CCOE weighs debt reduction

According to The Express Tribune, the Cabinet Committee on Energy has taken up the circular debt report covering January to March 2026, along with annual data for the year to June 2026. The Power Division told the meeting that circular debt stood at Rs1,798 billion by June 2026, a little under a target of Rs1,802 billion. Gross flows of circular debt, however, reached Rs420 billion against a Rs400 billion goal.

Unpaid dues from K-Electric were cited as a major obstacle to reducing the debt. The utility had not paid Rs171 billion, made up of a Rs148 billion CPPA-G invoice and Rs23 billion in late payment surcharge. Full settlement would have lowered circular debt by Rs175 billion, while a Rs13 billion fuel cost power surcharge also weighed on the total.

The committee reiterated its instructions that the Power Division pursue operational efficiency and lower spending to bring down electricity costs for consumers. It also asked for faster reforms to prevent future slippages and shortfalls across the sector, and the ministry agreed to speed up power-sector reforms. Separately, the Finance Division indicated the K-Electric dispute could be settled under the applicable Nepra Act or regulations.