Discos Fail to Recover Rs. 480 Billion from Defaulters

The government’s claims of recovering outstanding electricity bills from defaulters have fallen flat, as power distribution companies (Discos) failed to recover Rs. 480 billion from defaulters, according to the Auditor General of Pakistan’s audit report for the fiscal year 2024-25. The report highlights that recovering electricity bills from defaulters remains a significant challenge for Discos. It revealed that Discos were unable to recover dues from 476,488 defaulters, further exacerbating the financial crisis in the power sector. The audit report disclosed that outstanding electricity bill dues have increased by Rs. 828 billion over the past six years. In 2021-22, the total outstanding amount stood at Rs. 1,189 billion, which surged to Rs. 2,017 billion by 2024. The report also noted a sharp rise in non-recoveries during 2021-22, with an increase of Rs. 341 billion. By the end of 2022-23, the outstanding dues had grown by Rs. 197 billion, and in 2023-24, the amount further escalated by Rs. 290 billion. The audit report revealed that the total outstanding dues in the recovery category increased from Rs. 1,189 billion in 2021-22 to Rs. 1,530 billion, highlighting the growing inefficiency in recovering payments.