ISLAMABAD: Pakistan’s combined circular debt in the power and gas sectors has surged to Rs 5,100 billion, up from Rs 3,500 billion last year, the National Assembly Standing Committee on Finance was informed on Tuesday.
The committee also reviewed the country’s broader economic situation and fiscal priorities for the upcoming budget 2026–27, with discussions focusing on emerging economic risks, the performance of the IMF programme, and the need for structural reforms.
Officials briefed the committee that despite signs of gradual recovery, Pakistan remains on a path of “fragile stability.” For the fiscal year 2026–27, GDP growth is projected between 3.5% and 4.5%, while inflation has again entered double digits, reaching 10.9% year-on-year in April 2026.
During the meeting, lawmakers expressed serious concerns over the continued reliance on indirect taxation and petroleum levies instead of expanding the tax base.
The committee chair also highlighted growing pressures caused by rising circular debt, slow reforms in state-owned enterprises, inflation, unemployment, and increasing poverty levels across the country.
