Islamabad: During the first five months of the current fiscal year, from July to November 2025, the power sector’s circular debt increased by Rs 223 billion, raising the total circular debt of the electricity sector to Rs 1,837 billion, compared to Rs 1,614 billion in June 2025.
According to sources, the circular debt continued to rise despite the passage of two months since agreements aimed at reducing it by Rs 1,225 billion were signed.
Sources stated that the government entered into agreements with banks in September 2025; however, during the two months of October and November 2025, the power sector’s circular debt further increased by Rs 144 billion.
According to the data, the circular debt of the electricity sector stood at Rs 1,837 billion by November 2025, compared to Rs 1,693 billion in September 2025 and Rs 1,614 billion in June 2025. This reflects an overall increase of Rs 223 billion during the first five months of the fiscal year compared to June.
Sources further noted that compared to November 2024, the circular debt in November 2025 shows a reduction of Rs 544 billion, as the power sector’s circular debt had reached Rs 2,381 billion by November 2024.
It is noteworthy that in September 2025, agreements were signed between the federal government and 18 commercial banks to reduce the circular debt of the power sector.
