Discos Slash Power Losses as Anti-Theft Efforts Rise
Electricity distribution companies in Pakistan reduced their financial losses during the first quarter of FY2025, indicating improved sector performance overall.
Power Division data shows losses from July to September fell to Rs171 billion, compared with Rs249 billion during last year.
Officials attribute the decline to stricter oversight, stronger enforcement, and focused anti-theft operations across various electricity distribution regions.
Losses linked to incompetence and power theft dropped to Rs87 billion in FY2025, down from Rs113 billion last year significantly.
Shortfalls caused by poor electricity bill collections fell to Rs84 billion, down from Rs126 billion during last year’s comparable quarter.
These highlight progress in two persistent problem areas for distribution companies: operational inefficiency and chronically weak revenue recovery systems.
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The annual figures of Power Division also show broader improvement, reflecting a notable decline in sector-wide financial losses during FY2024–25 period.
Total losses for FY2024–25 amounted to Rs397 billion, significantly lower than the previous fiscal year’s loss figure of Rs591 billion.
This nearly Rs194 billion reduction represents one of the most substantial annual improvements recorded within struggling electricity distribution sector.
Officials believe sustained enforcement efforts and ongoing reforms will be essential for preserving the progress achieved during the fiscal period.
They argue improved performance could reduce financial pressures, strengthen sector stability, and support strategies aimed at limiting future tariff increases.
