The power sector debt ballooned to Rs2.635 trillion between July 2023 and January 2024, a 14 percent increase from the previous year, The News reported quoting data from the Power Division.
The sector’s total debt stock was Rs2.31 trillion at the end of the fiscal year 2022-23 in June. Despite government efforts to retire some debt of Independent Power Producers (IPPs) and increase the power base tariff, the results have been discouraging. Instead of declining, the debt grew by Rs46.42 billion (or $166 million) each month.
During this period, a much-hyped drive against power theft, championed by the caretaker government, fell short of its intended impact, as evidenced by the unabated growth of circular debt. This trend indicates escalating inefficiencies in the energy system, particularly in power generation, distribution, and dues collections. in other words
