Pakistan's combined circular debt across the power and gas sectors has crossed Rs5,306 billion, according to figures presented to the National Assembly. The total stood at that level on June 30, 2026. Circular debt is the chain of unpaid dues in the energy system, where money owed by one party is not passed on to the next, leaving the whole chain short of cash.
The power sector accounts for Rs1,675 billion of the total, while the gas sector accounts for Rs3,631 billion. The Power Division told the Assembly that power-sector debt was Rs1,641 billion at the close of fiscal year 2024-25, so it rose by Rs34 billion in a year. The Petroleum Division said gas-sector debt climbed by Rs344 billion over the same period, from Rs3,288 billion on June 30, 2025.
Power sector: K-Electric dues and a new purchase model
Officials attributed the power-sector rise mainly to unpaid bills from K-Electric, the Karachi-based utility, for electricity supplied from the national grid. A case to recover those dues is still pending in court.
To limit the growth of the debt, the government has ended its take-and-pay agreements with independent power producers, the private companies that generate electricity, and introduced a hybrid take-and-pay model. Under take-and-pay, the buyer is obliged to pay for the power it takes. Officials said the change is meant to rein in the mounting debt.
The Assembly was also told that 15 villages in Dera Ismail Khan still have no electricity. A supply project for them has been prepared for the current fiscal year, though its completion depends on the release of funds and the availability of equipment.
Gas sector debt and hydrocarbon reserves
The gas sector holds the larger share of the debt, and it includes Rs1,783 billion in late-payment surcharges, officials said. Late-payment surcharges are extra charges added when dues are settled late.
The Petroleum Division also shared updated hydrocarbon figures. Total recoverable natural gas reserves stand at 68,803 billion cubic feet, of which 48,140 billion cubic feet is being produced at present. Recoverable crude oil reserves are put at 1,378 million barrels, with crude production given as 1,102 million barrels. Recoverable reserves are the amounts that can be extracted under current conditions.
The K-Electric recovery case is the main pending item in the power sector, and its outcome could affect whether those amounts are recovered.
Timeline: what has happened so far
- June 30, 2025: Power sector circular debt stood at Rs1,641 billion and gas sector debt at Rs3,288 billion.
- June 30, 2026: Power sector debt reached Rs1,675 billion, gas sector debt Rs3,631 billion, and the combined total Rs5,306 billion.
- June 30, 2026: Officials said Rs1,783 billion of the gas sector debt consists of late-payment surcharges.
Aasan alfaaz mein
Pakistan mein bijli aur gas ka circular debt 30 June 2026 tak Rs5,306 billion tak pahunch gaya hai. Is mein gas ka hissa Rs3,631 billion aur bijli ka Rs1,675 billion hai. K-Electric ke unpaid bills ki wajah se bijli ke qarz mein Rs34 billion ka izafa hua. Aam log ke liye iska matlab hai ke bills aur qeematon par dabao barh sakta hai, aur hukumat ke iqdamaat ka asar aane wale mahinon mein dekha jayega.
