ISLAMABAD, Jan. 27 -- Pakistan's power sector circular debt rose by Rs75 billion in the first half of the current fiscal year despite significant capital injections and large-scale commercial borrowing, highlighting persistent structural weaknesses in the energy system.

Read More: Power Division denies Rs 224 billion circular debt spike reports

Official data from the power division showed that circular debt increased to Rs1.689 trillion by the end of December 2025, marking a 4.65 per cent rise during July-December FY26. The debt stock had stood at Rs1.614tr at the close of the previous fiscal year on June 30, 2025, after being reduced through capital injections of Rs780bn and commercial borrowing of around Rs1.225tr.

The data indicated...