MEPCO has returned to profitability after reporting a Rs. 1.05 billion profit, according to the Power Division. The company has completed a financial turnaround of more than Rs. 37 billion over the past two years. Officials said this marks a major improvement in the performance of one of Pakistan’s largest electricity distribution companies.
The Power Division said MEPCO moved from a Rs. 36 billion loss to a profit after a series of reforms. These changes were introduced during the tenure of Federal Minister for Power Sardar Awais Ahmad Khan Leghari. The ministry believes the reforms played a key role in improving the company’s financial position.
According to official figures, MEPCO also made significant progress in reducing electricity losses. The company’s line losses fell from 15.2 percent to 11.9 percent. This improvement helped reduce financial pressure and increased operational efficiency.
The ministry also reported stronger bill collection. The recovery rate improved from 98.6 percent to 100.8 percent. Officials said this reflects better payment collection and improved financial management. Higher recoveries have strengthened the company’s overall performance.
The Power Division credited the positive results to several reforms. These included improved billing systems, stricter action against electricity theft, and better monitoring of operations. Officials said these measures helped increase efficiency while reducing unnecessary losses.
The ministry also highlighted improvements in governance. An independent board of directors was given a stronger role in overseeing the company’s operations. Better oversight and accountability helped support the reform process.
Technology also played an important role in the company’s recovery. The Power Division said greater automation improved operational monitoring and decision-making. The use of modern technology helped identify problems more quickly and improve overall performance.
Officials said transparency was another important factor behind the turnaround. Stronger internal controls and improved management practices helped build a more efficient system. These changes supported the company’s long-term financial stability.
The Power Division described MEPCO as an example of how reforms can improve the performance of public sector electricity companies. It said similar governance, transparency, and technology-driven reforms are now being introduced across other electricity distribution companies in Pakistan.
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The ministry believes these measures will help improve service delivery and reduce financial losses throughout the power sector. Officials said continued reforms remain important for strengthening Pakistan’s electricity distribution system and ensuring more sustainable operations in the future.
