Islamabad( The COW News Digital) The federal government has achieved a significant milestone by reducing electricity recovery losses by Rs 183 billion, marking a major step toward improving the financial health of Pakistan’s power sector. Despite ongoing challenges posed by inefficiency and electricity theft, this reduction reflects concerted efforts by authorities to strengthen recovery mechanisms and curb losses within state-owned distribution companies (DISCOs).
According to official data, the total losses due to DISCO inefficiency and electricity theft during the financial year 2024-25 amounted to Rs 265 billion, representing only a modest reduction of Rs 11 billion compared to Rs 276 billion in the previous year, 2023-24. While the overall losses remain substantial, the government’s focused efforts on under-recoveries have yielded more tangible results.
During the same period, under-recoveries by DISCOs decreased significantly from Rs 315 billion in FY 2023-24 to Rs 132 billion in FY 2024-25, highlighting a reduction of Rs 183 billion. This decline in under-recoveries demonstrates effective monitoring, enhanced billing systems, and stricter enforcement measures implemented by authorities to ensure that electricity consumption is properly accounted for and billed.
The reduction in losses comes as a relief to the national exchequer, which has historically borne the brunt of inefficiency and theft within the power sector. While power theft and operational inefficiency continue to be major challenges, the government’s achievements in lowering under-recoveries signal progress and a more disciplined approach to electricity distribution and revenue collection.
Experts note that sustained efforts are required to address structural issues within DISCOs, including outdated infrastructure, billing inefficiencies, and widespread electricity theft, which continue to impact the sector’s financial stability. Nevertheless, the reduction of Rs 183 billion in under-recoveries is being hailed as a landmark achievement, providing both fiscal relief and a blueprint for further reform.
Moving forward, authorities aim to continue implementing technology-driven monitoring, stricter enforcement, and public awareness campaigns to ensure continued reduction in losses. This achievement underscores the importance of accountability and systematic reforms in enhancing the performance of Pakistan’s power sector.
The government’s progress in reducing electricity recovery losses is seen as a positive signal for energy sector reform and fiscal management, offering hope for more efficient electricity distribution and long-term financial sustainability.
