<h1>Government agrees PkRs 1.2 trillion bank financing to restructure nearly PkRs 2.4 trillion power-sector circular debt</h1> A cash-strapped government signed a PkRs 1.2 trillion financing agreement with a consortium of 18 banks to restructure mounting power-sector circular debt, reported as nearly PkRs 2.4 trillion (about 2.1% of GDP). Authorities called the deal the largest restructuring in the country's history and a breakthrough to stabilize the energy supply chain, support structural reforms, and pave the way for privatisation of distribution companies and loss-reduction measures. Critics remain skeptical, noting past tariff increases, persistent theft, technical losses and disputed contracts with independent power producers that have allowed debt to accumulate despite higher consumer bills.