ISLAMABAD: Pakistan’s electricity distribution companies (DISCOs) recorded combined losses of Rs226 billion during the first 10 months of fiscal year 2025-26. The latest figures, nonetheless, showed an improvement when compared with the same period of the preceding fiscal year.
The losses covered the period from July 2025 to April 2026, comprising distribution inefficiencies, electricity theft, and poor recovery of outstanding dues. These issues continued to affect the financial performance of government-owned power distribution companies.
Officials said operational weaknesses remained a major challenge for the power sector. Moreover, electricity theft continued to reduce revenue collection across several distribution companies. Recovery shortfalls also placed additional pressure on the financial position of the DISCOs. As a result, the companies struggled to achieve better operational efficiency.
Despite these challenges, the latest data reflected positive progress. Total losses declined by Rs66 billion compared with the corresponding period of the previous fiscal year. Therefore, the figures suggested gradual improvement in the overall performance of the electricity distribution sector.
Officials attributed the reduction in losses to better operational management and improved monitoring measures. In addition, authorities continued efforts to strengthen revenue collection and reduce power theft. These initiatives helped lower the overall financial burden during the reporting period.
The government has repeatedly stressed the need to reform the power distribution system. It also aims to improve governance and increase the efficiency of state-owned DISCOs. Furthermore, authorities have pledged to enhance accountability and modernise infrastructure across the electricity network.
Energy experts believe sustained reforms remain essential for long-term financial stability. They argue that stronger enforcement against electricity theft and improved bill recovery will play a crucial role.
Meanwhile, policymakers continue to focus on reducing losses and improving service delivery. The latest figures indicate progress, although significant challenges remain for Pakistan’s electricity distribution sector.
