DISCO losses fall to Rs326bn in FY2025-26, report shows

Losses incurred by government-owned power distribution companies (DISCOs) stood at Rs326 billion during the financial year 2025-26, according to a report presented to the Cabinet Committee on Energy chaired by Prime Minister Shehbaz Sharif.

The report showed that losses attributed to inefficiencies and electricity theft reached Rs262 billion during the year, while losses related to electricity recoveries amounted to another Rs64 billion.

Despite the substantial burden on the national exchequer, overall DISCO losses declined by Rs71 billion compared with the previous financial year.

According to the document, distribution companies had recorded total losses of Rs397 billion in FY2024-25.

The losses had stood substantially higher at Rs591 billion in FY2023-24, meaning they declined by Rs194 billion in FY2024-25 before falling by another Rs71 billion in FY2025-26.

The figures highlight the continuing financial impact of distribution losses, electricity theft and weak recoveries on the country's power sector despite an improvement in overall losses over the past two years.