The Government of Pakistan has successfully resolved Rs. 1.23 trillion in power debt through a landmark restructuring deal. Officials confirmed the agreement will not impose any additional charges on electricity consumers.
The Ministry of Finance said the historic resolution was achieved through a coordinated effort led by the Prime Minister’s Task Force on Power, in collaboration with the Ministry of Energy, the State Bank of Pakistan, the Pakistan Banks Association, and 18 partner banks.
The restructuring plan covers Rs. 660 billion in existing loans and Rs. 565 billion in fresh financing to clear overdue payments to power producers. The government emphasized that repayments will be made using the existing surcharge of Rs. 3.23 per unit, ensuring consumers face no extra burden.
The deal also unlocks Rs. 660 billion in sovereign guarantees, providing liquidity for priority sectors including agriculture, small and medium enterprises (SMEs), housing, education, and healthcare. Analysts say this infusion of funds could boost economic activity and growth across these critical areas.
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, hailed the achievement as a step toward restoring fiscal discipline, investor confidence, and long-term energy sector sustainability. He credited the success to collaboration between public and private institutions and the technical expertise of all parties involved.
Experts have called the resolution of power debt without additional consumer costs a model for addressing Pakistan’s structural economic challenges. The government has demonstrated that financial stability and energy sector reforms can progress together.
The Ministry of Finance reaffirmed its commitment to balancing fiscal responsibility with sustainable energy reforms, signaling a new era of responsible governance. The successful resolution of power debt is expected to strengthen Pakistan’s economy and create opportunities for development in key sectors.
In other related news also read Pakistan’s Power Sector Circular Debt Declines By Twenty-Nine Percent
