Pakistan’s growing circular debt crisis in the power and gas sectors has once again raised serious concerns about the country’s economic stability. Officials informed the National Assembly Standing Committee on Finance that the total circular debt has now surged to an alarming Rs. 5.1 trillion.
The latest figures reveal a sharp increase from nearly Rs. 3.5 trillion recorded last year. The massive jump highlights the worsening financial pressure on Pakistan’s energy sector, which continues to struggle with inefficiencies, delayed payments, and rising operational costs.
To understand the scale of the problem, a simple calculation paints a shocking picture. If Pakistan were to start paying off the circular debt at a rate of Rs. 10 lac per day, it would still take approximately 13,972 years to completely clear the amount.
The staggering estimate reflects how deeply rooted the circular debt issue has become in the country’s economic system. Experts believe the problem is fueled by multiple factors, including electricity theft, transmission losses, subsidies, poor recovery rates, and delayed government payments to energy companies.
The power sector has remained under pressure for years as distribution companies continue to face financial shortfalls. These losses eventually pile up and create a chain reaction across fuel suppliers, power producers, and government institutions.
Economists warn that the continuously rising circular debt could further weaken investor confidence and create additional challenges for Pakistan’s already strained economy. The burden also affects consumers directly through higher electricity and gas tariffs.
Government officials have repeatedly announced plans to control the circular debt crisis through reforms and restructuring measures. However, despite several policy efforts, the liabilities have continued to rise year after year.
The issue remains one of the biggest economic hurdles for Pakistan, with policymakers facing increasing pressure to introduce sustainable long-term solutions. Without structural reforms in the energy sector, experts fear the circular debt could continue to expand at an unsustainable pace.
The latest revelation has sparked debate across economic and political circles, with many questioning how the country can stabilize its energy sector while managing such an enormous financial burden.
