Due to effective measures adopted by the federal government and the Special Investment Facilitation Council (SIFC), the power sector circular debt declined by Rs800 billion in one year, it was reported on Friday.
According to the details, in September 2025, the power sector’s circular debt stood at Rs1700 billion, which showed a reduction of 31.40 percent.
During the month of September 2024, the power sector’s circular debt was Rs2500 billion. In September 2025, power distributors’ outstanding dues reached Rs944 billion.
In July 2025, independent power producers (IPPs) outstanding amount was Rs908 billion.
The government was liable to pay Rs93 billion under the head of fuel supply to power producers’ companies.
Rs660 billion was allocated for the power holding company. There was an increase of Rs77 billion in circular debt during the previous fiscal year.
The basic cause of the increase in circular debt was poor performance of independent power companies (DISCOs).
