Financial pressure on Pakistan's energy supply chain has pushed the total combined circular debt for the power and gas industries past Rs. 5 trillion.
Data shared with the National Assembly indicates that power sector liabilities hit Rs. 1,675 billion by June 30, 2026, while gas sector liabilities grew to Rs. 3,631 billion, creating a total obligation of Rs. 5,306 billion.
The Power Division reported to the National Assembly that power sector obligations rose from Rs. 1,641 billion at the end of the 2024-25 fiscal year to Rs. 1,675 billion by June 30, 2026, marking a one-year increase of Rs. 34 billion.
Representatives explained that unpaid electricity bills from the national grid delivered to K-Electric drove the growth. A legal proceeding to recover these funds is currently before the court, according to the division.
Authorities stated that the administration terminated take-or-pay contracts with independent power producers and shifted to a hybrid take-and-pay framework to control the growing liabilities.
Lawmakers also learned that 15 settlements in Dera Ismail Khan lack electricity. An initiative to electrify these settlements has been drafted for the active fiscal year, though finishing the work depends on fund disbursement and material availability.
Gas sector debt swells
The Petroleum Division reported a steeper increase in gas sector circular debt, which grew by Rs. 344 billion within the year to total Rs. 3,631 billion by June 30, 2026. Gas sector liabilities were recorded at Rs. 3,288 billion on June 30, 2025.
Authorities noted that gas sector liabilities contain Rs. 1,783 billion originating from late-payment surcharges.
Reserves and production
The Petroleum Division additionally provided recent data regarding national hydrocarbon deposits. Available recoverable gas deposits total 68,803 billion cubic feet, with 48,140 billion cubic feet presently extracted.
Recoverable oil deposits measure approximately 1,378 million barrels, alongside crude oil extraction figures of 1,102 million barrels.
