Pakistan’s circular debt in the power sector leaps to Rs 2.63 trillion.

In spite of the significant increase in power rates and fuel adjustments, the electricity division reported that the increase in circular debt persisted.

From January 24 to June 2023, the circular debt increase was recorded at Rs2,310 billion, indicating a rise of Rs325 billion over the seven-month period.

The International Monetary Fund (IMF) has “asked” Pakistan to raise the price of gas and electricity in order to finance the new loan program and reduce the circular debt of the power industry.

The International Monetary Fund (IMF) was assured by the Pakistani government that the circular debt of the power industry would remain at Rs2.31 trillion.

Prior before the Senate Standing Committee on Power, the Power Division gave a detailed presentation.

According to a briefing given by Power Division representatives, the circular debt is expected to remain at Rs2.31 trillion by June 2023.