Power sector bleeds

September 7, 2026

Pakistanis continue suffering from the power sector’s inefficiency and the power distribution system continues to suffer from huge financial losses. According to figures presented in the National Assembly, power distribution companies collectively suffered losses of around Rs803 billion during the last three financial years. The losses are alarming, particularly at a time when ordinary Pakistanis are struggling with high electricity bills and a rising cost of living. The total losses stood at Rs276 billion in 2023-24. They declined slightly to Rs265 billion in 2024-25 and Rs262 billion in 2025-26. While this shows some improvement, the overall situation remains deeply worrying. A loss of Rs262 billion in a single year cannot be described as a success.

The most troubling case is Quetta Electric Supply Company, or QESCO. Its distribution losses increased dramatically to 60.2 percent in 2025-26. This means that a major portion of the electricity supplied through its network is either lost because of technical problems, theft or poor recovery. Its financial losses reached Rs82 billion during the latest financial year.

PESCO also remains under serious pressure, with losses rising to 40.7 percent in 2025-26. Other companies, including SEPCO and HESCO, continue to record high levels of losses.

However, the figures also show that improvement is possible. LESCO, which serves Lahore and surrounding areas, reduced its losses to 12.2 percent. MEPCO, FESCO, IESCO and GEPCO also showed progress. These examples prove that better management, investment and strict monitoring can produce results.

The real question is who ultimately pays for the losses of poorly performing distribution companies. In many cases, the burden eventually falls on honest consumers through higher tariffs, government subsidies and increased public debt. This is unfair to citizens who regularly pay their electricity bills.

The government has announced several measures, including the construction and upgrading of grid stations, installation of modern meters, replacement of old equipment and stronger campaigns against electricity theft. These are important steps, but plans alone will not solve the problem.

Pakistan needs stronger accountability in the power sector. Companies with extremely high losses must be asked to explain their failures and improve their performance. Electricity theft must be dealt with without political pressure or discrimination.  The power sector cannot continue to lose hundreds of billions of rupees every few years.