The Ministry of Energy (Power Division) has strongly rejected media reports claiming that circular debt increased by Rs 224 billion between July and November 2025. The Power Division spokesperson described these reports as misleading and contrary to facts, noting that recent data and the Ministry’s position were ignored.
According to the spokesperson, comparing the stock of June 2025 with November 2025 is incorrect, as the rise in circular debt is influenced by seasonal factors that are resolved by the end of the fiscal year. The Ministry clarified that in December 2025, the flow of circular debt decreased, leaving a net increase of less than Rs 80 billion between July and December. The Power Division expects to have full control over the circular debt position by the end of the current fiscal year.
The statement further mentioned that losses caused by DISCOs’ inefficiencies were reduced by Rs 193 billion compared to last year. The government is implementing a Rs 1,225 billion circular debt settlement plan under which this debt will be fully cleared over the next six years. The first installment of the plan has already been received, and it will not impose any additional burden on electricity tariffs for consumers.
