Islamabad (Turkiye Khabar): A recent report by the International Monetary Fund International Monetary Fund has revealed that Pakistan’s total circular debt in the energy sector has surged to Rs. 5,206 billion.
According to the report, the gas sector’s circular debt has reached Rs. 3,442 billion, while liabilities in the electricity sector have been recorded at Rs. 1,764 billion.
The report states that the energy sector has remained under continuous financial pressure during the early part of 2026.
Details indicate that the government is implementing reforms to eliminate circular debt, including tariff adjustments and improving the subsidy system.
Under the International Monetary Fund (IMF) program, the federal government has committed to phased tariff adjustments and the removal of non-targeted subsidies.
It was further stated that accumulated debts in the energy sector will be converted into liabilities of the Central Power Purchasing Agency.
The government has assured the IMF that repayment of the principal debt will include additional surcharges on electricity consumers along with other strict measures.
