Power Debt Crisis: Awais Leghari Blames K-Electric for Rising Circular Debt
The power debt crisis has once again drawn national attention. Federal Energy Minister Awais Leghari raised serious concerns during a press conference. He blamed delayed payments by K-Electric for worsening the situation.
According to him, unpaid electricity dues continue to strain the system. As a result, circular debt keeps rising despite ongoing reforms. However, the government now plans stronger oversight.
Unpaid Dues and Heavy Subsidies
Awais Leghari revealed that K-Electric owes Rs300 billion as of November 30, 2025. These unpaid bills have created pressure across the energy supply chain. Therefore, the impact affects both producers and consumers.
In addition, the company received over Rs600 billion in subsidies during five years. Despite this support, payment discipline remained weak. Consequently, the burden shifted to the national exchequer.
Energy Reforms and Cost Reduction
The minister highlighted major reforms in the power sector. For example, the government renegotiated agreements with Independent Power Producers. These talks helped reduce electricity prices for users.
Moreover, authorities cancelled 8,000 megawatts of costly future projects. These decisions followed merit based evaluations for the first time. As a result, Pakistan avoided long-term financial pressure.
Officials estimate savings of more than $17 billion from these steps. Such measures aim to stabilize the system sustainably. Therefore, experts see these actions as a turning point.
Surplus Power and Contract Clarification
Pakistan currently has 8,700 megawatts of surplus electricity available. However, distribution challenges still limit effective use. The government continues to absorb transmission losses nationwide.
Awais Leghari also rejected claims about ignored take or pay contracts. He clarified that reviews did take place. This explanation counters misinformation around energy agreements.
Overall, reforms target accountability and transparency. The power debt crisis remains serious, yet corrective steps show progress. Inclusive policies now focus on long term stability and fair pricing.
