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Pakistan’s state-run power distribution companies (DISCOs) have inflicted massive losses of Rs171 billion in just the first quarter of the current fiscal year, highlighting the persistent inefficiencies and theft that continue to drain the national exchequer. The new data shows that while losses have decreased compared to last year, the power sector remains one of the country’s biggest financial burdens.
According to official documents, DISCOs suffered Rs87 billion in losses from July to September 2025 due to operational failures and electricity theft. Another Rs84 billion vanished because of weak bill recoveries. These recurring issues have long contributed to Pakistan’s growing circular debt a structural flaw that every government has struggled to contain.
Despite the alarming figures, the report shows marginal improvement. Last year, DISCO losses during the same three months reached Rs239 billion, meaning this year’s loss is Rs68 billion lower. In FY24-25 overall, DISCO losses were Rs397 billion still a heavy blow, but significantly less than the Rs591 billion recorded in FY23-24.
Officials say the trend shows partial progress, yet the core issues remain unaddressed. “Inefficiency, theft and under-recoveries continue to undermine the sector,” a Power Division representative noted, stressing that DISCO failures form a major chunk of the circular debt trap.
The data underscores the urgent need for structural reforms, as continued losses threaten both fiscal stability and Pakistan’s long-term energy security.
