Rs803 billion electricity losses in 3 years hit Pakistan’s power sector

Islamabad: Pakistan’s power distribution companies suffered a combined loss of about Rs803 billion over the last three financial years, while Quetta Electric Supply Company recorded the highest losses, reaching a shocking 60.2 percent in 2025-26, according to figures presented in the National Assembly.

The figures were provided by Minister for Energy Power Division Sardar Awais Ahmad Khan Leghari in response to a question raised by Mr. Sanjay Perwani about transmission and distribution losses of all Distribution Companies.

The total financial loss stood at Rs276 billion in 2023 24, fell slightly to Rs265 billion in 2024 25 and then remained at a massive Rs262 billion in 2025 26.

Overall distribution losses also improved only slightly, dropping from 18.3 percent in 2023 24 to 17.6 percent in 2024 25 and 17.2 percent in 2025 26.

QESCO showed the most alarming increase. Its losses rose from 29.8 percent in 2023-24 to 38.4 percent in 2024-25 and then jumped to 60.2 percent in 2025-26. The financial loss for QESCO also increased from Rs37 billion to Rs52 billion and then Rs82 billion.

PESCO also remained under heavy pressure. Its losses stood at 38.1 percent in 2023-24, 37.1 percent in 2024-25, and then increased to 40.7 percent in 2025-26. Its financial losses were Rs97 billion, Rs87 billion and Rs85 billion respectively.

SEPCO recorded losses of 34.9 percent in 2023-24, increasing to 39.2 percent in 2024-25 before falling slightly to 38.5 percent in 2025-26. Its financial losses reached Rs34 billion in the latest year.

HESCO also recorded high losses, with the rate standing at 27.6 percent in 2023-24, 27.9 percent in 2024-25, and 25.7 percent in 2025-26. The financial loss in the latest year was Rs20 billion.

LESCO, one of the country’s major distribution companies, reduced its losses from 15.9 percent to 13.7 percent and then to 12.2 percent. Its financial losses also fell from Rs48 billion to Rs35 billion and then Rs26 billion.

MEPCO also improved its loss rate from 15.3 percent in 2023-24 to 13.8 percent in 2024-25 and 12.4 percent in 2025-26. Its financial loss fell from Rs23 billion to Rs14 billion and then Rs6 billion.

FESCO showed similar improvement, with losses falling from 9.9 percent to 9 percent and then 8 percent. Its financial loss dropped from Rs5 billion to Rs3 billion and then Rs1 billion.

IESCO reduced losses from 8.9 percent to 8.6 percent and then 7.9 percent, while its financial loss fell from Rs6 billion to Rs5 billion and then Rs2 billion.

GEPCO also improved gradually, with losses declining from 11.5 percent in 2023-24 to 10.6 percent and then 10 percent. Its financial loss was Rs6 billion in 2025 26.

TESCO recorded losses of 8.6 percent in 2023-24, 8.3 percent in 2024-25, and 8.1 percent in 2025-26. The company remained below the loss limits allowed by NEPRA during the relevant years and therefore recorded savings, according to the government response.

HAZECO was separated from PESCO during 2025 26. Its distribution loss rate was reported at 15.9 percent in that year.

The government said several measures are being used to reduce electricity losses. These include building new grid stations, upgrading existing grids, dividing overloaded 11 kV feeders, adding power transformers and installing aerial bundled cables to control electricity theft.

The Power Division also plans to replace undersized conductors, faulty capacitors and old or defective electricity meters. Automated Meter Reading and Advanced Metering Infrastructure meters are also being introduced.

Anti theft campaigns are being carried out to reduce administrative losses and improve the recovery of electricity bills.