Losses under government-owned power distribution companies (DISCOs) have have surged to Rs. 114 billion between July 2024 and February 2025, government sources informed ProPakistani.
This marks a big increase of Rs. 32 billion from Rs. 82 billion in losses recorded during the same period last year.
Despite the rise in overall losses, a major improvement was observed in recovery performance. Under-recoveries fell sharply by Rs. 133 billion, standing at Rs. 76 billion this fiscal year compared to Rs. 209 billion in the corresponding period last year. The improvement in recoveries is seen as a positive development, though overall losses continue to add to the power sector’s circular debt burden.
To address the financial strain in the sector, the government has already raised the basic electricity tariff by Rs. 7.12 per unit during the ongoing fiscal year, sources added.