Unpaid electricity bills from K-Electric drove a Rs. 34 billion surge in Pakistan power-sector circular debt, pushing the total to Rs. 1.675 trillion by June 2026, according to the Power Division.
Data shared in the National Assembly indicated that the circular debt rested at Rs. 1.641 trillion at the conclusion of June 2025. The Power Division stated that the rise stemmed from unsettled payments owed by K-Electric.
An ongoing court case currently addresses the recovery of this outstanding balance.
To manage circular debt and lower unpaid liabilities within the energy sector, the administration launched a hybrid take-and-pay model for independent power producers.
