Revolving debt increased by Rs 79 billion in 1Q26 to Rs 1.69 trillion.

• Claims from KE alone stood at Rs 229 billion till September 2025.
• Rising debts are pushing the government to speed up reforms to limit financial leakages.
• Economists warn that the widening of the deficit could put pressure on foreign reserves.
  

Pakistan’s power sector’s revolving debt increased by Rs79 billion in the first quarter (July–September) of FY2025-26, reaching Rs1.693 trillion by the end of September. The News he said citing Power Division statistics.

The debt stock, which stood at Rs 1,614 trillion at the close of FY2024-25 in June, rose again in the first three months of the new financial year – a development that reignited concerns about inefficiencies and financial losses in the energy supply chain.

Power experts said the backlog reflects prolonged power theft, weak recoveries and structural flaws in state-run distribution companies (Discos).

Receivables from K-Electric alone amounted to Rs 229 billion by September 2025, including Rs 42 billion in capital and Rs 187 billion in margin.

Rising claims and debt accumulation have again put pressure on the government to speed up reforms and cover the financial leakages that continue to weigh on the national treasury.

The country’s goods trade deficit widened nearly 55.88 percent year-on-year in October 2025 to $3.21 billion, official data showed on Tuesday, as imports jumped and exports slipped, intensifying pressure on the country’s fragile external sector and threatening currency stability.

According to the Pakistan Bureau of Statistics (PBS), imports rose 20.18 percent to $6.06 billion, while exports fell 4.46 percent to $2.85 billion in October compared to the same month last year. The gap, while still huge, was 4.2% smaller than September’s deficit of $3.35 billion.

In the first four months (July-October) of the current financial year, the trade gap jumped 38% year-on-year to $12.58 billion. Imports during this period rose 15.1% to $23.03 billion, while exports fell 4.04% to $10.45 billion.

Economists warned that the widening deficit could squeeze foreign reserves, put pressure on the rupee and complicate external debt repayments.

The PBS data, however, interestingly showed that the services trade deficit fell by 34.3% in September 2025 to $198.5 million, compared to $302 million a year earlier. Services exports rose 20.3% to $796.7 million, while imports rose 3.17% to $995.2 million.

In the last financial year (FY25), the services trade deficit had narrowed by 15.8% to $2.62 billion, on the back of a 9.2% rise in services exports to $8.4 billion, compared to a modest 2% increase in imports to $11 billion.