Govt seals record Rs659.6bn power debt settlement
“Islamabad has executed a Rs659.6bn settlement to retire power-sector liabilities.”
Key points
- Islamabad has executed a Rs659.6bn settlement to retire power-sector liabilities.
- Officials say the record transaction bolsters liquidity and underpins the circular debt reduction plan.
- Analysts view it as supportive of wider energy and fiscal reforms.
Pakistan has completed a landmark Rs659.6 billion settlement of power-sector liabilities, the largest transaction of its kind in the domestic debt market, the power minister said. The deal includes Rs399.6 billion redemption of Pakistan Energy Sukuk (PES) I & II through the negotiated deal market and Rs259.7 billion cleared across various syndicated financing facilities.
The minister called the operation a core part of the Rs1.225 trillion Circular Debt Reduction Plan and said it demonstrates greater depth and maturity in local capital markets. Officials argue the move will ease liquidity pressures on the energy chain and help restore investor confidence.
Analysts quoted in the report say the settlement supports broader energy reforms and complements fiscal stabilisation efforts under Pakistan’s ongoing programme with the International Monetary Fund. The government maintains it will continue structural changes in the sector to counter persistently high circular debt, which has stemmed from distribution losses, delayed tariff adjustments and subsidy gaps.
Corrections & clarifications
Spot an inaccuracy or need more detail? Email connect@newsnexus24.com. Significant updates are timestamped above.
