Pakistan’s Power Sector Circular Debt: A Persistent Challenge and Path to Resolution
(By Khalid Masood) Background and Origins Pakistan’s power sector circular debt emerged prominently around 2006 as a systemic financial malaise rooted in structural inefficiencies and policy distortions. It forms a vicious cycle: distribution companies (DISCOs) incur high transmission and distribution (T&D) losses—often exceeding 20% due to outdated infrastructure and technical faults—compounded by rampant electricity theft,…