{"id":15568,"date":"2026-04-28T12:45:12","date_gmt":"2026-04-28T12:45:12","guid":{"rendered":"https:\/\/www.hrnww.com\/?p=15568"},"modified":"2026-04-28T12:45:12","modified_gmt":"2026-04-28T12:45:12","slug":"power-sector-circular-debt-crisis-rs-224-billion-surge-in-8-months","status":"publish","type":"post","link":"https:\/\/www.hrnww.com\/?p=15568","title":{"rendered":"Power Sector Circular Debt Crisis: Rs. 224 Billion Surge in 8 Months"},"content":{"rendered":"<div id=\"model-response-message-contentr_030bb0c7e0ca9365\" class=\"markdown markdown-main-panel enable-updated-hr-color\" dir=\"ltr\" aria-live=\"polite\" aria-busy=\"false\">\n<div id=\"model-response-message-contentr_301d56a96bf9d688\" class=\"markdown markdown-main-panel enable-updated-hr-color\" dir=\"ltr\" aria-live=\"polite\" aria-busy=\"false\">\n<p data-path-to-node=\"1\"><b data-path-to-node=\"1\" data-index-in-node=\"0\">ISLAMABAD (HRNW):<\/b> Pakistan&#8217;s power sector is facing an escalating financial emergency, with official data revealing a substantial increase in circular debt. During the first eight months of the current fiscal year, from July 2025 to February 2026, the power sector\u2019s circular debt rose by a staggering <b data-path-to-node=\"1\" data-index-in-node=\"302\">Rs. 224 billion<\/b>, according to documents released by the Power Division.<\/p>\n<p data-path-to-node=\"2\">The data indicates that as of February 2026, the total volume of circular debt reached <b data-path-to-node=\"2\" data-index-in-node=\"87\">Rs. 1,837 billion<\/b>. This marks a sharp climb from the <b data-path-to-node=\"2\" data-index-in-node=\"140\">Rs. 1,614 billion<\/b> recorded at the close of the previous fiscal year in June 2025.<\/p>\n<h3 data-path-to-node=\"3\"><b data-path-to-node=\"3\" data-index-in-node=\"0\">Persistent Increases Despite Intervention:<\/b><\/h3>\n<p data-path-to-node=\"4\">The upward trend continued even after the government initiated major structural reforms and signed agreements in September 2025 aimed at reducing the debt by Rs. 1,225 billion. Following these initial efforts, when the debt stood at Rs. 1,693 billion, it further escalated by <b data-path-to-node=\"4\" data-index-in-node=\"276\">Rs. 144 billion<\/b> between October 2025 and February 2026.<\/p>\n<p data-path-to-node=\"5\">Sources highlight that systemic inefficiencies and low recovery rates are significant drivers of this persistent growth. The mounting circular debt not only strains the nation\u2019s power infrastructure but also poses a critical challenge to Pakistan&#8217;s fiscal stability and its ongoing commitments to international financial institutions.<\/p>\n<hr data-path-to-node=\"6\" \/>\n<p data-path-to-node=\"7\"><b data-path-to-node=\"7\" data-index-in-node=\"0\">Appeal for Support:<\/b><\/p>\n<p data-path-to-node=\"7\">Support <b data-path-to-node=\"7\" data-index-in-node=\"28\">HRNW<\/b>, the world\u2019s No. 1 human rights news portal, in its mission to be a timely voice for human rights and public issues. Your contribution enables us to continue our journey of promoting truth and being a voice for the oppressed.<\/p>\n<p data-path-to-node=\"8\">To support us, please click this link: <a class=\"ng-star-inserted\" href=\"https:\/\/www.hrnww.com\/?page_id=1083\" target=\"_blank\" rel=\"noopener\" data-hveid=\"0\" data-ved=\"0CAAQ_4QMahgKEwikl-OPx5CUAxUAAAAAHQAAAAAQpwE\">https:\/\/www.hrnww.com\/?page_id=1083<\/a><\/p>\n<\/div>\n<\/div>\n<div class=\"pvc_clear\"><\/div>\n<p id=\"pvc_stats_15568\" class=\"pvc_stats total_only  \" data-element-id=\"15568\" style=\"\"><i class=\"pvc-stats-icon medium\" aria-hidden=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" version=\"1.0\" viewBox=\"0 0 502 315\" preserveAspectRatio=\"xMidYMid meet\"><g transform=\"translate(0,332) scale(0.1,-0.1)\" fill=\"\" stroke=\"none\"><path d=\"M2394 3279 l-29 -30 -3 -207 c-2 -182 0 -211 15 -242 39 -76 157 -76 196 0 15 31 17 60 15 243 l-3 209 -33 29 c-26 23 -41 29 -80 29 -41 0 -53 -5 -78 -31z\"\/><path d=\"M3085 3251 c-45 -19 -58 -50 -96 -229 -47 -217 -49 -260 -13 -295 52 -53 146 -42 177 20 16 31 87 366 87 410 0 70 -86 122 -155 94z\"\/><path d=\"M1751 3234 c-13 -9 -29 -31 -37 -50 -12 -29 -10 -49 21 -204 19 -94 39 -189 45 -210 14 -50 54 -80 110 -80 34 0 48 6 76 34 21 21 34 44 34 59 0 14 -18 113 -40 219 -37 178 -43 195 -70 221 -36 32 -101 37 -139 11z\"\/><path d=\"M1163 3073 c-36 -7 -73 -59 -73 -102 0 -56 133 -378 171 -413 34 -32 83 -37 129 -13 70 36 67 87 -16 290 -86 209 -89 214 -129 231 -35 14 -42 15 -82 7z\"\/><path d=\"M3689 3066 c-15 -9 -33 -30 -42 -48 -48 -103 -147 -355 -147 -375 0 -98 131 -148 192 -74 13 15 57 108 97 206 80 196 84 226 37 273 -30 30 -99 39 -137 18z\"\/><path d=\"M583 2784 c-38 -19 -67 -74 -58 -113 9 -42 211 -354 242 -373 16 -10 45 -18 66 -18 51 0 107 52 107 100 0 39 -1 41 -124 234 -80 126 -108 162 -133 173 -41 17 -61 16 -100 -3z\"\/><path d=\"M4250 2784 c-14 -9 -74 -91 -133 -183 -95 -150 -107 -173 -107 -213 0 -55 33 -94 87 -104 67 -13 90 8 211 198 130 202 137 225 78 284 -27 27 -42 34 -72 34 -22 0 -50 -8 -64 -16z\"\/><path d=\"M2275 2693 c-553 -48 -1095 -270 -1585 -649 -135 -104 -459 -423 -483 -476 -23 -49 -22 -139 2 -186 73 -142 361 -457 571 -626 285 -228 642 -407 990 -497 242 -63 336 -73 660 -74 310 0 370 5 595 52 535 111 1045 392 1455 803 122 121 250 273 275 326 19 41 19 137 0 174 -41 79 -309 363 -465 492 -447 370 -946 591 -1479 653 -113 14 -422 18 -536 8z m395 -428 c171 -34 330 -124 456 -258 112 -119 167 -219 211 -378 27 -96 24 -300 -5 -401 -72 -255 -236 -447 -474 -557 -132 -62 -201 -76 -368 -76 -167 0 -236 14 -368 76 -213 98 -373 271 -451 485 -162 444 86 934 547 1084 153 49 292 57 452 25z m909 -232 c222 -123 408 -262 593 -441 76 -74 138 -139 138 -144 0 -16 -233 -242 -330 -319 -155 -123 -309 -223 -461 -299 l-81 -41 32 46 c18 26 49 83 70 128 143 306 141 649 -6 957 -25 52 -61 116 -79 142 l-34 47 45 -20 c26 -10 76 -36 113 -56z m-2057 25 c-40 -58 -105 -190 -130 -263 -110 -324 -59 -707 132 -981 25 -35 42 -64 37 -64 -19 0 -241 119 -326 174 -188 122 -406 314 -532 468 l-58 71 108 103 c185 178 428 349 672 473 66 33 121 60 123 61 2 0 -10 -19 -26 -42z\"\/><path d=\"M2375 1950 c-198 -44 -350 -190 -395 -379 -18 -76 -8 -221 19 -290 114 -284 457 -406 731 -260 98 52 188 154 231 260 27 69 37 214 19 290 -38 163 -166 304 -326 360 -67 23 -215 33 -279 19z\"\/><\/g><\/svg><\/i> <img decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"https:\/\/www.hrnww.com\/wp-content\/plugins\/page-views-count\/ajax-loader-2x.gif\" border=0 \/><\/p>\n<div class=\"pvc_clear\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>ISLAMABAD (HRNW): Pakistan&#8217;s power sector is facing an escalating financial emergency, with official data revealing a substantial increase in circular debt. During the first eight months of the current fiscal year, from July 2025 to February 2026, the power sector\u2019s circular debt rose by a staggering Rs. 224 billion, according to documents released by the&#8230;<\/p>\n<div class=\"pvc_clear\"><\/div>\n<p id=\"pvc_stats_15568\" class=\"pvc_stats total_only  \" data-element-id=\"15568\" style=\"\"><i class=\"pvc-stats-icon medium\" aria-hidden=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" version=\"1.0\" viewBox=\"0 0 502 315\" preserveAspectRatio=\"xMidYMid meet\"><g transform=\"translate(0,332) scale(0.1,-0.1)\" fill=\"\" stroke=\"none\"><path d=\"M2394 3279 l-29 -30 -3 -207 c-2 -182 0 -211 15 -242 39 -76 157 -76 196 0 15 31 17 60 15 243 l-3 209 -33 29 c-26 23 -41 29 -80 29 -41 0 -53 -5 -78 -31z\"\/><path d=\"M3085 3251 c-45 -19 -58 -50 -96 -229 -47 -217 -49 -260 -13 -295 52 -53 146 -42 177 20 16 31 87 366 87 410 0 70 -86 122 -155 94z\"\/><path d=\"M1751 3234 c-13 -9 -29 -31 -37 -50 -12 -29 -10 -49 21 -204 19 -94 39 -189 45 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