Pakistan’s power distribution companies suffered significant financial setbacks during the fiscal year 2023–24, collectively incurring losses exceeding Rs. 276 billion, according to an audit report that has raised serious concerns over inefficiencies in the country’s energy sector.
The report revealed that transmission and distribution (T&D) losses rose to 18.31 percent—well above the 11.77 percent benchmark set by the National Electric Power Regulatory Authority (NEPRA). This shortfall widened the revenue gap and intensified the circular debt crisis.
Leading the list of loss-making companies, Peshawar Electric Supply Company (PESCO) faced additional losses worth Rs. 97.17 billion. Lahore Electric Supply Company (LESCO) followed with Rs. 47.63 billion, while Quetta Electric Supply Company (QESCO) recorded Rs. 36.75 billion in excess losses.
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Several other regional utilities also posted notable deficits: Sukkur Electric Supply Company lost Rs. 29 billion, Hyderabad Electric Supply Company Rs. 23.18 billion, and Multan Electric Supply Company Rs. 22.66 billion. Smaller but significant losses were also reported by Gujranwala (Rs. 9.22 billion), Islamabad (Rs. 5.87 billion), and Faisalabad (Rs. 5 billion) electric companies.
Despite the government’s investment of Rs. 163 billion to boost power distribution efficiency, these losses persisted. Additionally, circular debt surged by more than Rs. 235 billion, mainly due to lower-than-expected electricity bill recoveries—Rs. 3,885 billion was recovered against a target of Rs. 4,081 billion.
The Auditor General expressed concern over the continuing collection of debt servicing surcharges from consumers and advised that the focus should shift toward internal reforms.
