The Power Division has strongly challenged a recent report issued by the National Electric Power Regulatory Authority, arguing that the data presented does not accurately reflect the financial and operational improvements achieved during FY 2024-25.
Officials maintained that the published assessment overlooks key reforms undertaken by power Distribution Companies (DISCOs). They described the regulator’s findings as incomplete and lacking proper contextual analysis.
According to the Power Division, circular debt declined significantly over the last fiscal year. The total stock reportedly fell by Rs. 780 billion, decreasing from Rs. 2,393 billion in FY 2024 to Rs. 1,614 billion in FY 2025.
Authorities stated that DISCOs played a direct and measurable role in this reduction. Improved operational discipline, better billing accuracy, and stricter action against defaulters collectively contributed Rs. 193 billion to lowering the debt burden.
Officials further highlighted that negotiations with power producers resulted in Late Payment Interest (LPI) waivers amounting to Rs. 260 billion. These discussions, they claimed, were instrumental in easing financial pressure on the power sector.
In addition, improved macroeconomic indicators contributed more than Rs. 300 billion toward stabilizing the circular debt position. Government representatives stressed that these combined efforts demonstrate a clear turnaround in sector performance.
The Power Division emphasized that performance metrics for FY 2024-25 reflect structural improvements rather than temporary adjustments. Enhanced recovery ratios and tighter financial management were cited as evidence of sustained reform.
The disagreement underscores ongoing tensions between regulatory oversight and executive administration in Pakistan’s energy sector. While NEPRA’s mandate includes transparent reporting and independent evaluation, the Power Division insists that sectoral progress must be assessed in full context.
Circular debt remains one of the most pressing challenges facing Pakistan’s power sector. Although the reported reduction signals progress, long-term sustainability will depend on continued reforms, efficient governance, and financial discipline across the value chain.
The debate between the Power Division and NEPRA is likely to prompt further clarification in upcoming policy discussions. Stakeholders across the energy sector will closely watch how both institutions reconcile their assessments in the interest of transparency and accountability.