Power sector circular debt increases by Rs147bn in first two months of 2025

Government sources said that circular debt of power sector stood at Rs2,531 billion till February 2025

By Rana Ghulam Qadir

April 09, 2025

A representational image of a transmission towers, also known as an electricity pylons. — AFP/File

ISLAMABAD: A huge increase of Rs147 billion has been revealed in the circular debt of the power sector in the first two months of the year 2025 as compared to December 2024, after which the debt has reached Rs2,531 billion.

Government sources said that the circular debt of the power sector stood at Rs2,531 billion till February 2025, which was Rs2,384 billion as of December 2024. It increased by Rs60 billion in January 2025 compared to December 2024, after which it rose to Rs2,444 billion by January 2025. It increased by another Rs87 billion in February 2025 compared to January 2025, i.e. during the two months to February 2025 compared to December 2024, the total circular debt increased by Rs147 billion.

As of June 2024, it was Rs2,393 billion and during the first eight months of the current financial year from July 2024 to February 2025, the circular debt increased by Rs138 billion. During the first half of the current financial year July-December 2024, the debt had decreased by Rs9 billion, but in the first two months of the year 2025, it continued to increase.