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