Correct Comparison Shows Net Increase Below Rs 80B; Circular Debt Under Control
Islamabad, Pakistan, Web Desk: The Power Division has dismissed reports claiming a Rs 223 billion increase in circular debt during the first five months of FY2025-26 as misleading. According to a spokesperson, comparing July–November 2025 circular debt with June 2025 is incorrect; the proper comparison is with the same period last year. The rise was influenced by seasonal factors, and refinancing agreements with banks had no direct impact on circular debt flows. In fact, circular debt in December 2025 showed a significant decrease, and net increase from July–December remained below Rs 80 billion due to improved DISCO performance and elimination of late payments. The FY2024-25 circular debt reduced to Rs 1,614 billion by June 2025, with losses cut by Rs 193 billion in a year and an additional Rs 49 billion reduction from July–December 2025. The Power Division confirmed that circular debt will be fully controlled under a 6-year Rs 1,225 billion settlement plan.
