Islamabad, Pakistan – Web Desk (May 16, 2026): Pakistan’s energy sector circular debt has reached a dangerous level of 5,206 billion rupees, according to the latest International Monetary Fund (IMF) report.
The financial crisis has hit both gas and power sectors. The gas sector’s circular debt alone has climbed to 3,442 billion rupees, while the power sector’s payable liabilities stand at 1,764 billion rupees, according to a private TV channel report citing official data.
The report revealed that the energy sector remained under sustained financial pressure through early 2026.
To address the crisis, the government is pursuing tariff reforms and rationalization of the subsidy system. Under the ongoing IMF program, the federal government has committed to regular tariff adjustments and a phased elimination of untargeted subsidies.
Additionally, accumulated debt in the energy sector will be converted into Central Power Purchasing Agency (CPPA) obligations. The government has also assured the IMF of implementing tough measures, including imposing additional surcharges on electricity consumers to repay the principal debt.
