Pakistan’s electricity distribution companies (DISCOs) recorded combined losses of Rs. 226 billion during the first 10 months of fiscal year 2025-26, despite showing an improvement compared with the same period last year.
According to official sources, the losses were recorded between July 2025 and April 2026 and primarily stemmed from distribution inefficiencies, power theft, and recovery shortfalls across government-owned power distribution companies.
The latest figures show that total losses declined by Rs. 66 billion compared with the corresponding period of the previous fiscal year, indicating some improvement in the performance of the power distribution sector.
Of the total Rs. 226 billion losses, around Rs. 169 billion were attributed to inefficiencies and electricity theft, while another Rs. 57 billion resulted from under recoveries and non-payment of electricity bills.
The losses incurred by DISCOs remain a key contributor to Pakistan’s circular debt problem, which continues to place financial pressure on the country’s power sector. The government has been pursuing reforms to reduce transmission and distribution losses, improve bill recoveries, and strengthen the operational performance of distribution companies.
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