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Pakistan’s Power Circular Debt Rises

Pakistan’s Power Circular Debt Rises by Rs61 Billion After Budget Cut

Pakistan’s power sector circular debt was increased by Rs61 billion to Rs1.675 trillion by June 30, compared with Rs1.614 trillion a year earlier. The Ministry of Finance was blamed by the Power Division for reducing the sector’s FY26 budget allocation by Rs98 billion. A total of Rs893 billion had initially been allocated. It was claimed that the circular debt could have been reduced to Rs1.577 trillion if the full budgeted payment had been released.

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Budget

Punjab, Sindh Face 22% Rabi Water Shortage

The Indus River System Authority’s Advisory Committee approved a 22% water shortage for Punjab and Sindh during the Rabi season, from October 1, 2026, to March 31, 2027. Anticipated provincial withdrawals total 29.183 million acre-feet (MAF), slightly above the 10-year average of 28.73 MAF. Reviewing Kharif 2026, the committee recorded inflows of 95.44 MAF—8% below projections, 7% below the 10-year average and 22% below last year. Provinces received requested supplies from April 1 to May 15, 2026, and subsequently during late Kharif.

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Pakistan Pavilion Opens in Jeddah

The Trade Development Authority of Pakistan (TDAP) has inaugurated the Pakistan Pavilion at The Saudi Food Show 2026 in Jeddah. According to TDAP’s event details, its largest delegation to the show comprises 30 Pakistani companies, including 14 rice exporters. Exhibitors also represent pulses, grains, beverages, meat, poultry, flavours and packaging machinery. The Commercial Section has invited Saudi buyers for targeted business meetings and a networking dinner, creating opportunities for Pakistani food exporters to build trade links. The show is being held at Jeddah Superdome from September 27 to 29.

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Water Shortage Threatens Pakistan’s Wheat Crop

Pakistan faces an estimated 25% water shortage as the Rabi season begins, raising concerns for the next wheat crop and food security. The previous season had no reported water shortage, yet wheat output was estimated at 27.5 million tonnes, below the 29.7 million tonne target and 31.9 million tonne consumption requirement. The government has ordered one million tonnes of wheat imports, with 750,000 tonnes scheduled for delivery in November. Reduced water availability could add pressure on farmers already affected by changes in wheat policy.

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