Power distribution companies’ losses reach Rs226 bln in FY2025-26

Pakistan’s state-owned power distribution companies (DISCOs) recorded cumulative losses of Rs226 billion during the first 10 months of the current fiscal year, according to official sources.

The losses were reported during the period from July 2025 to April 2026. Despite the substantial figure, the overall losses represent an improvement compared with the corresponding period of the previous fiscal year.

Sources said the combined losses of power distribution companies declined by Rs66 billion year-on-year during the first 10 months of the fiscal year, reflecting progress in efforts to improve operational performance and reduce financial leakages.

A breakdown of the figures shows that losses arising from inefficiencies and electricity theft amounted to Rs169 billion, accounting for the largest share of the total.

Meanwhile, losses linked to shortfalls in bill recoveries stood at Rs57 billion during the reporting period.

The figures underscore the continuing financial challenges facing Pakistan’s power sector, where electricity theft, transmission inefficiencies and weak recovery rates remain major obstacles to improving the sector’s sustainability and reducing the circular debt burden.