The energy sector in Pakistan has a huge circular debt of Rs4,177 billion. The records have shown that Pakistan’s energy sector is entirely funded by debt as the nation’s economic position worsens.
As a result of the government’s inability to pay independent power producers’ dues, the circular debt in the energy sector is also increasing.
According to the sources, the circular debt of the energy sector is growing by Rs129 billion every year.
Additionally, Pakistan State Oil (PSO) has a debt that has surpassed Rs600 billion, while the circular debt for the electrical sector has reached Rs2,277 billion. The national oil corporation of the nation has requested Rs 80 billion from the finance ministry to prevent the default of its letter of credit.
Similarly, the circular debt of the gas sector has reached Rs1,400 billion. The sources feard that the energy supply chain might get affected due to a massive rise in circular debt.