Pakistan, May 16 -- Pakistan's circular debt in the energy sector has climbed to Rs5,206 billion, highlighting continued financial stress in the country's power and gas systems, according to the latest figures cited in an International Monetary Fund (IMF) report.

Read More: Power sector circular debt edges up despite payments

The report shows that the total circular debt includes Rs3,442 billion in the gas sector and Rs1,764 billion in the electricity sector. The combined figure reflects persistent structural challenges in Pakistan's energy pricing, recovery mechanisms and subsidy framework.

The IMF report indicates that by early 2026, the accumulated debt in both gas and electricity sectors has continued to rise despite ongoing reform...