CCOE weighs debt reduction

It was pointed out that the circular debt report for January, February and March 2026 had been shared with Nepra and the Finance Division.

Later, the Finance Division communicated that the dispute with K-Electric may be resolved under the relevant Nepra Act/regulations.Meeting participants reviewed the performance of power distribution companies vis-a-vis Nepra targets and compared to last year.

It noted that circular debt statistics as of the end of financial year 2025-26 had been finalised.The Power Division submitted the verified data of circular debt for the third quarter (January-March 2026) and the full financial year 2025-26, which ended on June 30, for consideration of the CCOE.During discussions, the division gave details of circular debt targets and the actual results by June 2026.

It was highlighted that the circular debt position was positive as it stood at Rs1,798 billion, which was lower than the target of Rs1,802 billion, with a positive variance of Rs4 billion.The actual gross flow of circular debt was Rs420 billion against the target of Rs400 billion, with a negative variance of Rs20 billion, while DISCOs' inefficiency, comprising transmission and distribution losses and under-recoveries, was calculated at Rs176 billion against….

Had full payments been received, the circular debt would have decreased by Rs175 billion.The cabinet body on energy reiterated its directives to the Power Division to seek all organisational ways to improve the financial performance through improved operational efficiency and reduction in expenditures, particularly in the power sector, to slash the cost of electricity for consumers.

The Power Division assured the committee that all necessary steps would be taken to address the circular debt.The CCOE considered the circular debt report for January, February and March 2026 and the annual report for the year ended June 2026.

CCOE weighs debt reduction ZAFAR BHUTTA | Updated 12 minutes ago | Delay in payments prevents Rs175b decrease in power-sector circular debt.

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