By SKM
December 10, 2025
ISLAMABAD: Pakistan has successfully completed a historic Rs 659.6 billion settlement of Power Holding Limited (PHL) debts, marking the largest-ever transaction in the country’s debt capital markets, Federal Minister for Power Sardar Awais Ahmed Khan Leghari announced here on Wednesday on the social media.
The settlement comprises Rs399.6 billion redemption of Pakistan Electric Supply (PES) I & II bonds through the National Depository Mechanism (NDM) via off-market transactions and an additional Rs 259.7 billion cleared across various syndicated financing facilities.
According to the Minister, the NDM component of the transaction demonstrates the maturity and strength of Pakistan’s capital market ecosystem and its ability to manage large-scale strategic financial operations.
“This landmark transaction is a core component of the Rs1,225 billion Circular Debt Reduction Plan,” Minister Leghari stated. “It reflects strong institutional confidence in Pakistan’s ongoing economic reforms, government initiatives, and the depth of our capital and Islamic finance sectors.”
Experts say the settlement provides a significant boost to the energy sector, which has been grappling with high circular debt, liquidity constraints, and inefficiencies. By redeeming PHL obligations and restructuring financing liabilities, the government aims to enhance the financial sustainability of power distribution companies, improve investor confidence, and pave the way for broader energy sector reforms.
The Minister emphasized that the government remains committed to structural reforms in the energy sector alongside long-term fiscal stabilization. He highlighted ongoing efforts to engage with all stakeholders to accelerate reform-driven growth and secure Pakistan’s energy future.
Financial analysts view the PKR 659.6 billion transaction as a milestone, signaling that Pakistan’s capital markets are capable of supporting large-scale debt operations, a crucial factor in maintaining energy sector liquidity and stability.
With this landmark settlement, Pakistan moves a step closer to reducing circular debt, strengthening institutional credibility, and laying the groundwork for sustained energy sector reform and economic growth. Ends
