The National Electric Power Regulatory Authority (NEPRA) on Friday released its Power Sector State of Industry Report 2025, declaring the overall performance of Pakistan’s power sector during fiscal year 2024–25 as limited and inadequate, with persistent structural, financial and operational challenges.
According to the report, electricity prices have become unsustainable mainly due to heavy taxes, surcharges, and duties imposed on consumers. NEPRA noted that power distribution companies (DISCOs) largely failed to achieve the loss-reduction targets set for the year, further aggravating inefficiencies across the sector.
The report revealed that only one power distribution company, Tribal Electric Supply Company (TESCO), managed to meet NEPRA’s loss target in fiscal year 2025. All other companies — K-Electric, PESCO, HESCO, SEPCO and KESCO — showed poor performance, struggling with long load shedding hours, low recovery rates and mounting liabilities.
NEPRA highlighted that circular debt increased by Rs 397 billion within a single year, primarily due to continued losses incurred by power distribution companies. It warned that without urgent reforms, the financial sustainability of the sector would remain at serious risk.
The regulator also identified the absence of reliable and digital data within power sector institutions as a major obstacle to effective planning and decision-making. Delays in the issuance of new electricity connections and meters, along with prolonged delays in net metering approvals, were reported as common across DISCOs, including K-Electric.
On the generation side, the report pointed out that Thar coal-fired power plants remained underutilized during fiscal year 2025, operating at only 23 to 67 percent of their installed capacity. Similarly, the 4,000 MW Lahore–Matiari transmission line was utilised at just 35 percent, despite payments being made on a full-capacity basis.
NEPRA further noted that the electricity transmission system was not fully utilized during the year, while a comprehensive review of the system was not possible due to the unavailability of log reports. Almost all major transmission projects were reported to be delayed, compounding the sector’s inefficiencies.
The regulator stressed the need for urgent structural reforms, improved governance, digitalization, and better utilization of existing infrastructure to address the long-standing issues facing Pakistan’s power sector.