ISLAMABAD: Minister for Power, Sardar Awais Ahmed Khan Leghari has said that power sector circular debt will be brought down to zero in the next six years.
In a video message, released on Thursday, he said that at the beginning of our government, the circular debt was approximately Rs 2.4 trillion, of which it has been reduced by Rs 899 billion so far.
He further stated that a scheme to reduce circular debt by Rs 1.225 trillion has been signed, adding that consumers have been paying approximately Rs. 3.25 per unit as a debt service surcharge (DSS).
Pakistan’s power circular debt clocks in at Rs1.66tn
In the past, DSS was only used to pay the interest, while the principal amount remained unchanged. However, now the DSS will be used not only to pay interest, but also to repay Rs. 1.225 trillion in principal. He said that the goal is to bring the circular debt down to zero within the next six years. He further stated that this achievement is the result of the Prime Minister of Pakistan’s vision and leadership.
In his speech, Advisor to the Prime Minister on Privatisation, Muhammad Ali extended special thanks to Lt. General Zafar Iqbal, National Coordinator, accomplished negotiator, seasoned investment banker, and expert in the power sector — all in one. He said General Zafar Iqbal has been the driving force behind the Task Force’s success, and today’s achievement would not have been possible without his leadership.
The Task Force was effectively managed by a highly capable team led by Brigadier Faisal Jehangiri, with valuable support from Brigadier Khalid, Colonel Asim, and Farhan. “A heartfelt thanks also goes to all members of the Task Force, especially the dedicated team in the Analysis Cell. Since August of last year, they have worked tirelessly and passionately to address Pakistan’s power sector challenges,” Ali added. According to him, the Analysis Cell, headed by Sajid Akram of National Electric Power Regulatory Authority (NEPRA), played a pivotal role, supported by Ahmed Moiz from the Security Exchange Commission of Pakistan (SECP) — our lead negotiator with the banks for this financing — as well as Salman Rahman and Saba from NEPRA, Umair from CPPA, Asmat from SECP, and Asad Hussain, our expert from the Petroleum sector.
Copyright Business Recorder, 2025
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