K-Electric Responsible for Pakistan’s Worsening Circular Debt

Meanwhile, the Power Division has blamed unpaid K-Electric electricity bills for a Rs.

Key points

• The Power Division has blamed unpaid K-Electric electricity bills for a Rs.
• Figures presented in the National Assembly show that circular debt stood at Rs.
• Obtain the latest business news, market insights, and economic updates wherever you prefer.
• A case seeking recovery of the outstanding amount is at present pending in court.

Meanwhile, the Power Division has blamed unpaid K-Electric electricity bills for a Rs. 34 billion growth in the country's power-sector circular debt. It reached Rs. 1.675 trillion by June 2026.

Figures presented in the National Assembly show that circular debt stood at Rs. 1.641 trillion at the end of June 2025. According to the Power Division, the growth was due to unpaid dues of K-Electric.

In practice, a case seeking recovery of the outstanding amount is at present pending in court. Pakistan's Power and Gas Circular Debt Crosses Rs. 5 Trillion Combined.

For context, the administration has additionally introduced a hybrid take-and-pay model for independent power producers (IPPs) to support control circular debt and reduce outstanding liabilities in the power sector. Stay Connected with ProPakistani.

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Taken together, the developments around k-Electric Responsible for Pakistan's Worsening Circular Debt point to a situation that is still moving, and the coming days should bring more clarity.