Total gas sector’s circular debt hits Rs5.454trn

According to Business Recorder, Ali Pervaiz Malik, the federal energy minister for the Petroleum Division, said the combined figure for gas sector circular debt and supplier dues reached Rs5.454 trillion by June 30, 2026. In written replies in the National Assembly, circular debt alone was put at Rs3.631 trillion, while gas payables came to Rs1.823 trillion. Of the circular debt, tariff differentials made up Rs1.448 trillion, power company receivables Rs131 billion, receivables tied to sales and income taxes Rs210 billion, and litigation-related amounts Rs59 billion.

The principal portion of the total was Rs1.848 trillion, while the surcharge on late payments, known as LPS, stood at Rs1.783 trillion. Amounts owed to indigenous gas suppliers reached Rs1.479 trillion, and LNG supplier payables, which cover diversion costs and RLNG price actualisation, came to Rs344 billion.

The minister said the Circular Debt Management Plan (CDMP) is being finalised with all relevant stakeholders before going to the competent forum for approval. Once approved, the plan will be passed to the IMF within the current policy and reform framework.