Lahore Electric Supply Company (LESCO) says it has significantly improved its financial performance, reporting a Rs. 136 billion reduction in circular debt over the past two years while achieving near-100 percent bill recovery.

In a statement, LESCO Chief Executive Officer Engineer Muhammad Ramzan Butt said circular debt is a complex national issue driven by multiple financial, regulatory, and operational factors, and cannot be linked solely to transmission and distribution losses.

According to the company, its circular debt fell from Rs. 339 billion in FY2023-24 to Rs. 203 billion in FY2025-26, representing a reduction of Rs. 136 billion.

LESCO attributed the improvement to tighter financial controls, lower line losses, improved governance, timely payments for electricity purchases, and sustained bill recovery during the past fiscal year. It also clarified that circular debt figures for FY2021-22 and FY2022-23 had been revised after audited accounts replaced provisional estimates.

The utility credited the progress to reforms introduced under the Ministry of Energy (Power Division), oversight by its Board of Directors, and measures implemented under the leadership of CEO Muhammad Ramzan Butt, including a zero-tolerance policy against electricity theft and overbilling.

Looking ahead, LESCO said it has prepared a roadmap for FY2026-27 to FY2028-29 with the goal of reducing circular debt to below Rs. 150 billion.

The company added that it will continue working to further reduce line losses, strengthen bill recovery, improve transparency and accountability, and enhance customer service as part of its efforts to improve the performance of Pakistan’s power sector.