PM Shehbaz says circular debt had been consuming all available resources and kept rising unchecked
NEW YORK: (UrduPoint/UrduPoint / Pakistan Point News-Sept 25, 2025) Prime Minister Shehbaz Sharif said that addressing the mounting circular debt in the power sector is a significant achievement, as it had been draining the country’s resources.
Speaking virtually at the inauguration ceremony of the Circular Debt Reduction Plan in New York, the Prime Minister stated that circular debt had been consuming all available resources and kept rising unchecked. He credited the Energy Minister-led task force for its dedicated efforts and successful negotiations with independent power producers (IPPs), adding that the plan was the result of collective efforts.
Shehbaz Sharif acknowledged that line losses in the power sector remain a major challenge, noting that this issue will be the next focus. He also shared that he had a productive meeting with the IMF Managing Director, who praised Pakistan’s economic progress.
Energy Minister Awais Leghari, while addressing the event, said that circular debt had placed a heavy burden on the economy and negatively impacted the energy sector. He highlighted that a consensus-based action plan was developed, and the debt reduction scheme is part of broader power sector reforms. According to him, the scheme aims to eliminate circular debt within the next six years.
Finance Minister also spoke on the occasion, noting that structural issues in the power sector are being addressed. He said efforts to resolve the circular debt problem had been ongoing for a year, and the new scheme marks a milestone with long-term positive impacts on the energy sector.
