Rs930b Islamic funds curb debt

The federal government has completed a Rs930 billion Shariah-compliant financing deal to help reduce power-sector circular debt, The Express Tribune reported. Central Power Purchasing Agency-Guarantee (CPPA-G) disclosed the transaction at a public hearing and said settlements under it supported the government’s debt-reduction effort. The government also awarded Sitara-e-Imtiaz to CPPA-G’s chief executive and another official in recognition of their contribution.

CPPA-G asked the National Electric Power Regulatory Authority to let it submit a multi-year tariff application from financial year 2027-28, rather than immediately. The company said its board had asked management to prepare a tariff proposal using realistic operating and capital cost estimates, and that work was under way. It also cited Rs183.4 billion in consumer relief, Rs184.53 billion in savings from negotiated settlement agreements, and Rs795 billion in subsidies received by the power sector. For 2026-27, CPPA-G sought establishment spending of Rs2,504 million, Rs20 million below the prior year’s total.