Pakistan Nears Major Financial Deal with Banks to Tackle Soaring Power Sector Debt: Energy Minister

Islamabad:Federal Minister for Energy **Awais Leghari** has announced that the government is close to finalizing a major financial agreement with **commercial banks** aimed at eliminating the **growing circular debt** in the power sector.

While unveiling a comprehensive **reform plan** for the energy sector, Minister Leghari addressed the media, stating that the debt repayment arrangement is **“almost complete”** and could be finalized **any day**. The initiative is part of a broader effort to **reduce electricity tariffs**, **enhance system efficiency**, and **accelerate the transition to clean energy**.

The minister also disclosed that the government is **reviewing agreements with Independent Power Producers (IPPs)** and has already observed a **reduction in electricity prices** as a result.

Highlighting future goals, Leghari pointed to the **integration of the Bhasha Dam into the national grid** as a major milestone, which will complement ongoing **transmission system upgrades and reforms**.

This move is seen as a critical step toward long-term energy sustainability and economic stability, as Pakistan grapples with high energy costs and persistent financial strain in the power sector.