Pakistan’s electricity distribution companies (DISCOs) recorded combined losses of Rs226 billion during the first 10 months of fiscal year 2025-26, despite showing an improvement compared to the same period last year.
According to official sources, the losses were recorded between July 2025 and April 2026 and were mainly caused by distribution inefficiencies, electricity theft, and recovery shortfalls across government-owned power distribution companies.
The latest data shows that overall losses declined by Rs66 billion compared to the corresponding period of the previous fiscal year, reflecting some improvement in the performance of the power distribution sector.
Of the total losses, approximately Rs169 billion were linked to inefficiencies and power theft, while another Rs57 billion resulted from under-recoveries and unpaid electricity bills.
Despite the reduction, the losses continue to add to Pakistan’s growing circular debt burden, which remains one of the biggest challenges facing the energy sector.
The government has been implementing reforms aimed at reducing transmission and distribution losses, improving bill collection rates, and enhancing the operational efficiency of distribution companies to strengthen the financial health of the power sector.
Also read: DISCOs Collect Over Rs700 Billion in Taxes From Consumers
