Pakistan’s circular debt has crossed 2.4 trillion rupees, locking up capital, paralyzing power companies, and putting the entire energy supply chain under pressure. For decades, successive governments have failed to break this cycle — but now, a new 1.225 trillion rupees restructuring deal promises to change that.
In this Profit by Pakistan Today explainer, we break down what could be the largest financial restructuring plan in Pakistan’s history. The government has partnered with 18 commercial banks to consolidate decades of unpaid dues, expensive loans, and capacity payments into a single structured facility — one that aims to stabilize the power sector and restore financial discipline.
The video covers:
⚡ What is circular debt and how it ballooned to 2.4 trillion rupees
🏦 The structure of the 1.225 trillion rupees energy deal
📊 How this plan redistributes existing debt and eliminates high-interest loans
💡 The role of KIBOR-based pricing, IMF oversight, and bank guarantees
🔋 Whether this deal can truly fix Pakistan’s power sector or just delay the inevitable
With input from government documents, financial experts, and power sector insiders, this analysis explores both sides of the debate — is this the first real reform, or simply another short-term financial patch?
