Pakistan’s power distribution companies reduce losses in the first quarter of the current fiscal year.

The current fiscal year’s first-quarter results show a slight recovery, with DISCOs achieving a recovery rate of 91%, up from 84% during the previous year. This recovery rate reflects the positive impact of measures taken to improve operational efficiency and reduce financial losses.

Moreover, the circular debt, which had soared by Rs 301 billion from July to October last year, has only increased by Rs 11 billion in the first four months of the current year. The Power Division attributed this reduction to the enhanced performance of the power sector, suggesting a positive trend towards managing the financial challenges that have long plagued the industry.

These improvements in loss reduction and circular debt management are seen as encouraging steps towards stabilising Pakistan’s energy sector, which has faced severe financial difficulties in recent years. However, the Power Division has emphasised the need for continued efforts to further reduce losses and address the underlying structural issues within the sector.