Pakistan, IMF hold talks on gas sector debt
Published On 21 Jul, 2026
According to sources, the talks focused on a proposed settlement plan to reduce the gas sector’s circular debt by around Rs1.7 trillion. However, no agreement was reached between the two sides during the virtual meeting.
Sources said the IMF has proposed new conditions for the settlement plan, including the requirement that losses incurred by gas companies be formally recorded in their financial books.
The IMF has suggested that recoveries owed to gas companies should be treated as losses rather than outstanding receivables. After recording these losses, the companies should be recapitalized, according to sources.
Sources further stated that implementing the IMF’s conditions could potentially lead to a decline in the share value of gas companies.
However, officials from the Petroleum Division are reportedly reluctant to accept the IMF’s proposed conditions for the circular debt settlement plan.
The two sides are expected to hold further discussions in September to finalize the settlement strategy. Sources said that the revised plan may be prepared in line with the IMF’s recommendations.
