ISLAMABAD, (Dunya News) — Pakistan’s circular debt in the power sector jumped by Rs79 billion between July and September 2025, reaching Rs1.693 trillion by the end of September, according to a report issued by the Power Division.
The report revealed that the circular debt stood at Rs1.614 trillion in June 2025, showing a worrying upward trend over the three-month period.
However, compared to September 2024, the debt showed a significant drop of Rs774 billion, as the figure had previously stood at Rs2.467 trillion last year.
Energy experts say the rise in circular debt between July and September reflects delayed payments, power theft, and inefficiencies within the energy chain.
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The increase has once again put the government under pressure to speed up reforms in the power sector and cut financial leakages.
Officials, however, pointed out that ongoing reforms and recovery efforts are expected to bring the numbers down in the coming months.