The Power Division has rebutted a recent report by the National Electric Power Regulatory Authority (NEPRA), arguing that the published data does not accurately reflect the significant operational and financial improvements achieved by Distribution Companies (DISCOs) during FY 2024-25.
According to officials, circular debt was reduced by Rs. 780 billion, falling from Rs. 2,393 billion in FY 2024 to Rs. 1,614 billion in FY 2025. DISCOs directly contributed Rs. 193 billion to this reduction through improved operational discipline, enhanced billing accuracy, and stricter enforcement against defaulters.
Additional gains came from successful negotiations for LPI waivers with power producers (Rs. 260 billion) and improved macroeconomic indicators (over Rs. 300 billion).
The Power Division highlighted a surge in recovery rates from 92.4% to 96.6%, marking a 4.2 percentage point increase, while revenue under-recovery dropped 42% from Rs. 315 billion to Rs. 132 billion. Transmission and Distribution (T&D) losses also fell from 18.3% to 17.6%, generating savings of Rs. 11 billion.
Officials clarified that current load shedding is based on economic considerations under the National Electricity Policy, ensuring sector sustainability. Efforts are underway to transition to transformer-level targeted load shedding to further optimize power distribution.
While legacy challenges remain, the Power Division emphasized that the sector is on a strong recovery path, urging policymakers, regulators, and the public to recognize the measurable progress achieved by DISCOs and the broader reforms in Pakistan’s electricity sector.
