Pesco cuts losses by Rs20bn in FY24

PESHAWAR: Peshawar Electric Supply Company (Pesco) has achieved a milestone by reducing its financial losses by Rs20 billion in the fiscal year 2024-25 — the first significant improvement in the last five years.

According to official data figures, Pesco had been facing consistent financial setbacks over the past several years. Financial losses had escalated from Rs42 billion in FY 2020-21 to Rs77 billion in 2021-22, Rs109 billion in 2022-23, and reached an alarming Rs142 billion in 2023-24. However, by the end of FY 2024-25, financial losses were successfully brought down to Rs122 billion, reflecting a savings of Rs20 billion as compared to fiscal year 2023-24 for the company.

Pesco data revealed that during the fiscal year 2024-25, operation teams successfully removed 40,123 illegal direct connections (kundas). 1872 individuals were arrested on the spot for illegally tapping electricity from the Pesco distribution network. Pesco also initiated legal proceedings against violators, requesting 32739 FIRs, out of which 9720 FIRs have already been lodged by police. As part of the punitive measures, Pesco has imposed fines totaling Rs1.3 billion individuals found guilty of electricity theft.

Pesco Board of Directors Chairman Himayatullah Khan commended the Pesco management for their tireless efforts in steering the company toward financial recovery. Talking to this correspondent, he said that despite having only 43 percent of the required human resources to serve 4.5 million consumers, Pesco employees continued to serve their communities.

He said Pesco has achieved a noticeable reduction in transmission and distribution (T&D) losses, bringing the figure down to 36.81 percent in the current fiscal year from 37.99 percent in the previous year. Simultaneously, the overall Aggregate Technical & Commercial (AT&C) losses have been reduced to 41.62 percent during FY 2024-25 in comparison to 42.81 percent in FY 2023-24. Moreover, revenue collection from private consumers surged to an impressive 91.69 percent as compared to 90.6 percent in the previous year, reflecting enhanced operational efficiency and consumer compliance, thus improving the financial health of the company.

The chairman said that one of the first major steps taken by the Board of Directors was introducing targeted policies for the industrial and commercial sector. An exclusive 24-installment payment plan was offered to industries whose electricity connections were disconnected due to unpaid bills, paving the way for the revival of operations and increased revenue for Pesco. Additionally, new industrial grids were constructed, and overloaded industrial feeders were divided to ensure a smoother supply.

Himayatullah said that in the summer of 2024, Pesco faced unprecedented challenges, with 316 attacks on Pesco grid stations by protesters attempting to forcibly energize high-loss feeders, resulting in approximately Rs3 billion in financial loss due to the forced supply of electricity to high-loss feeders/areas. These attacks drastically declined to only 43 incidents from May 2025 to July 2025 as the Pesco chairman held several meetings with the chief minister, chief secretary, and district administration to deal with the issue.

He said that despite facing an increasingly volatile law and order in the region, Pesco employees have shown unwavering dedication and resilience in delivering uninterrupted public service. Pesco management has taken all necessary steps to ensure the safety and morale of its workforce, including coordinating with law enforcement agencies and providing additional logistical support to frontline staff.

“Pesco has completed Phase 1 of the installation of AMR meters, with a focus on replacing the existing 3-phase meters that primarily serve industrial connections. About 62,294 connections, which account for almost 50 percent of Pesco’s overall recovery, that included 3-phase industrial, tube wells, and commercial connections, have been replaced with AMR meters”, he concluded