The Auditor General of Pakistan (AGP) report for 2025-26 reveals severe financial disparities among the country’s power distribution companies during the 2024-25 fiscal year (FY2024-25).
Lahore Electric Supply Company (Lesco) and Hyderabad Electric Supply Company (Hesco) recorded staggering net losses of Rs45.38 billion and Rs12.90 billion, respectively.
Conversely, Faisalabad Electric Supply Company (Fesco) and Multan Electric Power Company (Mepco) registered net profits, while Islamabad Electric Supply Company (Iesco) significantly reduced its annual losses.
Lesco, Hesco, and Mepco remain heavily vulnerable due to massive accumulated losses and growing employee retirement liabilities.
The accumulated losses of Hesco surged to Rs513 billion, and its creditor payment periods stretched to nearly 800 days. The utility holds a current ratio of 0.25, with its Rs102.98 billion retirement liabilities remaining entirely unfunded.
The accumulated of Lesco losses reached Rs331.20 billion, resulting in a negative equity of Rs174.95 billion and a working capital deficit of Rs92.45 billion. The company also recorded a negative net profit ratio of 6.87 percent alongside staff retirement obligations of Rs176.09 billion.
While Mepco managed to earn a net profit of Rs5.26 billion on revenues of Rs524.06 billion, it remains burdened by Rs174.56 billion in accumulated losses, Rs76.72 billion in negative equity, and Rs177.14 billion in retirement obligations.
Mepco reduced its transmission and distribution (T&D) losses to 13.33 percent, though this remains above Nepra’s 11.34 percent target, requiring Rs80.12 billion in government subsidies.
In contrast, Fesco and Iesco demonstrated measurable operational and financial improvements.
Fesco emerged as the top performer, posting a net profit of Rs9.43 billion up from Rs998 million the previous year on billed revenues of Rs470.12 billion.
Backed by capital restructuring and current-year profits, Fesco restored its total equity to a positive Rs62.97 billion, reduced its debtor turnover days to 65 days, and generated Rs15.05 billion in cash from operations, despite carrying Rs122.85 billion in retirement obligations.
Iesco narrowed its annual loss to Rs1.42 billion from Rs15.80 billion in FY2023-24, growing its revenue to Rs331.07 billion.
Iesco lowered its T&D losses to 8.39 percent, reduced debtor turnover days to 55 days, and generated Rs44.62 billion in cash from operations, though it faces an accumulated loss-driven equity erosion of Rs133.69 billion and retirement liabilities of Rs109.74 billion.
