Despite the massive increase in tariffs, the circular debt stock of Pakistan’s power sector increased to Rs2.31 trillion by the end of June 2023, up from Rs2.25 trillion at the end of the previous fiscal year (FY22) — a jump of Rs57 billion, or nearly 3%, in 12 months.
This is in stark contrast with figures of FY22, when the debt declined by Rs27 billion (from FY21 to FY22), clocking in at Rs2.25 trillion, data from the energy ministry’s Power Division showed on Tuesday.
According to a government document, total payables to the power producers stood at Rs1,351 billion, followed by Rs101 billion to generation companies’ (Gencos) payables to fuel suppliers, and Rs800 billion as the amount parked in Pakistan Holding Limi­ted (PHL) in fiscal year 2021-22.