Business
Pakistan signs ‘landmark’ circular debt deal with banks
Agreement aims to solve one of the long-standing issues that has crippled the power sector
Sep 24, 2025
Sep 24, 2025
Agreement aims to solve one of the long-standing issues that has crippled the power sector
Outlook remains stable as high capex, under-recoveries, and liquidity constraints weigh on financial metrics
IMF-backed strategy includes debt restructuring, interest waivers, and surcharge legislation to reduce the circular debt
The deal with 18 banks and CPPA is the largest financing agreement in Pakistan’s history
