According to a report released by the Ministry of Energy, Pakistan’s state-run power plants are incurring annual losses worth billions of rupees, significantly contributing to the power sector’s escalating circular debt.
The report highlights inherent inefficiencies within the business model of state-owned generation companies (GENCOs). These inefficiencies have led to increased financial losses and a deeper reliance on government support.
Jamshoro Power Company (GENCO-I) recorded a loss of Rs1.10 billion by December 31, 2024. During the same period, Central Power Generation Company (GENCO-II) posted losses of Rs3.80 billion, while GENCO-III reported a loss of Rs1.42 billion.
The report explicitly states that mounting losses, accumulating debt, and subpar plant performance are the primary factors driving the continuous rise in circular debt within the power sector.
