ISLAMABAD: The country’s power sector circular debt stock stood at Rs 1.817 trillion during the first four months (July–October) of CFY 2025–26, with an addition of Rs 204 billion, compared to Rs 15 billion in the same period of 2024–25, reflecting an increase of 1,260 percent.
Official documents seen by Business Recorder revealed that the power sector’s payables to power producers amounted to Rs 1.069 trillion during the period, down from Rs 1.632 trillion in the corresponding period of 2024–25. Payables of GENCOs to fuel suppliers stood at Rs 89 billion, unchanged from the same period last year, while the amount parked in PHL was Rs 660 billion, compared to Rs 683 billion during the same period of 2024–25.
The documents further showed that the circular debt stock, which stood at Rs 2.404 trillion during July–October 2024–25, declined to Rs 1.817 trillion in the current fiscal year.
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The amount of budgeted but unreleased subsidies remained zero during the period, compared to Rs 11 billion in the same period last year. Similarly, unclaimed subsidy amounts were also reported as zero.
Interest charges (PHL–IPPs) stood at Rs 60 billion during the first four months, compared to Rs 62 billion in 2024–25, showing a reduction of Rs 2 billion. However, pending interest increased to Rs 16 billion, against negative Rs 30 billion in the corresponding period last year.
Non-payment by K-Electric (KE) amounted to Rs 58 billion, compared to Rs 2 billion in the same period of the previous fiscal year.
According to the Power Division, a total of Rs 277 billion — including Rs 88 billion in principal and Rs 189 billion in markup — is receivable from K-Electric as of October 2025.
Copyright Business Recorder, 2026
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