Pakistan's power sector faces mounting financial challenges as circular debt surged by Rs61 billion during the fiscal year, escalating the burden to approximately Rs1.67 trillion. This persistent debt cycle reflects structural inefficiencies in electricity distribution, collection failures, and delayed government payments to power generation companies. The growing financial strain threatens infrastructure development and service quality, while creating a cascading effect on utility operations and economic stability. Addressing this crisis requires comprehensive reforms in billing systems, governance, and payment mechanisms.

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