Power sector circular debt at Rs1,675 billion; K-Electric blamed
Officials told the National Assembly that power sector circular debt reached Rs1,675 billion by June 30, 2026, with unpaid K-Electric bills behind most of the rise.
Power sector circular debt stood at Rs1,675 billion on June 30, 2026, up Rs34 billion from Rs1,641 billion a year earlier.
The Power Division attributed the rise mainly to electricity supplied from the national grid to K-Electric that remains unpaid.
A case to recover the K-Electric dues is pending in court.
Gas sector circular debt rose Rs344 billion to Rs3,631 billion, taking the combined burden to Rs5,306 billion.
The government ended take-and-pay agreements with independent power producers and introduced a hybrid model.