Dossier
circular debt
Coverage of circular debt in the Nexus archive.
- Debt that stays
The power sector's circular debt increased by Rs61bn in the last fiscal year, breaching the IMF's Rs1.61tr cap. The Power Division attributes this to a Rs98bn federal subsidy cut, but systemic issues like distribution losses, transmission bottlenecks, and reliance on imported fuels persist, preventing sustainable debt reduction.
- Power division pins blame for circular debt on ‘Q Block’
The power division attributed a Rs61 billion increase in power sector circular debt to the Ministry of Finance, citing a Rs98 billion budget deduction. Despite this, the division highlighted a reduction in power distribution company losses from Rs591 billion in FY24 to Rs326 billion in FY25, attributing progress to sector reforms.