Power Division Blames Nature for Circular Debt Spike in Q1 FY26Power Division Blames Nature for Circular Debt Spike in Q1 FY26
The Power Division clarified on Wednesday that the Rs. 79 billion increase in circular debt during the first quarter of FY2025–26 was due to seasonal and operational factors.
The division said the increase “must be viewed in full context.” It noted that during the same period last year, the circular debt had increased by Rs. 73 billion, but by the end of that fiscal year, the overall stock was reduced by Rs. 780 billion.
The current rise reflects temporary trends and is expected to reverse over the course of the year. Distribution companies’ inefficiencies were also reduced by Rs. 67 billion in July–September 2025 compared to the same period a year earlier.
A few days ago, Power Minister Awais Leghari announced that the government aims to eliminate the circular debt within six years. However, he didn’t discuss how it would be done.
According to Arif Habib Limited, circular debt has already dropped to Rs. 899 billion. From Rs. 2.4 trillion in July 2024, the power sector’s debt is down 29 percent to Rs. 1.66 trillion as of July 2025.
The post Power Division Blames Nature for Circular Debt Spike in Q1 FY26 appeared first on ProPakistani.
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The Power Division clarified on Wednesday that the Rs. 79 billion increase in circular debt during the first quarter of… Read More
The post Power Division Blames Nature for Circular Debt Spike in Q1 FY26 appeared first on ProPakistani.