Pakistan, Aug. 5 -- Pakistan has successfully reduced its power sector circular debt by Rs780 billion, bringing the total down to Rs1.614 trillion. The government credits this progress to lower line losses, improved bill recoveries, and cost savings from renegotiated contracts with Independent Power Producers (IPPs).

During a public hearing on quarterly tariff adjustments, Power Division officials informed Nepra that the performance of distribution companies had improved significantly. These improvements alone contributed savings of approximately Rs200 billion, with further reductions coming from contract revisions and other efficiency measures.

Despite the progress, some industrial stakeholders raised concerns about the long-term susta...