Circular debt inches up to Rs2.4tr

The power sector’s circular debt touched Rs2.396 trillion at the end of the first three quarters (July-March) of the current fiscal year, showing a modest Rs2 billion increase since July 1, but almost Rs398bn lower compared to March 2024. A Power Division report on circular debt for the period ending March 2025 showed that payables to power producers increased by around Rs33bn to Rs1.633tr, up from Rs1.60tr on July 1, 2024. On the other hand, the payables of public sector generation companies (Gencos) to fuel suppliers declined to Rs79bn by the end of March, down from Rs110b at the start of the fiscal year. The stock of circular debt parked in Power Holding Limited (PHL), a shell entity of the Power Division, remained unchanged at Rs683bn.