Govt to sign financing facility agreement today for reducing power sector’s circular debt
The government is set to hold a signing ceremony today for a financing facility agreement to reduce the circular debt in the power sector, according to the Prime Minister’s Office (PMO). A letter from the Central Power Purchasing Agency to all banks and power sector entities invited their chief executive officers and heads to attend the event. It said the event will be held at the PMO and PM Shehbaz Sharif will also virtually address the event as he is currently in New York for the UN General Assembly session. Pakistan’s debt burden has become the defining constraint of its fiscal and economic future. According to data released by the State Bank of Pakistan, the total government debt (excluding the International Monetary Fund) increased from Rs69 trillion in June 2024 to Rs78tr by June 2025. The public debt (including the IMF debt) increased to Rs80.5tr from Rs71.2tr in June 2024. Both the numbers understate the full level of the government’s indebtedness. Developments suggest ...