The Power Division has blamed unpaid K-Electric electricity bills for a Rs. 34 billion increase in the country’s power-sector circular debt, which reached Rs. 1.675 trillion by June 2026.
Figures presented in the National Assembly show that circular debt stood at Rs. 1.641 trillion at the end of June 2025. According to the Power Division, the increase was due to unpaid dues of K-Electric.
A case seeking recovery of the outstanding amount is currently pending in court.
The government has also introduced a hybrid take-and-pay model for independent power producers (IPPs) to help control circular debt and reduce outstanding liabilities in the power sector.
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