Pakistan Reduces Rs. 800 Billion from Rs. 22.4 Trillion Circular Debt; Signs New Rs. 1,225 Billion Restructuring Scheme

Islamabad: Federal Minister for Energy, Sardar Awais Ahmad Khan Leghari, announced that Pakistan has successfully reduced **Rs. 800 billion** from its circular debt, which stood at **Rs. 22.4 trillion** at the beginning of the current government’s tenure.

In a video message, the minister revealed that a new **Rs. 1,225 billion circular debt reduction scheme** is being signed today, which will further assist in lowering the debt burden.

Leghari explained that until now, consumers had been paying an average **Rs. 3.5 per unit Debt Service Surcharge**, which was used solely to cover interest payments, leaving the principal debt untouched. Under the new scheme, however, the surcharge will be utilized for both **interest and principal repayments**, enabling the government to achieve the target of bringing the circular debt down to **zero within six years**.

The energy minister credited this achievement to the **vision and guidance of the Prime Minister of Pakistan**, while also praising the joint efforts of all relevant institutions that made the restructuring possible.