The Lahore Electric Supply Company (LESCO) has informed ProPakistani that contrary to recent media reports, it has reduced its circular debt by Rs. 136 billion over the past two years.
In a statement, LESCO Chief Executive Officer Engineer Muhammad Ramzan Butt told ProPakistani that the circular debt is a national issue and LESCO observed a decline from Rs. 339 billion in FY2023-24 to Rs. 203 billion in FY2025-26, calling it a historic reduction.
LESCO said the improvement was driven by lower line losses, near-100 percent bill recovery, and the timely payment of electricity purchase obligations during FY2024-25. It also noted that some circular debt figures for FY2021-22 and FY2022-23 were provisional and have since been revised following audited financial statements.
The company attributed the improvement to reforms implemented under the guidance of the Ministry of Energy (Power Division), oversight by its Board of Directors, and the leadership of CEO Muhammad Ramzan Butt. These measures included a zero-tolerance policy against overbilling and electricity theft, along with governance improvements.
Looking ahead, LESCO said it has prepared a three-year strategy for FY2026-27 to FY2028-29, aiming to reduce circular debt to below Rs. 150 billion.
The CEO said the company will continue focusing on reducing line losses, improving bill recovery, enhancing transparency and accountability, and delivering better services to consumers as part of efforts to strengthen Pakistan’s power sector.
Get the latest business news, market insights, and economic updates wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.