Karachi Division

Karachi | ReNews Pakistan
The government’s claim of reducing circular debt in the power sector has been termed misleading, as a new report says the debt has increased instead of declining during the first 10 months of fiscal year 2026.
According to a report issued by the Economic Policy and Business Development Think Tank, refinancing and recycling have not actually reduced circular debt. Instead, the debt has only been reshaped and temporarily pushed back through financial adjustments.
The report states that during the first 10 months of fiscal year 2026, new circular debt in the power sector increased by Rs 240 billion, taking the total to Rs 1,854 billion.
It further says that government institutions have shown a 23 percent reduction in the overall circular debt of the power sector, but this reduction appears to be the result of financial adjustment and refinancing rather than a real solution to the structural problem.
According to the think tank, expensive power purchase agreements, heavy capacity charges and the weak performance of electricity distribution companies remain the main reasons behind the power sector deficit.
The report added that finance adjustments are being used to temporarily suppress circular debt, but the continued rise in new debt shows that the financial crisis in the power sector remains unresolved.
Experts say sustainable reduction in circular debt will not be possible unless the government addresses power generation costs, capacity payments, line losses, bill recovery and governance issues in distribution companies.

Karachi: [ReNews Pakistan]
The Karachi administration has launched an emergency operation to evacuate hundreds of unsafe buildings across the city as part of a comprehensive safety plan ahead of the upcoming monsoon season. The move is aimed at preventing loss of life and property caused by the collapse of aging and structurally compromised buildings during heavy rainfall.
The decision was taken following a detailed briefing by the Sindh Building Control Authority (SBCA) to Karachi Commissioner Hassan Naqvi, who directed all relevant departments to immediately implement precautionary measures in vulnerable areas.
According to the SBCA, a total of 584 buildings across Karachi have been declared dangerous due to their deteriorating structural condition. Of these, 59 buildings have been categorized as highly dangerous, requiring immediate evacuation because they pose an imminent risk of collapse. The list also includes 29 heritage buildings, many of which have suffered decades of neglect and require urgent conservation alongside public safety measures.
District South has emerged as the most vulnerable area, accounting for 442 unsafe buildings, making it the city's largest concentration of dangerous structures. Other affected districts include District Central with 73 buildings, Keamari with 28, Korangi with 18, and District East with 16 buildings identified as unsafe.
The Karachi administration has instructed the SBCA to issue evacuation notices without delay and place prominent public warning signs on all identified buildings to alert residents and passersby about the potential danger.
Commissioner Hassan Naqvi stressed that protecting human life remains the administration's highest priority. He said buildings found to be beyond repair will be demolished after technical evaluations to eliminate the risk of collapse during the monsoon season.
Authorities have also warned that if occupants refuse to vacate highly dangerous buildings despite official notices, the government will seek assistance from utility providers to disconnect gas, electricity, and water supplies to enforce evacuation orders.
Officials believe these preventive measures are essential as Karachi has repeatedly witnessed building collapses during periods of intense rainfall, resulting in fatalities, injuries, and significant property damage. The administration has urged residents living in unsafe structures to cooperate with authorities and relocate immediately to avoid potential tragedies during the monsoon months.
The evacuation campaign forms part of the city's broader disaster preparedness strategy, with officials continuing inspections and monitoring vulnerable buildings to minimize risks before the arrival of heavy seasonal rains.

Karachi | ReNews Pakistan
Pakistan’s energy sector has witnessed an important development as daily crude oil production of 2,000 barrels has started for the first time from Sanghar district in Sindh.
Oil and Gas Development Company Limited (OGDCL) has formally informed the Pakistan Stock Exchange about the commencement of oil production from the newly developed reserves.
According to OGDCL, a 4 inch diameter pipeline, approximately 1.5 kilometers long, has been laid to bring the crude oil production into immediate use and connect it with the relevant supply system.
The company stated that crude oil production from the Bobi Deep One well will help meet domestic energy requirements and reduce the country’s dependence on imported fuel.
Energy sector experts believe that increased local oil and gas production is a positive development for Pakistan’s energy security, foreign exchange reserves and industrial growth.