Power Distribution Companies Inflict Billions in Losses on National Exchequer

Pakistan’s state-run power distribution companies (DISCOs) have caused losses amounting to Rs. 171 billion during the first quarter of the current fiscal year, according to documents available with ProPakistani. From July to September 2025, DISCOs recorded Rs. 87 billion in losses due to operational inefficiencies and electricity theft. In addition, collection-related losses during the same period stood at Rs. 84 billion, the documents reveal. Despite the heavy losses, the data indicates some improvement compared to last year. Total DISCO losses in July-September 2024 were recorded at Rs. 239 billion, showing a year-on-year reduction of Rs. 68 billion in the current fiscal year’s first quarter. During July-September 2024, losses caused by inefficiency and theft amounted to Rs. 113 billion, while collection losses were Rs. 126 billion, the documents show. For the full fiscal year 2024-25, DISCOs posted total losses of Rs. 397 billion, compared to Rs. 591 billion in 2023-24, reflecting a decrease of Rs. 194 billion. According to the Power Division, DISCO losses and under-recoveries constitute a major component of the circular debt in the power sector, continuing to burden the national economy.