The Power Division has clarified that NEPRA’s recent reports on DISCOs’ performance do not fully reflect the sector’s achievements in FY 2024-25, highlighting major operational and financial improvements.

Officials said the circular debt was reduced by Rs 780 billion, falling from Rs 2,393 billion in FY 2024 to Rs 1,614 billion in FY 2025. Distribution Companies (DISCOs) contributed Rs 193 billion through improved recovery, enhanced billing accuracy, and strict enforcement against defaulters. Additional reductions came from successful LPI waiver negotiations with power producers (Rs 260 billion) and better macroeconomic conditions (over Rs 300 billion).

Recovery rates surged from 92.4% to 96.6%, while under-recoveries dropped 42% from Rs 315 billion to Rs 132 billion. Transmission and Distribution (T&D) losses also declined from 18.3% to 17.6%, saving Rs 11 billion.

Officials emphasized that current load shedding is economically driven, in line with the National Electricity Policy, to maintain sector sustainability. Efforts are underway to shift toward transformer-level targeted load shedding, further optimizing electricity distribution.

The Power Division stressed that, despite legacy challenges, these metrics demonstrate significant progress, reflecting that DISCOs and sector reforms are driving Pakistan’s power sector toward recovery.