Power Division Attributes Rs. 34 Billion Debt Rise to K-Electric

Pakistan's power-sector circular debt increased by Rs. 34 billion, reaching Rs. 1.675 trillion by June 2026. The Power Division has attributed the rise to unpaid bills by K-Electric for electricity supplied through the national grid.

In this article we set out the increase, who is being blamed, and the case that is not finished. Here is everything you need to know.

Why officials are pointing to K-Electric

The attribution comes from the Power Division: unpaid bills for grid electricity. The recovery case is currently pending in court, so the claim has not been settled there. Separately, the government is introducing changes to power-purchase agreements to help control the growing debt. This update does not state a court outcome or a figure for how much of the Rs. 34 billion is solely K-Electric's.

Why it matters

Rs. 34 billion is the increase that took the power-sector stock to Rs. 1.675 trillion by June 2026. The Power Division's explanation is unpaid K-Electric bills. Until the court case ends, that explanation remains the division's attribution.

• Power-sector circular debt rose by Rs. 34 billion
• The stock reached Rs. 1.675 trillion by June 2026
• The Power Division attributes the rise to K-Electric
• The bills are for electricity from the national grid
• Recovery is pending in court
• Power-purchase agreements are being changed to help control the debt

What this attribution leaves open

1. A court ruling.
2. How much of the Rs. 34 billion the case covers.
3. The detail of the new power-purchase agreements.
4. K-Electric's response.

What happens next

The recovery case is still in court, and the government is changing power-purchase agreements. We will update this article if the court rules or the agreement changes are published.

Our verdict

Power-sector circular debt rose by Rs. 34 billion to Rs. 1.675 trillion by June 2026. The Power Division attributes that rise to unpaid K-Electric bills, and the recovery case is pending in court.

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