Archive · 25 Sep 2025
Pakistan Signs PKR 1.2 Trillion Deal to Address Power Debt
Pakistan's government made a big financial deal with a group of banks.
This deal involves 1.2 trillion rupees to help fix the country's debt related to providing electricity.
This debt has grown to a huge amount, impacting the economy.
The government hopes this agreement will solve the problem of owing money to companies that produce electricity.
The deal is also meant to improve how electricity is distributed and help reduce losses.
The Prime Minister thinks this is a big step towards fixing the country's financial issues.
The government aims to sell electricity distribution companies and cut down on losses.
Pakistan signed a PKR 1.2 trillion financing agreement to address the power sector debt.
The deal is the largest restructuring deal in Pakistan's history.
The signing ceremony was held in Islamabad and witnessed virtually by the Prime Minister.
The agreement aims to resolve the circular debt crisis, which has reached PKR 2.4 trillion.
The government plans to privatise power distribution companies (DISCOs).
- Who
- Pakistan government and a consortium of banks
- What
- Signed a PKR 1.2 trillion financing deal to address power sector debt.
- When
- Thursday
- Where
- Islamabad
- Why
- To tackle the country’s circular debt crisis, which has strained the energy supply chain.
- Deal Value
- PKR 1.2 Trillion
- Parties Involved
- Pakistan government and consortium of 18 banks
- Purpose
- Address power sector debt
- Circular Debt
- PKR 2.4 trillion (2.1% of GDP)
- Signing Location
- Islamabad
- Significance
- Largest restructuring deal in Pakistan's history