The Ministry of Finance on Thursday welcomed the successful resolution of Rs1.225 trillion power sector circular debt, terming it a decisive step toward restoring fiscal discipline, investor confidence and sustainability in the energy sector.
\nThe Ministry said the landmark restructuring was achieved through a historic joint effort led by the Prime Minister\u2019s Task Force on Power in coordination with the Ministry of Energy, the State Bank of Pakistan, the Pakistan Banks Association (PBA) and 18 partner banks.
\n\u201cThis achievement reflects the strength of teamwork across institutions united to address one of the most chronic challenges of Pakistan\u2019s energy sector,\u201d said press release issued by finance ministry.
\nAccording to the statement, the effort was led by the PM\u2019s Task Force Chaired by the Minister of Power, Sardar Awais Ahmad Khan Leghari, firmly supported by the Minister of Finance and Revenue, Senator Muhammad Aurangzeb, Advisor to PM on Privatisation, Muhammad Ali (previously SAPM on Power), National Coordinator, Lt. General Muhammad Zafar Iqbal, Governor State Bank of Pakistan, Jameel Ahmed, Secretary Finance, Imdadullah Bosal and all the dedicated members of the Task Force, with the strong support of PBA and 18 Banks.<\/p>\n
This landmark restructuring was achieved through strong collaboration, where the Task Force and government institutions provided policy leadership and execution, while the banking sector through PBA, actively supported by the SBP, anchored and mobilized financing with confidence in the energy sector\u2019s future.
\nThe agreement includes the restructuring of Rs. 660 billion in existing loans and Rs. 565 billion in fresh financing to clear overdue payments to power producers.
\nImportantly, this debt workout introduces no new burden on consumers, as repayments will be serviced through the already levied surcharge of Rs. 3.23 per unit. The structure also unlocks Rs. 660 billion in sovereign guarantees, channeling liquidity toward agriculture, SMEs, housing, education, and healthcare.
\nCommenting on this achievement, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb underscored that the resolution marks a decisive step toward restoring fiscal discipline, investor confidence, and energy sector sustainability.
\nHighlighting the broader significance of the achievement, the Finance Minister said this milestone was a testament to the power of collective leadership and effective teamwork, underpinned by technical excellence, inter-institutional coordination, and public-private collaboration.
\nHe added that the success sets a precedent for addressing Pakistan\u2019s structural challenges with innovation, unity, and resolve.
\nHe further emphasized that this accomplishment signals the government\u2019s unwavering commitment to resolving long-standing energy bottlenecks and the government\u2019s ability to balance financial stability with energy sector reforms.
\nImportantly, the release of Rs. 660 billion in sovereign guarantees through this arrangement will channel much-needed liquidity into priority sectors such as agriculture, SMEs, housing, education, and healthcare.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Ministry of Finance on Thursday welcomed the successful resolution of Rs1.225 trillion power sector circular debt, terming it a decisive step toward restoring fiscal discipline, investor confidence and sustainability in the energy sector. The Ministry said the landmark restructuring was achieved through a historic joint effort led by the Prime Minister\u2019s Task Force on […]<\/p>\n","protected":false},"author":2,"featured_media":456359,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-504913","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n