Power sector: Circular debt flow declines to Rs75bn in 1H

The country’s power sector circular debt flow declined to Rs75 billion during the first six months (July– December) of FY 2025–26, bringing the total stock down to Rs1.689 trillion, following the injection of a Rs200 billion subsidy approved by the federal government.

Of the Rs200 billion, Rs105 billion was released to the Power Division as a Technical Supplementary Grant (TSG) from the Finance Division (Demand No47), while the remaining Rs95 billion was provided from the Power Division’s own Demand No35 under the head of Government of Pakistan investment in DISCOs’ equity.

During the corresponding period of FY 2024–25, the circular debt stock stood at Rs2.384 trillion, with a marginal negative flow of Rs9 billion.