Islamabad (HRNW)- The latest IMF report has revealed that Pakistan’s total circular debt in the energy sector has reached Rs 5,206 billion.
According to report, the circular debt in the gas sector has risen to Rs 3,442 billion, while liabilities in the electricity sector stand at Rs 1,764 billion. The data indicates that the energy sector has remained under continuous financial pressure up to early 2026.
The report states that the government is implementing measures to rationalize subsidies and reform tariffs in order to address the growing circular debt. As part of its ongoing program with the International Monetary Fund (IMF), the federal government has committed to regular tariff adjustments and the gradual phasing out of non-targeted subsidies.
It further adds that accumulated energy sector debts will be transferred to the Central Power Purchasing Agency, while the government has also assured the IMF of additional measures, including imposing surcharges on electricity consumers to help repay outstanding liabilities.
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