Published on, Sept. 23 -- September 23, 2025 3:50 AM

Pakistan's power sector circular debt stood at Rs 1.66 trillion in July 2025, declining sharply by 29.3% from Rs 2.35 trillion in July 2024, according to data compiled by Arif Habib Limited (AHL). However, the stock increased marginally by 2.9% month-on-month (MoM).

According to the data, payables to power producers accounted for the largest chunk of the debt, which amounted to Rs 908 billion in July, up 5.5% MoM but significantly lower, i.e. 41.8% than Rs1.56 trillion during the same month last year.

Meanwhile, GENCOs' payables to fuel suppliers remained at Rs93 billion, showing a 13.1% annual drop. Debt parked in the Power Holding Limited (PHL) stood at Rs660 billion, unchanged fro...