Islamabad: The Spokesperson for the Power Division has clarified that the reported Rs79 billion increase in circular debt (CD) during the first quarter of FY2025-26 does not indicate a renewed upward trend, terming such impressions inaccurate and taken out of context. The spokesperson said the rise must be viewed in full perspective, noting that during the same quarter last year, circular debt had increased by Rs73 billion, yet by the end of that fiscal year, the overall stock was reduced by Rs780 billion. He said the current quarterly increase stems from seasonal and operational factors that typically affect short-term flows and are expected to reverse over the course of the year.

The spokesperson added that inefficiencies in distribution companies (DISCOs) during July-September 2025 were reduced by Rs67 billion compared to the same period last year, demonstrating the government's continued focus on operational efficiency and financial discipline in the power sector.

He further clarified that these interim, seasonal fluctuations in circular debt have no impact on consumer-end tariffs, which continue to be determined through the regular regulatory process.