circular Debt
Pakistan has approached the Asian Development Bank for help on circular debt. The government wants funds to clear Rs1.7 trillion power sector liabilities. Officials also aim to refinance costly commercial loans at better terms. Power Minister Awais Leghari made the request during a meeting with an ADB delegation. He asked for longer repayment periods and […]
IMF aims to maintain zero circular debt inflow this fiscal year
ISLAMABAD – The federal government has set a target to bring the power sector’s circular debt inflow to zero during the current fiscal year, a key condition set by the International Monetary Fund (IMF) for the release of a $1.2 billion tranche under the Extended Fund Facility (EFF). Read More: IMF to disburse $1.2bn to Pakistan […]
ECC approves Rs1.2tr circular debt plan
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday approved an inter-corporate circular debt settlement plan, including tariff rationalisation for all six operational nuclear power plants, aligning them with other power producers and paving the way for the eventual winding up of Power Holding Limited (PHL) — a company created to manage legacy […]
Pakistan’s power sector circular debt rises to Rs1.69 trillion
ISLAMABAD — Pakistan’s circular debt in the power sector surged by Rs79 billion during the first quarter of the fiscal year, reaching Rs1.693 trillion by the end of September 2025, according to a report issued by the Power Division. The report highlighted that the debt had stood at Rs1.614 trillion in June 2025, marking a […]
Power sector circular debt rises by Rs79bn
ISLAMABAD – Pakistan’s power sector circular debt rose by Rs79 billion in the first quarter (July–September) of the current fiscal year, reaching Rs1.693 trillion, according to a quarterly report by the Power Division. The increase comes despite government efforts to curb debt accumulation through capital injections and improved recovery mechanisms. The report showed that payables […]
Pakistan’s economy on right track, says finance minister
ISLAMABAD – Federal Finance Minister Muhammad Aurangzeb on Monday said Pakistan’s economy is stabilizing and reforms across major sectors are paving the way for sustainable growth. He emphasized that global rating agencies have recognized the country’s economic stabilization, adding that IMF staff-level agreements validate this progress. Aurangzeb noted that policy rate reductions have positively impacted […]
Pakistan to Open Electricity Market for the First Time
ISLAMABAD: Pakistan’s federal government has announced a major reform to open the country’s electricity market, allowing consumers to choose their power suppliers for the first time in history. According to Power Division Secretary Dr. Fakhar Alam Irfan, consumers using one megawatt or more will be able to select their electricity provider starting January 2026. The […]
Government plans 10% surcharge on electricity bills to control circular debt
The government has proposed adding a 10% surcharge on electricity bills to help reduce the growing circular debt in the power sector. To enable this, lawmakers will amend the NEPRA (National Electric Power Regulatory Authority) law. This amendment will allow the federal government to impose the surcharge under a new system called the Debt Servicing […]