The business community is raising its voice against the financial burden repeatedly imposed on electricity consumers due to the failures of power companies. Khurram Ijaz, Secretary General of Businessmen Panel Progressive (BMPP) and former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), today urged the government to abolish the Rs. 3.23 per unit debt service surcharge, which he equated to unjustly shifting the burden of institutional weaknesses onto the public.
According to the Auditor General of Pakistan’s (AGP) audit report for 2025-26, a concerning trend has emerged of transferring the cost of failures in the electricity sector to consumers, putting pressure on both domestic and industrial sectors. Although circular debt was reduced from Rs. 2.39 trillion in June 2024 to Rs. 1.61 trillion in June 2025, Ijaz points out that this reduction was not achieved through effective reforms but through acquiring additional loans and government financial intervention.
Ijaz emphasizes that managing circular debt in this manner is merely a temporary solution, deferring the resolution of fundamental issues instead of addressing them. The audit report reveals alarming losses, with government distribution companies (DISCOs) facing Rs. 265 billion in transmission and distribution losses and Rs. 132 billion in losses due to inadequate recovery efforts during the fiscal year 2024-25. These losses significantly contribute to the continuous increase in circular debt.
This appeal by the business community pressures the government to review its approach to managing the electricity sector and take measures to protect consumers from the financial consequences of poor management and ineffective strategies.