Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
Domestic Failures
Author Note
Waqas Faraz is a CA Finalist affiliated with the Institute of Chartered Accountants of Pakistan.
The author is currently working as a senior Audit Associate at UHY International Hassan Naeem
& Co, Lahore, Pakistan.
Correspondence concerning this article should be addressed to:
E-mail: waqasfaraz.uhy@gmail.com
Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
Domestic Failures
Disclaimer
This research paper is an academic and policy-oriented study intended for educational, analytical,
and informational purposes only. The views, interpretations, and recommendations expressed
herein are those of the author and do not necessarily reflect the official position or policy of any
government institution, regulatory authority, or affiliated organization.
While every effort has been made to ensure the accuracy of the data, sources, and analyses
presented, the author assumes no responsibility for any errors, omissions, or consequences arising
from the use of this information. References to government reports, regulatory disclosures, or
third-party data are cited in good faith and solely for scholarly critique and comparative analysis.
This document is not intended to serve as financial, legal, or policy advice. Readers are encouraged
to independently verify all information and consult appropriate experts before making decisions
based on the content of this paper.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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Acknowledgment
This research paper would not have reached its present form without the critical guidance and
support of several individuals. I am especially grateful to Muhammad Afzal, ACA, Financial
Advisor at J & G Group, KSA and Khyzer Tahir, Assistant Manager at PKF F.R.A.N.T.S, PK for
their thorough review, constructive feedback, and valuable insights throughout the course of this
study.
I also wish to acknowledge the contribution of those who provided data access, editorial input, and
policy references, as well as the organizations whose reports and publications formed the backbone
of this research.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
Domestic Failures
Abstract
The persistent circular debt crisis in Pakistan’s energy sector, now exceeding Rs. 5 trillion,
continues to constrain economic growth, fiscal sustainability, and energy reliability. This research
investigates the structural inefficiencies, pricing distortions, and financial mismanagement that
have contributed to the chronic buildup of circular debt in the power and gas value chains
Drawing on both domestic fiscal policy and international practices, the report evaluates how
countries like India and Turkey, have successfully addressed similar circular debt issues through
a combination of tariff rationalization, energy market liberalization, subsidy reform, and private
sector participation. Comparative insights offer lessons for Pakistan in terms of improving
governance, aligning consumer tariffs with economic cost, and implementing sustainable longterm strategies.
We propose an integrated roadmap: privatize DISCOs under clear performance contracts;
institutionalize automatic quarterly and multi-year tariff frameworks; replace blanket subsidies
with targeted direct benefit transfers; empower NEPRA with true autonomy; operationalize the
Competitive Trading Bilateral Contract Market (CTBCM); and accelerate renewable energy
deployment via competitive auctions and smart-grid investments. Together, these measures aim to
resolve liquidity gaps, disrupt the circular debt cycle, and build a resilient, sustainable power sector.
Keywords: Circular Debt, Energy Sector Reform, Competitive Trading Bilateral Contract Market
(CTBCM), Fiscal Policy, Tariff Rationalization, Energy Governance, Public Finance, Pakistan,
India, Turkey
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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Table of Contents
I. Introduction ..................................................................................................................... 6
II. Pakistan’s Energy Sector ................................................................................................ 7
III. Causes of Circular Debt .............................................................................................. 10
IV. Global Lessons ............................................................................................................ 14
V. Proposed Solutions— A Holistic and Sustainable Framework to Resolve Circular Debt
in Pakistan ......................................................................................................................... 15
VI. Conclusion .................................................................................................................. 18
References ......................................................................................................................... 19
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
Domestic Failures
I. Introduction
Circular debt refers to a chain of unpaid obligations where one entity’s failure to fulfill its payment
responsibilities creates a domino effect across other entities in the value chain. In simpler terms, if
Entity A owes money to Entity B, B owes to C, and C to D, and none of them clear their dues, a
cycle of unresolved liabilities is formed — hence, the term "circular" debt.
In the context of Pakistan's energy sector, this pattern has become deeply entrenched. Various
entities across the energy supply chain — from power producers to distributors and fuel suppliers
— owe substantial sums to each other. When one entity experiences a liquidity crunch and fails to
make payments, it adversely affects the working capital and receivables of the next. This ongoing
cycle of non-payment disrupts financial flows, deteriorates trust within the system, and hampers
operational efficiency.
The primary objective of this paper is to understand the phenomenon of circular debt in Pakistan’s
energy sector—its root causes, structural weaknesses, and the broader economic impact. It seeks
to analyze why circular debt arises and persists, and to explore how other countries, such as Turkey
and India, have successfully addressed similar challenges through targeted reforms and policy
interventions.
The study is divided into seven sections for clarity and logical flow:






Section 1: Introduction — Defines circular debt and introduces the context of the energy
sector in Pakistan.
Section 2: Understanding Pakistan’s Energy Sector —an overview of the energy value
chain, key players, and Payment Process.
Section 3: Root Causes of Circular Debt —examines pricing distortions, governance
failures, and financial mismanagement.
Section 4: Global Lessons —highlights how countries like India and Turkey tackled
circular debt through privatization, tariff rationalization, and governance reforms.
Section 5: Proposed Solutions—offers practical and sustainable recommendations for
Pakistan, including privatization, fiscal discipline, and tariff alignment.
Section 6: Conclusion —summarizes findings and outlines the need for long-term
structural reforms.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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II. Pakistan’s Energy Sector
The key players in the energy sector of Pakistan are as follows.

Primary Energy Suppliers
These include exploration firms, gas providers, oil refineries, and marketing companies
that extract, refine, and supply primary fuel inputs (gas, oil, petroleum) for electricity
generation in Pakistan.

Generation and Distribution Suppliers
This segment covers power generation by independent producers and governmentowned GENCOs/WAPDA, along with transmission and distribution by NTDC/CPPA,
K-Electric, and DISCOs responsible for delivering electricity to end users.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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
End Consumers
The final consumers of electricity, including households, industrial users, government
departments, and areas like FATA, who are affected by both the pricing and reliability
of power supply.
Illustration How Circular Debt Emerges
As discussed above circular debt emerges due to blockage of cash within the energy eco-system.
To understand the magnitude of circular debt, the following illustration how a single default at the
consumer level escalates into a multi-layered financial crisis affecting multiple entities across the
energy value chain, including generation companies (GENCOs), fuel suppliers, refineries, and
exploration firms.
1. Consumer Non-Payment
 A household in the Federally Administered Tribal Areas (FATA) receives a monthly
electricity bill of Rs. 5,000.
 Due to inadequate enforcement and weak recovery mechanisms, the consumer fails to
make the payment.
 As a result, the local distribution company (PESCO) experiences a direct revenue loss
of Rs. 5,000, weakening its liquidity position.
2. DISCO’S INABILITY TO REMIT TO PEPCO
 PESCO is obligated to remit Rs. 8,000 to PEPCO, which includes
 Rs. 5,000: Cost of purchased electricity.
 Rs. 3,000: Tariff differential subsidy (the gap between cost and consumer tariff).
 Due to the unpaid bill and the pending subsidy from the government, PESCO defaults
on this payment.
 PEPCO, therefore, lacks the liquidity to settle its obligations with power producers.
3. Power Producers Face Cash Flow Disruption
 PEPCO’s default trickles upstream, disrupting payments to public and private
generation companies:
 GENCO is owed Rs. 3,000 for thermal power production but is unable to pay SNGPL
for the natural gas it uses.
 WAPDA Hydel is owed Rs. 1,000 for hydropower generation but cannot allocate
funds for dam maintenance, jeopardizing future power capacity.
 Independent Power Producers (e.g., Hubco) are owed Rs. 4,000 and, in turn, default
on payments to their furnace oil supplier, PSO.
4. Fuel Suppliers and Gas Distributors Affected
The financial strain deepens as fuel supply companies face their own defaults:
 PSO, owed Rs. 4,000 by Hubco, is unable to clear its dues to PARCO, the refinery
supplying furnace oil.
 SNGPL, owed Rs. 2,000 by GENCO, cannot pay OGDCL, the upstream gas
producer.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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5. Refineries and Exploration Hit
 PARCO, deprived of Rs. 3,000 in payments from PSO, struggles to pay OGDCL for
crude oil procurement.
 OGDCL, now facing a cumulative receivable shortfall of Rs. 5,000 (Rs. 2,000 from
SNGPL and Rs. 3,000 from PARCO), is forced to scale back its exploration and
production activities — undermining the country's long-term energy sustainability.
6. Government Intervention: Bridging the Gap
To prevent a total supply chain collapse, the Government of Pakistan steps in through
subsidies and borrowing:
 Subsidy Injection: The government allocates Rs. 3,000 to PEPCO to partially cover the
tariff differential.
 Borrowing: An additional Rs. 5,000 is borrowed from commercial banks to finance
urgent payments to OGDCL and PARCO.
Total fiscal burden incurred: Rs. 13,000 (5,000(Customer default) + 3,000 (Tariff
differential) + 5,000 (Borrowing)), arising from an initial Rs. 5,000 consumer-level
default.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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III. Causes of Circular Debt
Circular debt in energy sector—amounting to Rs. 5.422 trillion as of June 2024—has emerged as
a critical economic challenge. This persistent issue stems from a combination of systemic
inefficiencies, policy flaws, and financial mismanagement across the entire energy value chain.
Below are the major causes of circular debt:
a. Operational Causes
i.
High Transmission & Distribution Losses
Transmission and Distribution losses remain one of the most significant operational
contributors to circular debt in Pakistan. Despite NEPRA setting allowable loss limits
for each DISCO, actual losses have consistently exceeded those benchmarks, resulting
in a heavy financial burden on the power sector.
 Massive Surge in Financial Impact
The total financial impact of excess T&D losses has increased alarmingly from Rs.
51.89 billion in FY 2019-20 to Rs. 276.35 billion in FY 2023-24, according to
NEPRA’s latest reports. This nearly 433% rise indicates a persistent and worsening
inefficiency within the system.
 Worst Performing Distribution Companies (DISCOs)
Below are the worst performers as per NEPRA State of industry report 2024.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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ii.
Proper Billing and recovery performance
The consistent shortfall in recoveries by DISCOs and KE continues to be a critical
operational contributor to the ballooning circular debt in Pakistan’s power sector.
KE has experienced a steady decline in recovery rates:
 FY 2021-22: 96.69%
 FY 2022-23: 92.76%
 FY 2023-24: 91.54%
This declining trend raises alarms about KE’s collection efficiency and reflects deeper
structural issues.
On the other hand, some DISCOs have reportedly engaged in overbilling practices to
artificially reduce reported T&D losses. While this may reflect a lower technical loss
figure, it inflates the amount billed to consumers, which remains unrecovered due to its
unrealistic nature—thus exacerbating the actual recovery gap and adding up to circular
debt.
iii.
Inefficiencies of Transmission System
The under-utilization of transmission infrastructure presents a significant operational
inefficiency within Pakistan’s power sector, contributing indirectly to the escalation of
circular debt. Despite having substantial transmission capacity, the National
Transmission and Dispatch Company (NTDC) reported a sharp rise in under-utilized
transformers and lines between FY 2022-23 and FY 2023-24, indicating systemic
issues in demand forecasting and load optimization. This inefficiency leads to higher
per-unit transmission costs as fixed costs are spread over a reduced electricity volume,
ultimately burdening end consumers and limiting reinvestment capacity. Addressing
this challenge through better system planning, real-time grid management, and
improved coordination with distribution and generation companies is vital for
enhancing
financial
sustainability
and
operational
efficiency.
iv.
The Burden of Capacity Payments
Capacity payments to Independent Power Producers (IPPs) have emerged as a critical
financial burden in Pakistan’s power sector, significantly contributing to the
accumulation of circular debt. These payments are made to IPPs regardless of actual
electricity generation, under long-term Power Purchase Agreements (PPAs) that
guarantee a fixed return on investment. As demand stagnates or declines, a growing
portion of the total cost is attributed to capacity charges rather than energy consumed,
leading to underutilized generation assets and inflated consumer tariffs. In FY 2023–
24 alone, capacity payments reportedly crossed PKR 2 trillion, with nearly 60–70% of
total payments made to IPPs being fixed in nature. This model, while initially designed
to attract investment, has now strained the sector’s financial viability. Urgent reforms
in contract renegotiations, demand forecasting, and alignment of generation with actual
needs are essential to mitigate the long-term fiscal impact of these capacity obligations.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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b. Leadership and Governance Issues
Weak leadership and poor governance structures have significantly contributed to the
worsening circular debt in Pakistan’s power sector. The lack of strategic oversight, delayed
decision-making, and institutional inertia have impeded necessary reforms in the sector.
Key appointments in regulatory bodies and distribution companies are often politically
influenced, undermining merit and accountability.
c. Political Interference
According to NEPRA’s State of Industry Report 2024, recovery shortfalls and operational
inefficiencies are exacerbated by a lack of accountability and frequent changes in
leadership, driven by political agendas rather than performance metrics. Moreover, the
World Bank (2023) has emphasized that depoliticizing energy sector governance is crucial
to reducing fiscal burden and restoring investor confidence. Unless structural reforms are
introduced to ensure institutional autonomy and transparency, the power sector will remain
vulnerable to political cycles, undermining long-term stability and reform efforts.
d. Financial Aspects
The financial dimensions of Pakistan’s circular debt crisis are critical and multifaceted.
One of the key contributors is the delayed payments to Independent Power Producers
(IPPs) and fuel suppliers, which disrupts the liquidity flow and discourages further private
investment in the energy sector. Additionally, inefficient subsidy payment mechanisms
create prolonged financial gaps between the cost of electricity and government
reimbursements, leading to cash shortfalls. Pakistan’s heavy reliance on imported fuel not
only exposes the energy sector to global price shocks but also exacerbates the trade deficit,
further straining the economy. Weak balance sheets of DISCOs (Distribution
Companies)—characterized by low recoveries, high losses, and limited creditworthiness—
undermine their ability to finance operations or invest in infrastructure upgrades. Lastly,
the rising cost of servicing circular debt has placed a growing burden on public finances,
diverting resources from other critical development sectors and increasing fiscal stress.
Addressing these financial shortcomings is imperative for ensuring the long-term
sustainability and resilience of the power sector.
e. Other Aspects
Beyond governance, financial, and political drivers, several external and structural issues
contribute significantly to the circular debt crisis in Pakistan’s power sector. Underutilization of transmission infrastructure is a key inefficiency; despite having sufficient
capacity, delayed expansion, low demand growth, and planning mismatches have led to
rising fixed costs per unit. For instance, in FY 2023–24, NTDC reported 53 under-utilized
500 kV transformers and 49 under-utilized 220 kV transmission lines, reflecting idle capital
and inefficient resource allocation. Moreover, lack of data transparency, regulatory
weaknesses, and misaligned demand-supply forecasts continue to affect sectoral planning.
Technological obsolescence in metering and billing systems, coupled with limited
automation, further contributes to poor recoveries and untraceable losses. Additionally, the
social acceptance of electricity theft, especially in high-loss areas, points to deeper
behavioral and enforcement issues. These structural inefficiencies, unless addressed
through investment in modernization, smart grid deployment, and public awareness, will
continue to burden the power system and exacerbate the circular debt problem.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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IV. Global Lessons
1) Turkey’s Power Sector Reforms
 Turkey offers a compelling case study of how strategic reforms in the power sector
can resolve chronic inefficiencies and mitigate the risk of circular debt. In the early
2000s, Turkey faced challenges similar to those currently seen in Pakistan, including
non-cost-reflective tariffs, state-dominated electricity utilities, and mounting payment
arrears. However, a well-orchestrated reform program enabled Turkey to transition
from a financially stressed, state-run power system to a more efficient, market-driven,
and financially viable energy sector.
 A cornerstone of Turkey’s reform was the unbundling of the state utility TEK into
separate entities for generation (EUAS), transmission (TEIAS), and distribution. This
separation clarified financial responsibilities and enhanced transparency across the
energy value chain. Most notably, all electricity distribution companies were
privatized between 2008 and 2013, under performance-based contracts. Private
operators were held accountable for reducing technical and commercial losses,
improving billing and collections, and investing in infrastructure upgrades. This
reduced the fiscal burden on the government and improved operational efficiency.
 Turkey also adopted a cost-reflective tariff regime supported by automatic quarterly
adjustments, allowing changes in global fuel prices and currency fluctuations to be
passed on to consumers in a timely and transparent manner. Unlike Pakistan, where
untargeted subsidies create large tariff gaps and strain public finances, Turkey focused
on targeted subsidies to protect vulnerable consumers while ensuring the financial
viability of utilities. The Energy Market Regulatory Authority (EMRA) was
empowered as an independent regulator to oversee market conduct, ensure fair
competition, and maintain investor confidence.
 Another critical component was the establishment of a competitive wholesale
electricity market, including day-ahead markets and balancing mechanisms. This
encouraged competition in power procurement and reduced reliance on expensive,
inflexible long-term capacity payment contracts.
2) India’s Power Sector Reforms
India’s approach to tackling circular debt in its power sector has evolved through two
major reform programs: the Ujwal DISCOM Assurance Yojana (UDAY) and the
Revamped Distribution Sector Scheme (RDSS). Launched in 2015, UDAY sought to
resolve the financial distress of state-owned DISCOMs through a combination of debt
restructuring, operational efficiency targets, and tariff rationalization. Under the
scheme, 75% of DISCOM debt was taken over by respective state governments, while
utilities were held accountable for reducing technical and commercial losses and
closing the cost-revenue gap. Although UDAY provided initial fiscal relief and
liquidity support, it lacked stringent enforcement mechanisms, which led to stagnation
in reforms post-2018. Recognizing these gaps, India introduced RDSS in 2021—a
performance-based successor program that links financial assistance to clearly defined
outcomes, including Aggregate Technical and Commercial (AT&C) losses reduction,
smart metering rollout, and digital monitoring of DISCOM performance. Together,
these reforms reflect India’s shift toward a more accountability-driven model, where
financial support is conditioned on measurable operational improvements.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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V. Proposed Solutions— A Holistic and Sustainable Framework to Resolve Circular Debt in
Pakistan
Pakistan’s power sector has reached a critical tipping point. The circular debt—driven by systemic
inefficiencies, financial mismanagement, and a weak regulatory framework—has grown
unsustainably, threatening energy security and economic stability. Addressing this crisis requires
a multi-pronged reform agenda that blends financial restructuring, institutional reform, market
development, and a decisive shift toward sustainable energy sources.
1. Privatization of Distribution Companies (DISCOs) through Performance-Based
Models
Public sector DISCOs remain at the heart of Pakistan’s circular debt problem,
characterized by poor recovery rates, high losses, and weak accountability. A phased,
transparent privatization program must be implemented with:
 Performance-based contracts to ensure loss reduction, improved billing, and better
service delivery.
 Regulatory oversight to protect consumers and enforce contractual obligations.
 Private investment incentives for metering, digital systems, and loss reduction
technologies.
Learning from Turkey
All DISCOs were privatized between 2008–2013, under performance-linked
frameworks. Post-privatization, recovery rates improved and distribution losses
declined significantly.
2. Implementation of a Cost-Reflective, Automatic Tariff Adjustment Mechanism
To ensure financial viability across the power supply chain:
 Quarterly tariff adjustments must be institutionalized by NEPRA to reflect changes in
fuel prices, exchange rates, and capacity charges.
 Remove political delays in tariff notifications to prevent subsidy backlogs.
 Introduce multi-year tariff frameworks (MYTFs) to reduce uncertainty for investors
and improve planning.
India’s Approach
Under UDAY and RDSS, tariff-setting timelines were tightened and revenue gaps
(ACS–ARR) reduced significantly through consistent revisions.
3. Targeted Subsidy Reform and Fiscal Responsibility
The existing subsidy structure in Pakistan is broad and inefficient, placing a heavy
burden on public finances. The reform must focus on:
 Phasing out untargeted subsidies and introducing means-tested, digitally disbursed
direct benefit transfers (DBTs) for low-income consumers.
 Publishing a transparent subsidy calendar for predictable fiscal planning.
 Shifting subsidies to budget allocations, rather than tariff distortions, to maintain
market efficiency.
Turkey’s Example
Turkey’s energy pricing is mostly market-based, with limited government interference
and minimal fiscal burden from electricity subsidies.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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4. Strengthening Regulatory and Institutional Governance
To restore investor confidence and enforce discipline in the sector:
 Enhance NEPRA’s autonomy, allowing it to take binding actions without political
interference.
 Mandate real-time reporting by DISCOs and power sector entities on performance,
losses, and payments.
 Establish a unified energy sector dashboard to track progress on KPIs like recovery,
losses, and subsidy flows.
India’s RDSS model requires real-time, feeder-level monitoring, enabling better
decision-making and accountability.
5. Development of a Competitive Wholesale Power Market
Pakistan must move from a centralized, single-buyer model (CPPA-G) to a liberalized
market framework:
 Accelerate CTBCM implementation to allow direct contracts between generators and
large consumers.
 Encourage bilateral trading, spot market development, and power exchanges.
 Restructure IPP contracts, prioritizing competitive procurement, especially for new
capacity additions.
Turkey’s Market Transition
The establishment of a balancing market and spot trading in Turkey ensured transparent
pricing and efficient dispatch of power, minimizing idle capacity payments.
6. Integration of Sustainable and Renewable Energy Sources
Long-term circular debt mitigation also requires transitioning toward affordable, clean,
and domestically available energy sources to reduce fuel import dependence and
generation costs:
 Accelerate renewable energy (RE) deployment through competitive auctions for solar,
wind, and hybrid solutions.
 Implement the Alternative & Renewable Energy Policy 2019 (ARE-2019) in full, with
clear targets and transparent procurement.
 Incentivize private sector investment in distributed generation (e.g., rooftop solar), net
metering, and off-grid solutions.
 Develop local manufacturing capacity for solar panels, wind turbines, and storage
systems to reduce forex pressure.
India’s Transition
Through auctions under the Solar Energy Corporation of India (SECI), India brought
down solar prices to some of the lowest globally, reducing reliance on fossil fuels and
mitigating long-term generation costs.
Turkey’s Renewable Push
Through its Renewable Energy Resource Zone (YEKA) model, Turkey introduced
large-scale competitive bidding and long-term PPA guarantees to boost clean energy
without burdening public finances.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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7. Investment in Grid Infrastructure and Smart Technologies
Reducing technical losses and improving system efficiency require investments in:
 Smart metering and billing automation
 Feeder Segregation and Loss Mapping
 SCADA Systems for Transmission Control
 Energy Storage and Grid Integration for Variable Renewable Energy
These technologies are crucial to support a decentralized and clean energy future while
curbing losses and theft.
8. Incorporating Subsidy into the Fiscal Budget
A critical reform in addressing Pakistan's circular debt is the transparent integration of
power sector subsidies into the federal fiscal budget. Currently, delays and underprovisioning of subsidies—particularly the difference between cost-reflective tariffs
and politically set consumer tariffs—create liquidity gaps across the value chain, which
accumulate into circular debt. To prevent this, all electricity-related subsidies, including
tariff differential subsidies (TDS) and agricultural or industrial support schemes, must
be fully accounted for in the annual federal and provincial budgets. Budgetary
allocations should be based on realistic consumption forecasts, linked to NEPRAapproved tariff structures, and released on a predictable and time-bound schedule.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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VI. Conclusion
In conclusion, resolving the circular debt crisis will not be achieved through incremental fixes or
temporary financial injections. It demands a comprehensive, coordinated, and politically supported
transformation, structural reform, regulatory discipline, and sustainable energy practices.—
anchored in transparency, accountability, and sustainability. By adopting international best
practices and tailoring them to the local context, Pakistan can chart a new course toward a resilient,
efficient, and inclusive power sector that supports long-term economic growth, energy security,
and social equity.
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Reforming Pakistan’s Energy Circular Debt: A Comparative Study of Global Solutions and
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References
State of Industry Report 2024 https://nepra.org.pk/
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