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Circular debt of Pakistan: Understanding the crisis
Circular debt is a major financial problem in Pakistan's energy sector, created by a mismatch between the cost of generating electricity and the revenue collected from consumers. It involves a complex ...
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Power sector circular debt edges up despite paymentsPublished on: January 27, 2026 9:50 AM
ISLAMABAD, Jan. 27 -- Pakistan's power sector circular debt rose by Rs75 billion in the first half of the current fiscal year despite significant capital injections and large-scale commercial ...
Pakistan's energy sector has continued to operate under the persistent shadow of circular debt. Around the start of the fiscal year, the amount stood close to Rs1.7 trillion for the power sector and ...
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