The power sector’s circular debt has shrunk by Rs 283 billion during the first 13 months of the current government’s tenure, official documents from the Power Division revealed Monday.
According to the documents, by the end of March 2025, the sector’s circular debt stood at Rs 2,396 billion — a significant decline from Rs 2,679 billion recorded in February 2024. This marks steady progress in tackling one of the country’s most stubborn financial crises.
The report further disclosed that compared to February 2025, the circular debt dropped by Rs 135 billion in March alone, signaling a positive monthly trend. As of February 2025, the debt had been recorded at Rs 2,531 billion.
However, the relief hasn’t been without hiccups. The data showed that during the first nine months of the current fiscal year, there was a slight increase of Rs 3 billion in circular debt, reflecting persistent structural weaknesses despite broader improvement.
By June 2024, the circular debt had been hovering around Rs 2,393 billion.