TRADE & ECONOMY
Electricity distribution companies (DISCOs) across Pakistan caused a combined loss of Rs 472 billion to the national exchequer in the financial year 2024-25, according to the National Electric Power Regulatory Authority (NEPRA) performance report.
The report highlights that Rs 265 billion of these losses resulted from transmission and distribution inefficiencies. Among the major DISCOs, Peshawar Electric Supply Company (PESCO) suffered the highest loss of Rs 87.48 billion, followed by Quetta Electric Supply Company at Rs 52.41 billion. Other notable losses include Sukkur Electric Power at Rs 36.40 billion, Lahore Electric Supply Company at Rs 35.17 billion, and Hyderabad Electric Supply Company at Rs 27.14 billion.
At the lower end of the spectrum, Multan Electric Power Company reported losses of Rs 14 billion, while Faisalabad Electric Supply Company incurred Rs 2.97 billion. Islamabad Electric Supply Company (IESCO) and Gujranwala Electric Power Company reported losses of Rs 4.78 billion and Rs 5.5 billion, respectively. K-Electric’s transmission and distribution losses were not included in the NEPRA report.
In addition to technical losses, DISCOs also suffered Rs 207 billion in short collections during FY 2024-25. Of this, standard DISCOs accounted for Rs 132 billion, while K-Electric incurred Rs 74.66 billion in shortfall.
NEPRA noted that these losses in transmission, distribution, and collections remain the primary contributors to the increasing circular debt in Pakistan’s power sector, highlighting the urgent need for reforms and improved efficiency in energy distribution.