The Power Division said Pakistan’s power sector recorded a significant decline in circular debt and distribution losses due to ongoing reforms.
According to the Power Division spokesperson, the power sector’s circular debt fell from Rs2,393 billion in fiscal year 2023-24 to Rs1,614 billion in 2024-25.
However, a Rs 98 billion cut in the Rs 893 billion budget allocation for FY2025-26 led to a Rs61 billion increase in circular debt this fiscal year. Had the full allocation been released, circular debt would have declined further to Rs1,577 billion.
According to the statement, losses dropped from Rs591 billion in 2023-24 to Rs397 billion in 2024-25, a reduction of Rs193 billion. The division further reduced losses to Rs326 billion during the current fiscal year.
The statement described the decline in circular debt and distribution losses as clear evidence that reforms in the power sector are producing positive and sustained results, adding that the budget cuts were a temporary financial factor rather than a sign of declining performance.
