Islamabad (HRNW)- During the first five months of the current fiscal year from July to November 2025, the circular debt of Pakistan’s power sector increased by Rs 223 billion, pushing the total debt to Rs 1,837 billion, compared to Rs 1,614 billion in June 2025.
According to a report, sources revealed that the circular debt continued to rise despite agreements signed two months earlier aimed at reducing the debt by Rs 1,225 billion. In September 2025, the government entered into agreements with banks; however, during October and November 2025, circular debt still increased by Rs 144 billion.
Sources further stated that the circular debt stood at Rs 1,693 billion in September 2025, showing a steady upward trend. However, compared to November 2024, when circular debt was Rs 2,381 billion, the current figure reflects a reduction of Rs 544 billion on a yearly basis.
It is worth noting that in September 2025, the federal government signed agreements with 18 commercial banks in an effort to control and reduce the growing circular debt burden in the power sector.
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