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Articles tagged “Circular Debt”

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PolicyAIJul 4, 2026

Senate Committee Unanimously Demands FIA and NAB Probe Into Foreign-Funded Power Projects

Pakistan's Senate Standing Committee on Economic Affairs Division has unanimously voted to brief the Prime Minister and formally request FIA and NAB investigations into alleged irregularities in foreign-funded power sector projects. The move came after the Economic Affairs Division said it cannot order inquiries into another ministry's affairs, prompting senators to accuse officials of obstructing parliamentary oversight.

⏱ 3 min readNEW

PolicyAIJun 26, 2026

Pakistan and Türkiye Hold High-Level Talks on Power Sector Privatisation

Pakistan's Adviser on Privatisation Muhammad Ali and Power Minister Sardar Awais Ahmad Khan Leghari held talks with Turkish officials on 25 June 2026 to explore cooperation on power sector privatisation and reform. The engagement reflects Islamabad's ongoing push to offload loss-making state-run distribution companies as part of its IMF programme commitments.

⏱ 3 min read

IndustryAIJun 25, 2026

AGP Audit Flags Unaudited DISCO Accounts and Rs117.8bn FBR Super Tax Shortfall

Pakistan's Auditor General has flagged HESCO, LESCO, and FESCO for operating without audited accounts from 2023 to 2025, leaving the finances of three major electricity distribution companies unverified. The same report identifies Rs117.8 billion in under-realised FBR super tax and Rs117 billion in outstanding petroleum recoveries.

⏱ 3 min read

PolicyAIJun 19, 2026

Senate Pushes for Electricity Tariff Cuts and Circular Debt Roadmap in FY2027 Budget

Pakistan's Senate on Thursday adopted 123 budget recommendations for FY2026-27, including calls for lower electricity tariffs, removal of fixed charges and GST from bills, and a transparent roadmap to reduce capacity payments and circular debt. The proposals are non-binding on the National Assembly, which will review them before casting the final budget vote.

⏱ 4 min read

Solar & WindAIJun 7, 2026

Pakistan Officially Ends Net Metering as New 2026 Solar Policy Takes Effect

Pakistan has officially ended its net metering programme in 2026, closing nearly a decade in which rooftop solar owners could export surplus power and cut their electricity bills to near zero. The policy change affects both existing solar licence holders and anyone planning a new rooftop installation, fundamentally shifting the financial logic of going solar.

⏱ 3 min read

PolicyAIJun 1, 2026

Talks With Chinese Power Producers Yield No Result Yet, Leghari Confirms

Power Minister Awais Leghari confirmed that negotiations with CPEC-linked Chinese power producers have produced no meaningful concessions despite ongoing efforts at debt-reprofiling. Pakistan has secured over Rs. 3.5 trillion in savings by renegotiating deals with 29 other private and state-owned power plants, but CPEC's government-to-government framework makes similar concessions far more diplomatically complex.

⏱ 3 min read

PolicyAIMay 26, 2026

NA Finance Panel Warns Energy Prices Surged 68pc Amid Circular Debt Crisis

Pakistan's electricity, fuel, and LPG prices rose between 43 and 68 percent this fiscal year, a UNDP economist warned the National Assembly's Standing Committee on Finance and Revenue on Monday. The panel also criticised the government for missing its own budget-law deadlines and making little progress on reducing the energy sector's ballooning circular debt.

⏱ 3 min read

PolicyAIMay 22, 2026

Decarbonising Pakistan's Textile Exports: A NEPRA, Wheeling-Tariff, and Net-Metering Roadmap for EU CBAM Compliance

The EU's CBAM is now in its definitive phase, and Pakistan's textile sector — sending 26% of exports to the EU — has run out of room to delay decarbonisation. A working roadmap runs through NEPRA's net-metering caps, wheeling tariffs, solar PPA frameworks, and circular-debt unwind.

⏱ 5 min read

PolicyAIMay 22, 2026

PAC Orders Cabinet Division Report on Nespak's Rs 43 Billion Project Losses

Pakistan's Public Accounts Committee has directed the Cabinet Division to submit a full inquiry report on Nespak's alleged multi-billion rupee irregularities, centred on the Rs 43 billion Neelum Jhelum Hydro Power Project. Auditors estimate Rs 42.9 billion in losses from the project, which has been unable to generate power since a second tunnel collapse in May 2024.

⏱ 3 min read

IndustryAIMay 21, 2026

Pakistan's Foreign Investment Falls 31pc But Power Sector Attracts Most Capital

Pakistan's foreign direct investment fell 31 per cent to $1.409 billion in the first ten months of FY2026, with April recording a particularly weak $54 million net inflow. The power sector was the top destination for foreign capital at $785.6 million, outpacing all other industries despite ongoing tariff and capacity payment pressures.

⏱ 3 min read

IndustryAIMay 21, 2026

NHA Contractor Payment Standoff Mirrors Pakistan's Power-Sector Circular Debt Pattern

NHA contractors protested in Karachi over Rs. 4.2 billion in unpaid invoices — a standoff structurally identical to the payment-chain failure that drove Pakistan's power-sector circular debt past Rs. 2.5 trillion.

⏱ 3 min read

Company NewsAIMay 15, 2026

Altern Energy Terminates Key Power Agreements with Pakistan Government and CPPA-G

Altern Energy Limited has terminated several key agreements with the Government of Pakistan and CPPA-G, the state body responsible for bulk electricity procurement. The move adds to growing tensions between Pakistani authorities and independent power producers over capacity payments, circular debt, and ongoing contract renegotiations.

⏱ 3 min read

PolicyAIMay 15, 2026

IMF Flags Gulf Fuel Dependency as Top Energy Risk for Pakistan After $1.1 Billion Tranche

The IMF has flagged Pakistan's 81 per cent reliance on Gulf fuel imports as its most serious external economic risk following the release of a $1.1 billion programme tranche. Energy pricing has been listed as a prior action for completing the IMF review, signalling that domestic fuel and electricity costs are likely to rise in the months ahead.

⏱ 4 min read

IndustryAIMay 15, 2026

India's First Fuel Price Hike in Four Years Signals Wider Energy Cost Pressure for Pakistan

India has raised retail fuel prices for the first time in four years as global crude oil surges above $120 per barrel following Strait of Hormuz disruptions tied to the Iran conflict. Pakistan faces direct exposure through NEPRA fuel cost adjustments on electricity bills and rising LNG import costs.

⏱ 4 min read