Pakistan’s Power and Gas Circular Debt Crosses Rs. 5 Trillion Combined

Pakistan's combined circular debt throughout the power and gas sectors has crossed Rs.

Key points

• While the gas sector's debt swelled to Rs, 1, 675 billion by June 30, 2026.
• Recoverable oil reserves are estimated at 1, 378 million barrels, with crude oil production at 1, 102 million barrels.
• The Assembly was additionally informed that 15 villages in Dera Ismail Khan remain without electricity.
• Authorities attributed the rise mainly to non-payment for electricity supplied from the national grid to K-Electric.
• The Petroleum Division additionally shared updated figures on the country's hydrocarbon reserves.

Pakistan's combined circular debt throughout the power and gas sectors has crossed Rs. As the financial strain on the country's energy chain continues to mount, 5 trillion.

Notably, the power sector's circular debt reached Rs. While the gas sector's debt swelled to Rs, 1, 675 billion by June 30, 2026. 3, 631 billion over the same period, a combined burden of Rs. 5, 306 billion, according to details presented before the National Assembly.

According to details, Pakistan's power sector climbed to Rs. 1, 675 billion by June 30, 2026, up from Rs. 1, 641 billion at the close of fiscal year 2024-25, an growth of Rs. 34 billion in a single year, the Power Division informed the National Assembly.

Authorities attributed the rise mainly to non-payment for electricity supplied from the national grid to K-Electric. A case for the recovery of dues from K-Electric remains pending in court, the division remarked.

To rein in the mounting debt, the administration has concluded its take-and-pay agreements with independent power producers (IPPs) and introduced a hybrid take-and-pay model, authorities went on.

Meanwhile, the Assembly was additionally informed that 15 villages in Dera Ismail Khan remain without electricity. Though its completion is subject to the release of funds and the availability of equipment, a project to supply power to these villages has been prepared for the current fiscal year. Gas sector debt swells.

For context, the circular debt in the gas sector has risen even more sharply, increasing by Rs. 344 billion over the past year to reach Rs. 3, 631 billion by June 30, 2026, according to the Petroleum Division. Gas sector debt stood at Rs. 3, 288 billion on June 30, 2025.

In practice, the gas sector circular debt includes Rs. 1, 783 billion in late-payment surcharges, authorities stated.

In practice, the Petroleum Division additionally shared updated figures on the country's hydrocarbon reserves. Total recoverable gas reserves stand at 68, 803 billion cubic feet, of which 48, 140 billion cubic feet is at present being produced.

Recoverable oil reserves are estimated at 1, 378 million barrels, with crude oil production at 1, 102 million barrels. Stay Connected with ProPakistani.

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Taken together, the developments around pakistan's Power and Gas Circular Debt Crosses Rs. 5 Trillion Combined point to a situation that is still moving, and the coming days should bring more clarity.