Gas Sector Circular Debt Reaches Rs3.6 Trillion
Mian Nadeem | 12 September, 2026 | 07:00 PM
Virtual economic review talks with the IMF will be held in the last week of September, a report states.
ISLAMABAD (UrduPoint / Pakistan Point News – 12th Sep, 2026) : The gas sector’s circular debt has reached Rs3.6 trillion, including Rs2.1 trillion in interest and Rs1.5 trillion in principal, according to a report.
The report notes that virtual economic review talks with the IMF are scheduled for the last week of September. The Ministry of Finance will present a settlement plan for the gas sector’s circular debt to the institution.
Sources reveal a comprehensive plan has been devised to eliminate the gas sector’s Rs3.6 trillion circular debt within three years. The projected reductions are as follows:
- Rs528 billion in the first year
- Rs473 billion in the second year
- Rs433 billion in the third year
This plan encompasses several components:
- Rs840 billion reduction through dividends from gas companies.
- Rs270 billion generated through the petroleum levy.
- Rs310 billion saved by deferring additional LNG cargoes from Qatar.
- Rs15 billion through the power sector’s take-or-pay mechanism.
- Rs60 billion through full recovery of LNG costs.
Addressing a crucial concern, sources assure that the issue of markup imposed on the gas sector’s circular debt will also be resolved. However, there are apprehensions regarding potential increases in gas prices due to fully recovering LNG costs.
