---
title: "Pakistan’s power sector circular debt rises by Rs61 billion in 2025-26 fiscal year"
description: "Most outlets reported the increase in Pakistan’s power sector circular debt by Rs61 billion in the 2025-26 fiscal year. BOL News highlighted the reduction in government budgetary support as a key factor, while Dawn emphasized that the debt increase breached the IMF’s condition to cap the stock at Rs1.61 trillion."
url: https://harzaviya.com/stories/812-pakistan-s-power-sector-circular-debt-rises-to-rs1-74
site: HarZaviya
language: en
---

# Pakistan’s power sector circular debt rises by Rs61 billion in 2025-26 fiscal year

business · updated 30 Jul 2026, 7:35 AM PKT · 28–30 Jul 2026 · 4 articles from 3 outlets over 2 developments

## How it developed

Newest development first. Each carries its own coverage and, where we have one, our summary of it.

### 29 Jul 2026 — Pakistan’s power sector circular debt rises by Rs61 billion in 2025-26 fiscal year (2 outlets)

> Most outlets reported the increase in Pakistan’s power sector circular debt by Rs61 billion in the 2025-26 fiscal year. BOL News highlighted the reduction in government budgetary support as a key factor, while Dawn emphasized that the debt increase breached the IMF’s condition to cap the stock at Rs1.61 trillion.

- **Dawn** — [Debt that stays](https://www.dawn.com/news/2019420/debt-that-stays) · 30 Jul 2026, 7:35 AM PKT
  > THE power sector’s circular debt grew by Rs61bn in the last fiscal year, taking the total to roughly Rs1.67tr from Rs1.61tr a year before. This breaches the IMF funding programme condition to cap the stock at Rs1.61tr. The Power Division blames a federal subsidy cut: Rs98bn was trimmed from the Rs893bn allocated for the sector, and officials say the debt would have fallen to Rs1.58tr without th...
- **BOL News** — [Pakistan’s power sector circular debt adds Rs61 billion in fiscal year 2025-26](https://www.bolnews.com/business/pakistans-power-sector-circular-debt-adds-rs61-billion-in-fiscal-year-2025-26/) · 29 Jul 2026, 12:22 PM PKT · 79% identical wording to the newest filing
  > ISLAMABAD: Pakistan’s power sector circular debt increased by Rs61 billion in fiscal year 2025-26 after the government reduced budgetary support by Rs98 billion, offsetting improvements from ongoing sector reforms, the Power Division said. The government originally allocated Rs893 billion for the power sector in the FY2025-26 budget but later slashed that amount by Rs98 billion, ... Read more T...

### 28 Jul 2026 — Pakistan's power sector circular debt rises to Rs1.74 trillion (2 outlets)

> Most outlets reported the increase in Pakistan's power sector circular debt, noting figures ranging from Rs1.675 trillion to Rs1.74 trillion. One outlet led with the government's attribution of the debt rise to the Ministry of Finance's "Q Block" policy, while another highlighted the debt's surpassing of the IMF target despite adjustment efforts.

- **Dawn** — [Power division pins blame for circular debt on ‘Q Block’](https://www.dawn.com/news/2019164/power-division-pins-blame-for-circular-debt-on-q-block) · 29 Jul 2026, 7:20 AM PKT
  > ISLAMABAD: The power division on Tuesday blamed the Ministry of Finance for a Rs61 billion increase in power sector circular debt, which rose to Rs1.675 trillion by June 30 this year from Rs1.614tr a year earlier. “Due to the budget deduction of Rs98bn, the circular debt witnessed an increase of Rs61bn” during FY2025-26, the power division said in a statement. It did not release the end-year fi...
- **Dunya News** — [Pakistan's power sector circular debt rises to Rs1.74tr, misses IMF target](https://dunyanews.tv/en/Business/965056-pakistans-power-sector-circular-debt-rises-to-rs174tr-misses-imf-) · 28 Jul 2026, 1:45 PM PKT · 74% identical wording to the newest filing
  > Pakistan's power sector circular debt reaches Rs1.74 trillion, exceeding the IMF target despite government subsidies and ongoing adjustment efforts.

## Part of a bigger story

Other stories whose coverage resembles this one, nearest first. "% related" compares whole stories, not single articles — see [what the percentages mean](https://harzaviya.com/methodology).

- [Pakistan's power and gas sector circular debt reaches record levels](https://harzaviya.com/stories/15271-pakistan-s-power-and-gas-circular-debt-crosses-rs-5-trillion) · 20 Oct 2026 · 7 outlets · 91% related
- [Pakistan's energy sector circular debt rises to nearly Rs5.3 trillion in FY2025-26](https://harzaviya.com/stories/3879-power-sector-circular-debt-balloons-from-rs61b-to-rs1-67tr) · 19 Aug 2026 · 2 outlets · 89% related
- [Pakistan's energy sector circular debt reaches Rs5.286 trillion](https://harzaviya.com/stories/4513-pakistan-s-energy-sector-circular-debt-reaches-rs5-286) · 24 Aug 2026 · 2 outlets · 83% related
- [Government to present IMF with three-year plan to address Rs3.6tr gas-sector debt](https://harzaviya.com/stories/8230-govt-to-present-imf-three-year-plan-to-clear-rs3-6tr-gas) · 13 Sep 2026 · 4 outlets · 2 developments · 73% related
- [Pakistan's public debt rises to Rs86.72 trillion by June 2026](https://harzaviya.com/stories/11655-total-public-debt-mounts-to-rs86-715b-by-june) · 1 Oct 2026 · 5 outlets · 2 developments · 73% related

4 articles from 3 outlets, 28–30 Jul 2026. Headlines and links belong to their outlets — HarZaviya links out and never copies article text.

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