Rs. 1.84 Trillion In Power, Rs. 3.4 Trillion In Gas, CPEC Liabilities At An All-Time High And Every Pakistani Consumer Already Paying A Rs. 3.23 Per Unit Surcharge To Service The Circular Debt
According to ProPakistani, Pakistan’s total energy sector circular debt has climbed to Rs. 5.2 trillion, combining a power sector debt of approximately Rs. 1.84 trillion and a gas sector debt that has surged to around Rs. 3.4 trillion.
The power sector figure alone rose by Rs. 224 billion in the first eight months of the current fiscal year, driven primarily by underperforming distribution companies whose inefficiencies contributed Rs. 141 billion to the accumulation.
The numbers inside the headline are striking. Liabilities tied to CPEC power projects have hit an all-time high of Rs. 543 billion. K-Electric’s unpaid dues to the government have jumped 67 percent since June 2025, reaching Rs. 365 billion; Rs. 169 billion in principal and Rs. 195 billion in markup, largely accumulated after the utility secured a court stay on its multi-year tariff determination.
The IMF has raised fresh concerns over the issue and its economic impact, with the matter expected to feature prominently in ongoing reform negotiations.
The government’s response has been a combination of borrowing and surcharges. In September, it secured Rs. 1.225 trillion from 18 commercial banks in six-year financing, repayable through 24 quarterly instalments funded by a Rs. 3.23 per unit surcharge on electricity consumers.
It has also prepared a 10-year plan to eliminate the gas sector’s circular debt, with a proposed Rs. 5 per litre levy on petrol and diesel to generate the funds needed. The government insists it is on track to achieve zero net addition to circular debt by the end of the fiscal year. The combined bill says otherwise.
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